Technical Analysis with Candlestick Charts – 20 January 2022

Technical Analysis with Candlestick Charts – 20 January 2022

Technical Analysis

Asia Pacific stocks were mostly up on Thursday morning. The Shanghai composite is up 0.05% at 3,559.87. Overall, the Singapore MSCI down 0.32% at 343.00. Over in Hong Kong, the Hang Seng Index up 2.77% at 24,741.00. In Japan, the Nikkei 225 up 0.80% at 27,740.00, while the Topix index is up 0.62% at 1936.50. South Korea’s Kospi up 0.69% to 2861.87. Australia S&P/ASX 200 up 0.14% at 7342.40.

European equities Wednesday closing. The DAX futures contract in Germany traded up 0.31% at 15823.00, CAC 40 futures up 0.55% at 7172.99 and the UK 100 futures contract in the U.K. up 0.35% at 7,589.67.

In U.S. on Wall Street, the Dow Jones Industrial Average closed down 0.96% at 35028.66. The S&P 500 down 0.97% at 4532.77 and the Nasdaq 100 down 1.07% at 15047.84, NYSE closes down 0.78% at 16818.97.

In the Forex market, GBPUSD up 0.11% at 1.36275. The USDJPY up 0.14% at 114.478. The USDCHF down 0.03% at 0.9154. EURUSD up 0.08 % at 1.13513, EUR/GBP down 0.01% at 0.8330. The USD/CNY down 0.01% at 6.3439 at the time of writing.

In the commodity market U.S. Gold futures down 0.03% at $1,839.73. Elsewhere, Silver futures up 0.31% at $24.205 per ounce, Platinum up 0.24% at $1026.50 per ounce, and Palladium down 0.42% at $1994.50.

Crude Oil up on Thursday; Brent crude oil up 0.87% at $88.34 per barrel while U.S. West Texas Intermediate (CLc1) up 0.94% at $85.67.

In the Cryptocurrency Markets, Bitcoin at 42006.50 up 0.81%, Ethereum up 1.92% at 3142.18, Litecoin at 138.77 up 1.77%, at the time of writing.

TOP STOCKS TO WATCH OUT TODAY:

Procter & Gamble Co. up 3.363% at $162.00, Dollar General Corp. up 3.205% at $219.94, Electronic Arts. up 2.24% to $136.91, Ford Motor Co. down 7.916% at $22.45, Moderna Inc. down 6.72% to $174.07, KLA Corp. down 4.792% at $393.19.

Economic news:

US: The interest rate on the most popular U.S. home loan rose for a fourth straight week last week, with residential real estate borrowing costs now the highest in nearly two years as financial markets anticipate that the Federal Reserve will raise rates sooner and faster than previously expected to combat inflation.

The Mortgage Bankers Association on Wednesday said its weekly measure of the average contract rate on a 30-year, fixed-rate mortgage climbed to 3.64% in the week ended Jan. 14 from 3.52% a week earlier. That was the highest since March 2020 when the pandemic triggered a recession and drove borrowing costs to historic lows as the Fed cut its benchmark interest rate to near zero.

With inflation running at the highest rate in a generation and the job market near full employment, the Fed is now seen rapidly reining in the accommodation it put in place in the spring of 2020, and financial markets are frantically repricing for an initial rate hike by the central bank by mid-March.

That reset has driven up the yields on the Treasury securities that influence mortgage rates, and home financing costs have followed suit: MBA’s 30-year contract rate has climbed from 3.27% in mid-December.

The rate rise is crimping application volumes for mortgage refinancings, but appears to be helping to lift applications for home-purchase loans, which saw the largest increase in six months last week as prospective buyers looked to lock in rates that, while rising, are still historically low.

Eurozone: Inflation in Britain rose faster than expected to its highest in nearly 30 years in December, intensifying a squeeze on living standards and putting pressure on the Bank of England to raise interest rates again.

The annual rate of consumer price inflation increased to 5.4% from November’s 5.1%, the highest since March 1992, the Office for National Statistics said. Economists polled by Reuters had expected a rise to 5.2%.

Financial markets now price in a more than 90% chance that the BoE will raise its main interest rate to 0.5% on Feb. 3. Last month it became the world’s first major central bank to tighten policy since the start of the COVID-19 pandemic.

“The Bank of England was already feeling uncomfortable about its monetary policy stance. Today’s upside surprises to both the headline and core inflation readings will certainly not have helped,” said Ambrose Crofton, global market strategist at J.P. Morgan Asset Management.

Important Data: EUROZONE CPI (YoY) (Dec) today at 5:00 this time estimated 5.0%, previously which was 5.0%. US Initial Jobless Claims today at 8:30 this time estimated 220K, previously which was 230K. US Existing Home Sales (Dec) today at 10:00 this time estimated 6.44M, previously which was 6.46M. JAPAN National Core CPI (YoY) (Dec) today at 18:30 this time estimated 0.6%, previously which was 0.5%.

TECHNICAL REPORT

GBPUSD

Candlestick Charts
Technical Analysis

TRADE SUGGESTION- BUY AT 1.36263, TAKE PROFIT AT 1.36631 AND STOP LOSS AT 1.36022

EURUSD

Candlestick Charts
Technical Analysis

TRADE SUGGESTION- SELL AT 1.13489, TAKE PROFIT AT 1.13306 AND STOP LOSS AT 1.13727

GBPJPY

Candlestick Charts
Technical Analysis

TRADE SUGGESTION- SELL AT 155.940, TAKE PROFIT AT 155.409 AND STOP LOSS AT 156.507

CHFJPY

Candlestick Charts
Technical Analysis

TRADE SUGGESTION- SELL AT 124.926, TAKE PROFIT AT 124.502 AND STOP LOSS AT 125.205

DOW JONES

Candlestick Charts
Technical Analysis

TRADE SUGGESTION- SELL AT 35085.00 TAKE PROFIT AT 34913.00 AND STOP LOSS AT 35274.00.

WTI CRUDE OIL

Candlestick Charts
Technical Analysis

TRADE SUGGESTION- BUY AT 85.50 TAKE PROFIT AT 86.31 AND STOP LOSS AT 84.84

GOLD

Candlestick Charts
Technical Analysis

TRADE SUGGESTION- BUY AT 1839.90, TAKE PROFIT AT 1848.50 AND STOP AT 1832.65

BTC USD

Candlestick Charts
Technical Analysis

TRADE SUGGESTION- SELL AT 41842.03 TAKE PROFIT AT 40964.04 AND STOP AT 43258.36

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