Weekly Global Markets Technical Analysis Report – 12 July 2021

Technical Analysis of the Financial Markets

Weekly Global Markets Technical Analysis Report – 12 July 2021

Construction PMI (Jun), U.K.

    WHEN:                                               WHAT IT HAD INFLUENCED:

6th JULY 2021                                           GBP and its subsequent pairs

WHAT HAPPENED: The Chartered Institute of Purchasing and Supply (CIPS) Construction Purchasing Manager’s Index (PMI) measures the activity level of purchasing managers in the construction industry. A reading above 50 indicates expansion in the construction industry; a reading below indicates contraction.

GBPCAD was trading in the parallel channel, further upside can be seen in the coming days.

     Initial Jobless Claims, U.S.

     WHEN:                                              WHAT IT HAD INFLUENCED:

     8th JULY 2021                                           USD and its subsequent pairs

WHAT HAPPENED: Initial Jobless Claims measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week.

USDMXN is trading in the parallel channel, further upside can be seen in the coming days.

Employment Change (Jun), CANADA  

WHEN:                                              WHAT IT HAD INFLUENCED:

9th JULY 2021                                           CAD and its subsequent pairs 

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

USDMXN is trading in the down channel, further downside can be seen in the coming days.

Gold Has 3rd Weekly Gain With $1,800 Return

WHAT IT HAD INFLUENCED:

GOLD 

WHAT HAPPENED: Gold posted a third straight weekly gain on Friday, returning to crucial $1,800 support. But outlook for the yellow metal’s fans remained muddy, with no certainty on how long it will take for the much-touted U.S. inflation to accelerate its gains.

Front-month gold futures on New York’s Comex settled at $1,810.60, up $10.40, or 1.5% on the day.

The benchmark gold futures have gained around $40, or 2.3%, since its last negative weekly close four weeks ago, when it also tumbled to a two-month low of $1,761.20.

Gold’s rise on Friday was fuelled by a weaker dollar. Both the U.S. currency and yields work in contrary mode to the precious metal.

GOLD is trading in the parallel channel; further upside can be seen if it breaks the channel upside and vice-versa.

Oil Has First Weekly Loss in Seven as OPEC Worry Tempers Bull Market 

WHAT IT HAD INFLUENCED:

CRUDE OIL

WHAT HAPPENED: 

Crude prices posted their first weekly loss since mid-May as worries about trouble within OPEC tempered the bull market for oil.

The loss was a tiny red bleep after six straight weeks of gains and looked small enough — just 6% on the week — for longs in the market to shrug off. 

But the broader troubles within the 13-member Saudi-led Organization of the Petroleum Exporting Countries and its 10 oil producing allies led by Russia were large enough to remain on their minds.

New York-traded West Texas Intermediate crude, the benchmark for U.S. oil, settled Friday’s trade up $1.62, or 2.2%, at $74.56 a barrel. 

London-traded Brent, the global benchmark for oil, settled Friday’s trade up $1.43, or 1.9%, at $75.55. For the week though, Brent lost 0.8%.

WTI CRUDE OIL is currently in the upward channel. Further upside can be seen in the coming week.

     UK places crypto advertisements under “Red Alert”

WHAT IT HAD INFLUENCED:

BITCOIN

WHAT HAPPENED: Moving forward, the United Kingdom Advertising Standards Authority (ASA) will scrutinize all marketing related to cryptocurrencies, especially on social media.

Amid the U.K.’s seemingly harder stance on crypto regulations stance on the cryptocurrency business, authorities are planning to launch an effort this month to hunt and shut down deceptive crypto adverts.

ASA, the U.K. advertising industry’s watchdog, is spearheading efforts to regulate cryptocurrency ads. According to a report by the Financial Times, Miles Lockwood, ASA’s director of complaints, said the authority would particularly target irresponsible crypto ads being spread online and on social media platforms. He added:

Most crypto investments fall outside the scope of the UK’s strict rules for promoting traditional financial products, which are supervised by the Financial Conduct Authority. ASA is increasing its capacity to track bogus crypto ads using Artificial Intelligence (AI) and scraping.

Defaulting companies will be issued warnings and may be required to add disclaimers to their advertisements. Already a Bitcoin poster sponsored by cryptocurrency exchange Luno was taken down by ASA in May.

