Technical Analysis with Candlestick Charts – 12 April 2022

Technical Analysis with Candlestick Charts – 12 April 2022

Fed Vice Chair Nominee to Speak Today

Asia Pacific stocks were mostly down on Tuesday morning. The Shanghai Composite is up 1.11% at 3,202.21. Overall, the Singapore MSCI is down 0.76% at 321.75. Over in Hong Kong, the Hang Seng Index up 0.71% at 21,278.00. In Japan, the Nikkei 225 is down 2.05% at 26,270.00, while the Topix index is down 1.53% at 1860.50. South Korea’s Kospi down 0.90% to 2668.84. Australia S&P/ASX 200 down 0.47% at 7450.10.

Top News of the Day:

Fed Speech: Fed Vice Chair nominee Lael Brainard will be speaking today. Last week Brainard said the Fed could start reducing its balance sheet as soon as May at a rapid pace. Brainard, along with Chair Jerome Powell, is still awaiting a Senate confirmation vote.

Market Summary as per 11/04/2022:

European equities Monday closing. The DAX futures contract in Germany traded down 0.64% at 14,192.78, CAC 40 futures up 0.12% at 6555.82 and the UK 100 futures contract in the U.K. down 0.67% at 7,618.32.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 1.19% at 34308.09. The S&P 500 down 1.69% at 4412.54 and the Nasdaq 100 down 2.35% at 13990.21, NYSE closes down 0.93% at 16534.20.

Top Market News Today:

In the Forex market, GBPUSD down 0.16% at 1.3008. The USDJPY up 0.25% at 125.661. The USDCHF up 0.17% at 0.9322. EURUSD down 0.18% at 1.0864, EUR/GBP up 0.01% at 0.8351. The USD/CNY down 0.01% at 6.3687 at the time of writing.

In the Commodity market U.S. Gold futures up 0.19% at $1,957.24. Elsewhere, Silver futures up 0.43% at $25.178 per ounce, Platinum flat at $980.50 per ounce, and Palladium up 0.53% at $2446.00.

Crude Oil up on Tuesday; Brent crude oil up 2.08% at $101.42 per barrel while U.S. West Texas Intermediate (CLc1) up 2.60% at $97.08.

In the Cryptocurrency Markets, Bitcoin at 40020.00 up 0.16%, Ethereum up 1.18% at 3014.85, Litecoin at 104.04 up 1.49%, at the time of writing.

Top Market Segment to Watch Out Today:

DOLLAR INDEX: The Dollar Index held firm on Tuesday, supported by high U.S. yields ahead of inflation data that is expected to show U.S. prices gained the most in over 16 years, reinforcing expectations of aggressive Fed tightening policy.

The index rose as high as 100.13, testing last weeks near two-year high of 100.19, before hovering just below 100. The dollar’s recent gains against the yen (JPY) have been its most striking. The U.S. currency was trading choppily at 125.22 yen on Tuesday, in sight of the overnight intraday high of 125.77, which was near its June 2015 peak of 125.86.

Economic News:

US: A rally in U.S. credit markets after the U.S. Federal Reserve started hiking rates last month was short-lived and some corporate bonds hit new lows on Monday amid rising bond yields and concerns over the economic outlook.

BlackRock’s iShares iBoxx $ High Yield Corporate Bond ETF – an exchange-traded fund which tracks the U.S. junk-bond market – fell 0.6% to trade at $79.76 a share on Monday, its lowest since May 2020.

Its investment grade equivalent was also down sharply, by over 1%, hitting its lowest since March 2020.

Corporate bonds have had a rough start to the year but credit spreads – the interest rate premium investors demand to hold corporate debt over safer U.S. Treasury bonds – tightened after the Fed hiked rates in March.

Eurozone: Britain’s unemployment rate fell to 3.8% in the three months to February, slipping further below its level immediately before the coronavirus pandemic, official figures showed on Tuesday.

A Reuters poll of economists had pointed to the jobless rate falling to 3.8% – matching a low in October to December 2019 – from a previous reading of 3.9%. The last time the British unemployment rate was lower than 3.8% was in 1974.

The number of job vacancies hit a fresh record high in the three months to March at 1.288 million, a reminder of the potential inflationary heat in the labour market that has the Bank of England on alert as it raises interest rates.

Employment was up by 10,000 in the December-February period while unemployment fell by 86,000, the Office for National Statistics said.

Top Economic Releases Today:

  1. U.K. Claimant Count Change (Mar) today at 2:00 previously which was -58.0K. 
  2. U.K. Unemployment Rate (Feb) today at 2:00 this time estimated 3.8%, previously which was 3.9%.
  3. GERMANY ZEW Economic Sentiment (Apr) today at 5:00 this time estimated -48.0, previously which was -39.3.
  4. U.S. Core CPI (MoM) (Mar) today at 8:30 this time estimated 0.5%, previously which was 0.5%.
  5. CHINA Trade Balance (USD) (Mar) today at 23:00 this time estimated 22.40B, previously which was 115.95B.

TECHNICAL SUMMARY

GBPUSD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 1.3008, TAKE PROFIT AT 1.2998 AND STOP LOSS AT 1.3017

EURUSD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 1.0861, TAKE PROFIT AT 1.0846 AND STOP LOSS AT 1.0888

GBPJPY

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 163.274, TAKE PROFIT AT 163.804 AND STOP LOSS AT 162.672

CHFJPY

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 134.367, TAKE PROFIT AT 134.735 AND STOP LOSS AT 134.266

EURO STOXX 50

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 3702.00 TAKE PROFIT AT 3698.00 AND STOP LOSS AT 3708.00

WTI CRUDE OIL

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 96.45 TAKE PROFIT AT 93.84 AND STOP LOSS AT 98.70

GOLD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 1953.96, TAKE PROFIT AT 1961.26 AND STOP AT 1942.15

BITCOIN 

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 40269.76 TAKE PROFIT AT 39595.26 AND STOP AT 40985.28

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