Weekly Global Markets Technical Analysis Report – 11 April 2021

Weekly Global Markets Technical Analysis Report – 11 April 2021

    Household Spending (YoY) (Feb), JAPAN

 WHEN:                                                                WHAT IT INFLUENCES:

 5th APRIL 2021                                                         JPY and its subsequent 

                                                                              pairs

WHAT’S HAPPENING: Household Spending measures the change in the inflation-adjusted value of all expenditures by consumers.

GBPJPY is trading in a down channel further downside can be seen in the coming days.

     ISM Non-Manufacturing PMI (Mar), US

WHEN:                                                                 WHAT IT INFLUENCES:

5th APRIL 2021                                                   USD and its subsequent 

                                                                             pairs

WHAT’S HAPPENING: The Institute of Supply Management (ISM) Non-Manufacturing Purchasing Managers’ Index (PMI) (also known as the ISM Services PMI) report on Business, a composite index is calculated as an indicator of the overall economic condition for the non-manufacturing sector. The NMI is a composite index based on the diffusion indexes for four of the indicators with equal weights: Business Activity (seasonally adjusted), New Orders (seasonally adjusted), Employment (seasonally adjusted) and Supplier Deliveries.

USDCHF is currently bearish further downside can be seen in the coming days.

    Services PMI (Mar), UK

WHEN:                                                               WHAT IT INFLUENCES:

7th APRIL 2021                                                  GBP and its subsequent 

                                                                             pairs

WHAT’S HAPPENING: The Services Purchasing Managers’ Index (PMI) measures the activity level of purchasing managers in the services sector. A reading above 50 indicates expansion in the sector; a reading below 50 indicates contraction. Traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.

GBPJPY is currently bearish further downside can be seen in the coming days.

Gold up 1% on Week

WHAT IT HAD INFLUENCED:

GOLD 

WHAT HAPPENED

Gold prices slid on Friday but still ended the week up 1% as the yellow metal emerged partially victorious from its fencing duels with U.S. bond yields and the dollar, which were sluggish most of the week from mixed readings on inflation.

Benchmark gold futures on New York’s Comex settled down $13.60, or 0.8%, at $1,744.80 an ounce. For the week, however, it rose 1.05%.

The spot price of gold was down $12.67, or 0.7%, at $1,742.95 by 3:00 PM ET (19:00 GMT). For the week, spot gold was up 0.8%. Moves in spot gold are integral to fund managers, who sometimes rely more on it than futures for direction.

Both spot and gold futures broke above $1,750 on Thursday, smashing the key resistance the first time in six weeks, as bond yields and the dollar retreated from their recent highs. 

Gold had formed a Double Bottom Pattern. After the breakout, there can be upside up to the level of 1846.

Oil edges lower on mixed supply and demand outlook

WHAT IT HAD INFLUENCED:

BRENT & WTI CRUDE OIL

WHAT HAPPENED: Oil prices edged lower in rangebound trade on Friday on rising supplies from major producers and concerns over a mixed picture on the COVID-19 pandemic’s impact on fuel demand.

Brent crude futures for June fell 16 cents, or 0.3%, to $63.04 a barrel by 1:38 p.m. EDT (1738 GMT). U.S. West Texas Intermediate (WTI) crude for May was at $59.38, down 22 cents.

Both contracts are on track for a 2%-3% drop this week but still far from a low of $60.47 hit two weeks ago.

Downward pressure has been exerted by the decision of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, to increase supplies by 2 million barrels per day between May and July.

WTI CRUDE OIL was trading in an up channel, downside can be seen if it breaks 57.37 level.

Online Game Operator The9 Plans to Purchase 2,000 Bitcoin Miners for Over $6 Million

WHAT IT HAD INFLUENCED:

BTCUSD

WHAT HAPPENED: The Shanghai-based online game operator, The9 Limited, has revealed the company is planning to acquire 2,000 Canaan Avalon miners for over $6 million in a stock deal. The9’s binding memorandum of understanding (MOU) explains that the new units will give the company 0.1 exhaust of bitcoin hash power.

On April 9, the publicly-listed gaming and internet company The9 Limited (Nasdaq: NCTY) revealed the firm’s intentions to acquire 2,000 bitcoin (BTC) miners. The new miners will give the company a total hash rate of approximately 100 PH/s or 0.1 exhaust (EH/s) of processing power.

According to the announcement, The9 entered into a legally binding memorandum of understanding (MOU) with an “unrelated bitcoin mining machine owner.” The machines will be exchanged for Class A ordinary shares.

The9 said that the firm will issue approximately 8,127,390 shares based on the share price of around $24.81. But during the next six months, the number of shares could be reassessed.

Filings with the SEC show the cost to purchase one Coinbase Global share at a price that would shoot its value to around $67.6 billion. The firm has $1 billion in cash reserves, which expects to protect it from bitcoin’s notorious price fluctuations that impact everything from its revenues to earnings.