BTCUSD is trading in the parallel channel, further upside can be seen if it breaks the channel upside and vice-versa.

5 KEY EVENTS TO WATCH OUT

     CPI (YoY) (Jun), U.K.

 WHEN:                                                              WHAT IT INFLUENCES:

 14th JULY 2021                                                   GBP and its subsequent 

                                                                             pairs

WHAT’S HAPPENING: The Consumer Price Index (CPI) measures the change in the price of goods and services 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 GBP, whereas a lower-than-expected reading should be taken as negative/bearish for the GBP.

      Core Retail Sales (MoM) (Jun), U.S.

WHEN:                                                                WHAT IT INFLUENCES:

16th JULY 2021                                                       USD and its subsequent 

                                                                              pairs

WHAT’S HAPPENING: Core Retail Sales measures the change in the total value of sales at the retail level in the U.S., excluding automobiles. It is an important indicator of consumer spending and is also considered as a pace indicator for the U.S. economy.

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.

    BoC Interest Rate Decision, CANADA

WHEN:                                                               WHAT IT INFLUENCES:

14th JULY 2021                                                    CAD and its subsequent 

                                                                             pairs

WHAT’S HAPPENING: Bank of Canada (BOC) governing council members come to a consensus on where to set the rate. Traders watch interest rate changes closely as short-term interest rates are the primary factor in currency valuation. 

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.

Employment Change (Jun), AUSTRALIA 

WHEN:                                                                WHAT IT INFLUENCES:

14th JULY 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.

GDP (YoY) (Q2), CHINA

WHEN:                                                               WHAT IT INFLUENCES:

14th JULY 2021                                                    CNY 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 CNY, whereas a lower-than-expected reading should be taken as negative/bearish for the CNY.

EQUITIES IN THE COMING WEEK

1. JPMorgan (JPM) to announce its Quarterly Results on 13th JULY 2021, EPS estimated to 3.09 per share while revenue estimated 29.95B. 

2. PepsiCo (PEP) to announce its Quarterly Results on 13th JULY 2021, EPS estimated to 1.52 per share while revenue estimated 17.94B.

3. Goldman Sachs (GS) to announce its Quarterly Results on 13th JULY 2021, EPS estimated to 9.41 per share while revenue estimated 11.89B.

4. Bank of America (BAC) to announce its Quarterly Results on 14th JULY 2021, EPS estimated to 0.7737 per share while revenue estimated 21.91B.

5. Morgan Stanley (MS) to announce its Quarterly Results on 15th JULY 2021, EPS estimated to 1.66 per share while revenue estimated 13.98B.

TOP COMMODITIES IN THE COMING WEEK

GOLD

Technical Analysis

GOLD is trading in the parallel channel; further upside can be seen if it breaks the channel upside and vice-versa. 

SILVER

Technical Analysis

SILVER is trading in the parallel channel; further upside can be seen if it breaks the channel upside and vice-versa. 

WTI CRUDE OIL

Technical Analysis

WTI CRUDE OIL is currently in the upward channel. Further upside can be seen in the coming week.

TOP CRYPTO IN THE COMING WEEK

BTCUSD

Technical Analysis

BTCUSD is trading in the parallel channel, further upside can be seen if it breaks the channel upside and vice-versa.

ETHEREUM

Technical Analysis

ETHEREUM is trading in the parallel channel, further upside can be seen if it breaks the channel upside and vice-versa.

    TOP CURRENCY IN THE COMING WEEK

EURUSD 

Technical Analysis

EURUSD is trading in the parallel channel, further upside can be seen if it breaks the channel upside and vice-versa.

GBPUSD

Technical Analysis

GBPUSD is trading in the parallel channel, further upside can be seen if it breaks the channel upside and vice-versa.

GBPJPY

Technical Analysis

GBPJPY is trading in the parallel channel, further upside can be seen if it breaks the channel upside and vice-versa.

TOP INDEX IN THE COMING WEEK

FTSE 100

Technical Analysis

FTSE 100 is currently in the up channel. Further upside can be seen in the coming week.

HANG SENG

Technical Analysis

HANG SENG is currently in the down channel. Further downside can be seen in the coming week.

NASDAQ 100

Technical Analysis

NASDAQ 100 is currently in an up channel. Further upside can be seen in the coming week.

DATA WATCH

Technical Analysis

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