Technical Analysis with Candlestick Charts – 22 April 2022

Technical Analysis with Candlestick Charts – 22 April 2022

Technical Analysis

Fed Chair Powell – 50 Basis Point Hike for May

Asia Pacific stocks were down on Friday morning. The Shanghai Composite is up 0.52% at 3,095.85. Overall, the Singapore MSCI is down 1.29% at 313.20. Over in Hong Kong, the Hang Seng Index is down 0.17% at 20,623. In Japan, the Nikkei 225 is down 1.56% at 27,090.00, while the Topix index is down 1.27% at 1903.00. South Korea’s Kospi is down 0.86% at 2704.71. Australia S&P/ASX 200 down 1.57% at 7473.30.

Top News of the Day:

Federal Reserve Chairman Jerome Powell said Thursday that a 50 basis-point rate hike was on the table for the May meeting as the central bank aims to step up the pace of monetary policy tightening to curb elevated inflation.  

The Fed chairman also backed the idea of the central bank hiking aggressively at the start of the tightening cycle, or front loading more than one 50 basis-point hike at future meetings.

Market Summary as per 21/04/2022:

European equities Thursday closing. The DAX futures contract in Germany traded up 0.98% at 14,502.41, CAC 40 futures up 1.36% at 6715.11 and the UK 100 futures contract in the U.K. down 0.02% at 7,627.94.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 1.05% at 34792.77. The S&P 500 down 1.48% at 4393.67 and the Nasdaq 100 down 1.99% at 13720.45, NYSE closes down 1.56% at 16499.33.

Top Market News Today:

In the Forex market, GBPUSD down 0.25% at 1.2997. The USDJPY down 0.32% at 127.892. The USDCHF flat at 0.9532. EURUSD up 0.12% at 1.0844, EUR/GBP up 0.39% at 0.8344. The USD/CNY up 0.28% at 6.468 at the time of writing.

In the Commodity market U.S. Gold futures up 0.10% at $1,953.29. Elsewhere, Silver futures down 0.49% at $24.521 per ounce, Platinum up 0.10% at $966.00 per ounce, and Palladium up 0.93% at $2448.50.

Crude Oil down on Friday; Brent crude oil down 1.74% at $106.80 per barrel while U.S. West Texas Intermediate (CLc1) down 1.39% at $102.183.

In the Cryptocurrency Markets, Bitcoin at 40702.49 up 0.57%, Ethereum up 0.95% at 3013.54, Litecoin at 107.74 up 0.89%, at the time of writing.

Top Market Segment to Watch Out Today:

SAP: German business software group SAP reported on Friday a first-quarter revenue growth of 11%, beating estimates on a boost from its cloud business, but flagged a revenue hit of 300 million euros ($325.26 million) because of its exit from Russia.

Earlier this week, the company said it plans to exit Russia completely in response to Moscow’s invasion of Ukraine.

Economic News:

US: U.S. Treasury Secretary Janet Yellen and a top White House adviser called for major reforms at the World Bank on Thursday, saying the seven-decade-old multilateral development bank was not built to address multiple and overlapping global crises.

Yellen told reporters that both the World Bank and the International Monetary Fund were not designed to handle the multiple global crises they now face, including fallout from Russia’s war in Ukraine and the COVID-19 pandemic, and they lack the resources to tackle climate change.

Yellen said the IMF, which has about $1 trillion in total lending resources, was intended to help individual countries deal with isolated crises, while the World Bank was created to finance development projects in countries that lacked access to capital markets.

Eurozone: British retail sales dropped in March by much more than expected as the surge in inflation hurt consumer demand, according to data published on Friday that sent a fresh warning sign for the economic outlook.

Retail sales volumes slid by 1.4% in March from February, a worse reading than any economist forecast in a Reuters poll that had pointed to a 0.3% monthly drop, the Office for National Statistics said.

Food and petrol sales fell sharply on the month with the ONS citing rising prices as possible explanations for the falls. A survey published earlier on Friday showed consumer confidence close to its lowest level since records began nearly 50 years ago.

Bank of England Governor Andrew Bailey said on Thursday that the British central bank was walking a tight line between tackling inflation and avoiding recession.

Top Economic Releases Today:

  1. U.K. Retail Sales (MoM) (Mar) today at 2:00 this time estimated -0.3%, previously which was -0.5%. 
  2. GERMANY Manufacturing PMI (Apr) today at 4:30 this time estimated 59.0, previously which was 55.2.
  3. CANADA Core Retail Sales (MoM) (Feb) today at 8:30 this time estimated 0.1%, previously which was 2.5%.
  4. CANADA Manufacturing Sales (MoM) today at 8:30 previously which was 4.2%.
  5. EURO ZONE Manufacturing PMI (Apr) today at 4:00 this time estimated 54.70, previously which was 56.5.

TECHNICAL SUMMARY

GBPUSD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 1.2909, TAKE PROFIT AT 1.2905 AND STOP LOSS AT 1.2922

EURUSD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 1.0811, TAKE PROFIT AT 1.0781 AND STOP LOSS AT 1.0845

USDJPY

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 127.938, TAKE PROFIT AT 128.693 AND STOP LOSS AT 127.688

USDCHF

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 0.9543, TAKE PROFIT AT 0.9549 AND STOP LOSS AT 0.9542

NIKKEI 225

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 27209.00 TAKE PROFIT AT 27382.00 AND STOP LOSS AT 26935.00

WTI CRUDE OIL

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 103.06 TAKE PROFIT AT 99.71 AND STOP LOSS AT 104.76

GOLD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 1950.04, TAKE PROFIT AT 1958.26 AND STOP AT 1941.89

ETHEREUM

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 3000.00 TAKE PROFIT AT 2935.00 AND STOP AT 3073.34

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