BTCUSD is trading in an upward trend. Further upside can be seen in the coming days.          

5 KEY EVENTS TO WATCH OUT

     Retail Sales (MoM) (Feb), EURO ZONE

 WHEN:                                                                WHAT IT INFLUENCES:

 12th APRIL 2021                                                       EUR and its subsequent 

                                                                              pairs

WHAT’S HAPPENING: Retail Sales measure the change in the total value of inflation-adjusted sales at the retail level. It is the foremost indicator of consumer spending, which accounts for the majority of overall economic activity.

A higher-than-expected reading ought to be taken as positive/bullish for the EUR, whereas a lower-than-expected reading should be taken as negative/bearish for the EUR.

     Core CPI (MoM) (Mar), U.S.

WHEN:                                                                 WHAT IT INFLUENCES:

13th APRIL 2021                                                   USD and its subsequent 

                                                                             pairs

WHAT’S HAPPENING: The Core Consumer Price Index (CPI) measures the changes in the price of goods and services, excluding food and energy. The CPI measures price change from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.

A higher-than-expected reading ought to be taken as positive/bullish for the USD, whereas a lower-than-expected reading should be taken as negative/bearish for the USD.

    Gross Domestic Product (GDP) MoM, U.K.

WHEN:                                                               WHAT IT INFLUENCES:

13th APRIL 2021                                                  GBP and its subsequent 

                                                                             pairs

WHAT’S HAPPENING: Gross Domestic Product (GDP) measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy’s health.

A higher-than-expected reading ought to be taken as positive/bullish for the GBP, whereas a lower-than-expected reading should be taken as negative/bearish for the GBP.

Employment Change (Mar), AUSTRALIA

WHEN:                                                                WHAT IT INFLUENCES:

14th APRIL 2021                                                  AUD and its subsequent 

                                                                             Pairs 

WHAT’S HAPPENING: Employment Change measures the change in the number of people employed. Job creation is an important indicator of consumer spending.

A higher-than-expected reading ought to be taken as positive/bullish for the AUD, whereas a lower-than-expected reading should be taken as negative/bearish for the AUD.

Manufacturing Sales (MoM) (Feb), CANADA

WHEN:                                                                 WHAT IT INFLUENCES:

15th APRIL 2021                                                    CAD and its subsequent 

                                                                             pairs

WHAT’S HAPPENING: Manufacturing Sales measures the change in the overall value of sales made at the manufacturing level.

A higher-than-expected reading ought to be taken as positive/bullish for the CAD, whereas a lower-than-expected reading should be taken as negative/bearish for the CAD.

EQUITIES IN THE COMING WEEK

1. JD Sports Fashion (JD) to announce its Quarterly Results on 13th April 2021, EPS estimated to 26.15 per share while revenue estimated 3.569M. 

2. JPMorgan (JPM) to announce its Quarterly Results on 14th April 2021, EPS estimated to 2.93 per share while revenue estimated 30.1B.

3. Wells Fargo &Co (WFC) to announce its Quarterly Results on 14th April 2021, EPS estimated to 0.654 per share while revenue estimated 17.36B.

4. Bank of America (BAC) to announce its Quarterly Results on 15th April 2021, EPS estimated to 0.6278 per share while revenue estimated 21.63B.

5. Honeywell (HON) to announce its Quarterly Results on 16th April 2021, EPS estimated to 1.79 per share while revenue estimated 8.06B.

TOP COMMODITIES IN THE COMING WEEK

GOLD

Global Markets

Gold had formed a Double Bottom Pattern. After the breakout, there can be upside up to the level of 1846.

SILVER

Global Markets

SILVER is trading in a down channel further downside will be seen if it breaks the 24.222 level. 

WTI CRUDE OIL

Global Markets

WTI CRUDE OIL was trading in an up channel, downside can be seen if it breaks 57.37 level.

TOP CRYPTO IN THE COMING WEEK

BTCUSD

Global Markets

BTCUSD is trading in an upward trend. Further upside can be seen in the coming days.  

ETHEREUM

Global Markets

ETHEREUM is trading in an upward channel. Further upside will be seen in the coming days. 

TOP CURRENCY IN THE COMING WEEK

EURJPY

Global Markets

EURJPY is trading in an uptrend, Further upside will be seen in the coming days.

GBPUSD

Global Markets

GBPUSD was in the down channel. The downside can be seen in the coming days. 

EURUSD

Global Markets

EURUSD is trading in a down channel, the downside can be seen in the coming days.

TOP INDEX IN THE COMING WEEK

S&P 500

Global Markets

S&P 500 is currently in the up channel. Further upside will be seen in the coming days. 

DJ EURO STOXX 50

Global Markets

DJ EURO STOXX 50 is currently in an uptrend. Further upside will be seen in the coming days.

DOW JONES

Global Markets

DOW JONES is in the up channel; further upside will be seen in the coming days.

DATA WATCH

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