Technical Analysis Report on Forex, Stocks, Crypto and Nikkei 225 – 15 June

Technical Analysis Report on Forex, Stocks, Crypto and Nikkei 225 – 15 June

Technical Analysis

Investors Expect FED will Raise Interest Rate by 75 bps

Asia-Pacific stocks were mixed on Wednesday morning. The Shanghai Composite is up 1.40% at 3,334.55. Overall, the Singapore MSCI is up 0.57% at 284.75. Over in Hong Kong, the Hang Seng Index is up 1.55% at 21,221. In Japan, the Nikkei 225 is down 1.43% at 26,280.00, while the Topix index is down 1.38% at 1852.00. South Korea’s Kospi is down 1.83% at 2447.38. Australia S&P/ASX 200 down 1.27% at 6601.00.

Top News of the Day:

Investors have dramatically raised their bets that the U.S. Federal Reserve will raise interest rates by 75 basis points (bps) rather than 50 bps on Wednesday, a swing in expectations that has fuelled a violent selloff across world markets.

Investors worry that a 75-bps rate increase, which would be the biggest since 1994, will negatively impact the valuation of equities, particularly technology stocks, and jeopardize the post-COVID-19 recovery.

Market Summary as per 14/06/2022:

European equities Tuesday closing. The DAX futures contract in Germany traded down 0.91% at 13,304.39, CAC 40 futures down 1.20% at 5949.85 and the UK 100 futures contract in the U.K. down 0.25% at 7,187.47.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 0.50% at 30364.84. The S&P 500 down 0.38% at 3735.47 and the Nasdaq 100 up 0.21% at 11311.69, NYSE closes down 0.57% at 14444.64.

Top Market News Today:

In the Forex market, GBPUSD up 0.27% at 1.2028. The USDJPY down 0.60% at 134.632. The USDCHF down 0.35% at 0.9980. EURUSD up 0.67% at 1.0484, EUR/GBP up 0.41% at 0.8715. The USD/CNY down 0.39% at 6.7149 at the time of writing.

In the Commodity market U.S. Gold futures up 0.76% at $1,821.67. Elsewhere, Silver futures up 0.93% at $21.229 per ounce, Platinum up 1.19% at $933.50 per ounce, and Palladium up 0.52% at $1825.50.

Crude Oil up on Wednesday; Brent crude oil up 0.64% at $121.59 per barrel while U.S. West Texas Intermediate (CLc1) up 0.25% at $116.54.

In the Cryptocurrency Markets, Bitcoin at 21236.07 down 3.90%, Ethereum down 4.25% at 1125.33, Litecoin at 43.64 down 5.48%, at the time of writing.

Top Market Segment to Watch Out Today:

TOYOTA: Toyota Motor Corp, under scrutiny from investors over a perceived sluggish embrace of battery electric vehicles, said on Wednesday it needs to offer a variety of choices to suit different environments and customers.

At its annual general meeting, executives at the world’s largest automaker by sales tackled questions ranging from concerns about its electrification strategy to CEO succession plans and the ongoing chip shortage.

Economic News:

US: U.S. producer prices rose by less than expected in May, but the fall in pipeline inflation pressures was barely enough to soothe longer-term worries about the cost of living.

Overall producer prices rose 0.8% from April, but the core PPI index that strips out more volatile elements of the index rose by 0.5% rather than the 0.6% forecast. In addition, March’s increases were revised down to 0.4% from 0.5% for the overall index and to 0.2% from 0.4% for the core index.

Around 40% of the increase in prices for goods was due to the rise in gasoline prices during the month, the Bureau of Labor Statistics said. A near 40% rise in natural gas prices also helped to push up the overall index. But that obscured a more benign environment for other goods: food prices, conspicuously, failed to rise for the first time this year, while iron and steel scrap prices fell nearly 12%.

As a result, the annual rate of factory-gate inflation eased fractionally to 10.8% from a downwardly revised 10.9% in March.

Eurozone: The European Central Bank’s rate-setting Governing Council will hold an unscheduled meeting on Wednesday morning to discuss the recent sell-off in government bond markets, a spokesperson said.

Bond yields have risen sharply since the ECB promised a series of rate hikes last Thursday and the spread between the yields of Germany and more indebted southern nations, particularly Italy, soared to its highest in over two years.

“The Governing Council will have an ad-hoc meeting on Wednesday to discuss current market conditions,” an ECB spokesperson said.

Ten-year German yields, a benchmark for the 19-country currency union, hit 1.77% on Wednesday, their highest level since early 2014 while their Italian counterparts were 240 basis points higher, the largest spread since early 2020.

The euro surged around a half a percent to 1.0475 against the dollar early on Wednesday after the ECB’s announcement.

Top Economic Releases Today:

  1. U.S. Retail Sales (MoM) (May) today at 8:30 this time estimated 0.2%, previously which was 0.9%. 
  2. U.S. Crude Oil Inventories today at 10:30 this time estimated -1.314M, previously which was 2.025M.
  3. NEW ZEALAND GDP (QoQ) (Q1) today at 18:45 this time estimated 0.6%, previously which was 3.0%.
  4. JAPAN Exports (YoY) (May) today at 19:50 this time estimated 16.4%, previously which was 12.5%.
  5. AUSTRALIA Employment Change (May) today at 21:30 this time estimated 25.0K, previously which was 4.0K.

TECHNICAL SUMMARY

GBPUSD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 1.2029, TAKE PROFIT AT 1.1986 AND STOP LOSS AT 1.2120

EURUSD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 1.0485, TAKE PROFIT AT 1.0463 AND STOP LOSS AT 1.0512

GBPJPY

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 161.950, TAKE PROFIT AT 161.280 AND STOP LOSS AT 162.884

CHFJPY

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 134.850, TAKE PROFIT AT 135.337 AND STOP LOSS AT 134.509

DOW JONES

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 30440.00 TAKE PROFIT AT 30310.00 AND STOP LOSS AT 30587.00

WTI CRUDE OIL

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 118.92 TAKE PROFIT AT 120.39 AND STOP LOSS AT 118.10

GOLD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 1820.70, TAKE PROFIT AT 1807.01 AND STOP AT 1828.78

LITECOIN

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 41.10 TAKE PROFIT AT 40.06 AND STOP AT 42.39

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