Technical Analysis with Candlestick Charts – 28 March 2022

Technical Analysis with Candlestick Charts – 28 March 2022

Technical Analysis

DAILY FUNDAMENTAL SNAPSHOTS

Asia Pacific stocks were mostly up on Monday morning. The Shanghai Composite is up 0.02% at 3,212.79. Overall, the Singapore MSCI is down 0.58% at 332.95. Over in Hong Kong, the Hang Seng Index up 1.07% at 21,597.00. In Japan, the Nikkei 225 is down 0.68% at 27,720.00, while the Topix index is down 0.59% at 1951.50. South Korea’s Kospi down 0.12% to 2726.73. Australia S&P/ASX 200 up 0.08% at 7412.40.

Market Summary as per 25/03/2022:

European equities Friday closing. The DAX futures contract in Germany traded up 0.22% at 14,305.76, CAC 40 futures down 0.03% at 6553.69 and the UK 100 futures contract in the U.K. up 0.21% at 7,483.34.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 0.44% at 34861.25. The S&P 500 up 0.51% at 4543.05 and the Nasdaq 100 down 0.08% at 14754.31, NYSE closes up 0.54% at 16792.80.

Top Market News Today:

In the Forex market, GBPUSD down 0.31% at 1.3139. The USDJPY up 0.82% at 123.103. The USDCHF up 0.36% at 0.9337. EURUSD down 0.21% at 1.0958, EUR/GBP up 0.11% at 0.8338. The USD/CNY up 0.07% at 6.3704 at the time of writing.

In the Commodity market U.S. Gold futures down 1.07% at $1,936.58. Elsewhere, Silver futures down 1.52% at $25.080 per ounce, Platinum down 0.90% at $993.00 per ounce, and Palladium up 0.98% at $2360.00.

Crude Oil down on Monday; Brent crude oil down 2.99% at $112.475 per barrel while U.S. West Texas Intermediate (CLc1) down 3.24% at $107.794.

In the Cryptocurrency Markets, Bitcoin at 46928.34 up 0.14%, Ethereum up 0.71% at 3319.70, Litecoin at 131.49 up 1.40%, at the time of writing.

Top Market Segment to Watch Out Today:

BITCOIN: The Brazilian city of Rio de Janeiro will officially start accepting Bitcoin (BTC) payments for taxes related to urban real estate within their city limits, a.k.a. Imposto sobre a propriedade predial e territorial urbana (IPTU).

Economic News:

US: Two measures of the U.S. Treasury yield curve that are widely watched for recession warnings have veered in opposite directions, raising questions as to what degree central bank bond buying and other technical factors may be distorting the signals on the economy’s path.

The spread between the yield on 3-month Treasury bills and 10-year notes this month has been widening, which can be an indicator of an economic expansion. On Friday, that curve reached its steepest in more than five years at 196 basis points.

The U.S. 2-year to 10-year curve, on the other hand, has flattened dramatically this year and is close to inverting, where the longer maturity would yield less than the shorter.

Typically, yield curves slope upward as investors demand a higher return on longer-term debt as it carries greater risk because of the higher probability of inflation or default. A steepening curve typically signals expectations of stronger economic activity, higher inflation, and higher interest rates. A flattening curve suggests investors have lost confidence in the economy’s growth outlook.

Inversions are considered a harbinger of eventual recession. But the signal right now is not clear.

Eurozone: The British government could provide another multi-billion-pound package to help shield households from a further jump in energy bills later this year after its latest budget was criticised for not going far enough, the Sunday Times reported.

Finance minister Rishi Sunak announced a package of state-backed loans to energy providers and a rebate on local taxes in February to help soften the blow from a 54% hike in energy prices that comes into force in April.

For the average household, prices will rise to 1,971 pounds ($2,600) a year in April, the same month that taxes rise, but with global gas prices continuing to surge, analysts have said that the regulatory price cap could increase by another 30%.

The Sunday Times said the offices of Prime Minister Boris Johnson and Sunak had signalled that the state would step in to cover up to half of any increase in energy costs.

Top Economic Releases Today:

  1. JAPAN Jobs/applications ratio (Feb) today at 19:30 this time estimated 1.20, previously which was 1.20. 
  2. AUSTRALIA Retail Sales (MoM) (Feb) today at 20:30 this time estimated 1.0%, previously which was 1.8%.
  3. U.S. Goods Trade Balance (Feb) today at 08:30 previously which was -107.57B.
  4. U.S. Retail Inventories Ex Auto (Feb) today at 08:30 previously which was 1.8%.
  5. JAPAN Unemployment Rate (Feb) today at 19:30 this time estimated 2.8%, previously which was 2.8%.

TECHNICAL SUMMARY

GBP/USD

TRADE SUGGESTION- BUY AT 1.3156, TAKE PROFIT AT 1.3193 AND STOP LOSS AT 1.3122

EUR/USD

TRADE SUGGESTION- SELL AT 1.0947, TAKE PROFIT AT 1.0929 AND STOP LOSS AT 1.0977

USD/JPY

TRADE SUGGESTION- BUY AT 123.604, TAKE PROFIT AT 123.689 AND STOP LOSS AT 123.563

USD/CHF

TRADE SUGGESTION- BUY AT 0.9346, TAKE PROFIT AT 0.9362 AND STOP LOSS AT 0.9333

EURO STOXX 50

TRADE SUGGESTION- BUY AT 3820.00 TAKE PROFIT AT 3861.00 AND STOP LOSS AT 3777.00

WTI CRUDE OIL

TRADE SUGGESTION- SELL AT 108.68 TAKE PROFIT AT 104.67 AND STOP LOSS AT 110.24

GOLD

TRADE SUGGESTION- SELL AT 1933.23, TAKE PROFIT AT 1917.05 AND STOP AT 1947.52

ETHEREUM

TRADE SUGGESTION- BUY AT 3305.57 TAKE PROFIT AT 3395.14 AND STOP AT 3260.16

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