Technical Analysis with Candlestick Charts – 07 April 2022

Technical Analysis with Candlestick Charts – 07 April 2022

Technical Analysis

Fed: To Tighten the Reins on the Economy

Asia Pacific stocks were down on Thursday morning. The Shanghai Composite is down 0.70% at 3,260.53. Overall, the Singapore MSCI is down 1.17% at 330.30. Over in Hong Kong, the Hang Seng Index down 0.75% at 21,927.00. In Japan, the Nikkei 225 is down 1.90% at 26,910.00, while the Topix index is down 1.84% at 1892.00. South Korea’s Kospi down 1.27% to 2700.24. Australia S&P/ASX 200 down 0.63% at 7443.10.

Top News of the Day:

Fed will ride the market today: The Fed signalled in its minutes on Wednesday that it was prepared to act more quickly to tighten the reins on the economy to contain rampant inflation, including pare-down of its balance sheet of bonds more quickly than originally anticipated.

Market Summary as per 06/04/2022:

European equities Wednesday closing. The DAX futures contract in Germany traded down 1.89% at 14,151.69, CAC 40 futures down 2.21% at 6498.84 and the UK 100 futures contract in the U.K. down 0.34% at 7,587.71.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 0.42% at 34496.52. The S&P 500 down 0.97% at 4481.16 and the Nasdaq 100 down 2.17% at 14498.89, NYSE closes down 0.35% at 16587.10.

Top Market News Today:

In the Forex market, GBPUSD up 0.16% at 1.3088. The USDJPY down 0.03% at 123.706. The USDCHF down 0.07% at 0.9324. EURUSD up 0.27% at 1.0920, EUR/GBP up 0.13% at 0.8344. The USD/CNY down 0.05% at 6.3596 at the time of writing.

In the Commodity market U.S. Gold futures up 0.05% at $1,924.39. Elsewhere, Silver futures down 0.49% at $24.316 per ounce, Platinum down 0.73% at $945.50 per ounce, and Palladium up 1.41% at $2227.50.

Crude Oil up on Thursday; Brent crude oil up 0.78% at $102.50 per barrel while U.S. West Texas Intermediate (CLc1) up 0.66% at $96.780.

In the Cryptocurrency Markets, Bitcoin at 43460.16 up 0.61%, Ethereum up 1.42% at 3213.97, Litecoin at 112.71 up 0.93%, at the time of writing.

Top Market Segment to Watch Out Today:

Crude Oil: Oil prices rose on Thursday from a three-week low touched in the previous session after consuming nations announced a huge release of oil from emergency reserves, with worries over tight supply still clouding the market outlook.

Brent crude futures climbed $1.48 or 1.5%, to $102.55 a barrel at 0442 GMT, while U.S. West Texas Intermediate (WTI) crude futures rose $1.26, or 1.3%, to $97.49 a barrel.

Economic News:

US: Risks of rising inflation could prompt the Swiss National Bank to start exiting its ultra-loose monetary policy, the International Monetary Fund (IMF) suggested on Wednesday.

Although uncertainty remains high, the pickup of inflation is expected to be temporary, with inflation returning to the SNB’s 0%–2% target band in the first half of 2023, the IMF said in a review of the Swiss economy, putting inflation at 2.5% in 2022 and 1.6% in 2023.

The Swiss franc’s appreciation has mitigated price rises and wage pressures appeared muted despite a tight labour market.

The SNB said last month while keeping policy on hold it would take “all necessary measures” to tackle higher prices, indicating a shift in tone at the central bank that for years has battled to tame the safe-haven franc’s strength.

Eurozone: Ukraine will need a reconstruction plan after the war with Russia similar to the one the United States offered to Europe after the Second World War, European Budget Commissioner Johannes Hahn said on Wednesday.

Under the post-World War Two U.S. scheme known as the Marshall Plan, the United States granted Europe the present-day equivalent of some $200 billion over four years in economic and technical assistance.

Hahn said it would help Ukraine recover quickly, rather than over decades, from the massive destruction by the Russian army and would lead to a faster convergence of Ukraine with the European Union.

Kyiv has applied to become a formal candidate to join the 27 nation bloc. Even in peacetime that process is long, and it has been made almost impossible by the war raging in the country.

Top Economic Releases Today:

  1. EURO ZONE Retail Sales (MoM) (Feb) today at 5:00 this time estimated 0.6%, previously which was 0.2%. 
  2. U.S. Initial Jobless Claims today at 8:30 this time estimated 200K, previously which was 202K.
  3. JAPAN Current Account (Feb) today at 19:50 this time estimated 1.437T, previously which was -1.189T.
  4. U.K. Halifax House Price Index (MoM) (Mar) today at 2:00 previously which was 0.8%.
  5. SWITZERLAND Unemployment Rate (Mar) today at 01:45 this time estimated 2.2%, previously which was 2.3%.

TECHNICAL SUMMARY

GBPUSD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 1.3100, TAKE PROFIT AT 1.3048 AND STOP LOSS AT 1.3142

EURUSD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 1.0894, TAKE PROFIT AT 1.0889 AND STOP LOSS AT 1.0903

GBPJPY

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 162.103, TAKE PROFIT AT 162.215 AND STOP LOSS AT 162.000

CHFJPY

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 132.595, TAKE PROFIT AT 132.845 AND STOP LOSS AT 132.324

NIKKEI 225

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 26939.00 TAKE PROFIT AT 26687.00 AND STOP LOSS AT 27119.00

WTI CRUDE OIL

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 96.13 TAKE PROFIT AT 93.01 AND STOP LOSS AT 99.04

GOLD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 1927.58, TAKE PROFIT AT 1914.53 AND STOP AT 1940.19

BITCOIN USD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 43437.26 TAKE PROFIT AT 42475.94 AND STOP AT 44249.31

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