Weekly Global Markets Technical Analysis Report – 27 June 2021

Weekly Global Markets Technical Analysis Report – 27 June 2021

Manufacturing Purchasing Managers Index (PMI), U.K.

    WHEN:                                               WHAT IT HAD INFLUENCED:

23rd JUNE 2021                                        GBP and its subsequent pairs

WHAT HAPPENED: The Manufacturing Purchasing Managers’ Index (PMI) measures the activity level of purchasing managers in the manufacturing sector. A reading above 50 indicates expansion in the sector; below 50 indicates contraction.

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

     New Home Sales, U.S.

     WHEN:                                              WHAT IT HAD INFLUENCED:

     23rd JUNE 2021                                        USD and its subsequent pairs

WHAT HAPPENED: New Home Sales measures the annualized number of new single-family homes that were sold during the previous month. This report tends to have more impact when it’s released ahead of Existing Home Sales because the reports are tightly correlated. 

USDJPY is trading in the uptrend, further upside can be seen in the coming days.

Services PMI (Jun), JAPAN  

WHEN:                                              WHAT IT HAD INFLUENCED:

22nd JUNE 2021                                        JPY and its subsequent pairs 

WHAT HAPPENED: The survey covers transport & communication, financial intermediation, business services, personal services, computing & IT and hotels & restaurants. Each response received is weighted according to the size of the company to which the questionnaire refers & the contribution to total service sector output accounted for by the sub-sector to which that company belongs.

USDJPY is trading in the uptrend, further upside can be seen in the coming days.

Gold Sees First Forgettable Weekly Gain Since Losing $1,900 Perch

WHAT IT HAD INFLUENCED:

GOLD 

WHAT HAPPENED: Gold clinched on Friday its first weekly gain in four and since its unceremonious fall from $1,900 levels. But the difference was hardly something for longs in the yellow metal to crow about.

Front-month gold on New York’s Comex settled at $1,777.80, up just $1.10 or 0.1% on the day. The gain on the week was slightly less anaemic, at $8.80 or 0.5%.

It was a woeful previous three weeks for gold longs who watched miserably as the benchmark futures contract in gold cascaded from five-month highs of just over $1,919 to a seven-week low of just above 1,761 at one point. That was a loss of almost $160 or more than 8%.

In Friday’s trade, the spot price of gold hovered at $1,779 late afternoon in New York. Traders and fund managers sometimes decide on the direction for gold by looking at the spot price — which reflects bullion for prompt delivery — instead of futures.

GOLD is currently consolidating in a range. The future trend might be clear if it breaks the range on either side.

Oil Jumps Again, Testing Consumers’ Patience; Saudi Minister Mutters ‘Inflation’ 

WHAT IT HAD INFLUENCED:

CRUDE OIL

WHAT HAPPENED: 

Crude prices jumped another 3% for the week as market bulls tested the patience of consumers even as the Saudi Oil Minister, who heads OPEC+, muttered concerns about global inflation. 

New York-traded West Texas Intermediate crude, the benchmark for U.S. oil, soared to as high as $74.25 per barrel, a peak not seen since 2018, before settling at $74.05. While the rise on the day was just 75 cents or 1%, WTI gained 3% for the week, bringing consolidated gains over the past five weeks to 17%. For the year, WTI shows an uptick of 52%.

London-traded Brent, the global benchmark for oil, also hit its highest since 2018, at $76.20 per barrel, before finishing the session at $76.18, up 62 cents or 0.8%. Brent rose 3.6% gain on the week, bringing cumulative gains over the past five weeks to 15%. For the year, it is up 47%.

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

Ethereum’s hash rate crash by 20% following China’s crypto mining crackdown

WHAT IT HAD INFLUENCED:

ETHEREUM

WHAT HAPPENED: While several Bitcoin miners have been badly hit by China’s decision to crackdown on mining operations, Ethereum is also feeling the heat. The total hash rate of the Ethereum network has witnessed a sharp decline over the past month, recording a particularly steeper drop in the past two weeks.

Data on Etherscan.io reveals that the network’s hash rate was on an upward trajectory since January 2020. It eventually reached a peak value of around 643 terahashes per second (TH/s) on May 20. However, the network’s hash rate began dropping in late May, coinciding with a comment from the Chinese State Council meeting about cracking down on “Bitcoin trading and mining activities.”

Ethereum’s hash rate remained relatively constant for about two weeks after China’s announcement in late May. By June 9, it began to drop sharply following an order from the Xinjiang province asking officials in the Zhundong economic development zone to immediately shut down all “virtual currency mining farms.” This was followed by similar crackdowns from the Sichuan and Qinghai provinces in the weeks to come.

ETHEREUM 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

     GDP (YoY) (Q1), U.K.

 WHEN:                                                              WHAT IT INFLUENCES:

 30th JUNE 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.

      Initial Jobless Claims, U.S.

WHEN:                                                                WHAT IT INFLUENCES:

1st JULY 2021                                                       USD and its subsequent 

                                                                              pairs

WHAT’S HAPPENING: 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.

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

    Tankan Large Manufacturers Index (Q2), JAPAN

WHEN:                                                               WHAT IT INFLUENCES:

30th JUNE 2021                                                 JPY and its subsequent 

                                                                             pairs

WHAT’S HAPPENING: The Tankan Large Manufacturing Index rates the relative level of general business conditions in the manufacturing sector. On the index, a level above zero indicates improving conditions; below indicates worsening conditions. The data is compiled from a survey of about 1,200 large manufacturers. 

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

GDP (MoM) (Apr), CANADA

WHEN:                                                                WHAT IT INFLUENCES:

30th JUNE 2021                                                  CAD 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. Canada releases fresh GDP data on a monthly basis. 

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.

Unemployment Change (Jun), GERMANY

WHEN:                                                               WHAT IT INFLUENCES:

30th JUNE 2021                                                 EUR and its subsequent 

                                                                             pairs

WHAT’S HAPPENING: German Unemployment Change measures the change in the number of unemployed people during the previous month.

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

EQUITIES IN THE COMING WEEK

1. Virtusa (VRTU) to announce its Quarterly Results on 28th JUNE 2021, EPS estimated to 0.71 per share while revenue estimated 326M. 

2. Micron (MU) to announce its Quarterly Results on 30th JUNE 2021, EPS estimated to 1.7 per share while revenue estimated 7.19 B.

3. Schnitzer (SCHN) to announce its Quarterly Results on 30th JUNE 2021, EPS estimated to 2.08 per share while revenue estimated 759.07M.

4. Walgreens Boots (WBA) to announce its Quarterly Results on 1st JULY 2021, EPS estimated to 1.15 per share while revenue estimated 33.49B.

5. Micro Focus (MCRO) to announce its Quarterly Results on 1st JULY 2021, EPS estimated to 0.77 per share while revenue estimated 1,363M.

TOP COMMODITIES IN THE COMING WEEK

GOLD

Technical Analysis

GOLD is currently consolidating in a range. The future trend might be clear if it breaks the range on either side. 

SILVER

Technical Analysis

SILVER is currently consolidating in a range. The future trend might be clear if it breaks the range on either side. 

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.

EURJPY

Technical Analysis

EURJPY was trading in the up channel; the downside can be seen if it is not able to sustain itself again in the channel.

TOP INDEX IN THE COMING WEEK

DJ EURO STOXX 50

Technical Analysis

DJ EURO STOXX 50 is currently in the upward channel. Further upside can be seen in the coming week.

NASDAQ 100

Technical Analysis

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

S&P 500

Technical Analysis

S&P 500 is currently in an up channel. Further upside can be seen in the coming week.

DATA WATCH

Technical Analysis

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