Weekly Technical Analysis with Candlestick Charts – 07 November 2021

Technical Analysis

Weekly Technical Analysis with Candlestick Charts – 07 November 2021

WEEKLY SNAPSHOT

    Services PMI (Oct), U.K.

    WHEN:                                               WHAT IT HAD INFLUENCED:

3rd NOVEMBER 2021                              GBP and its subsequent pairs

WHAT HAPPENED: 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.

GBPJPY is currently in the downward channel. Further downside can be seen in the coming week.

     Initial Jobless Claims, U.S.

     WHEN:                                              WHAT IT HAD INFLUENCED:

     4th NOVEMBER 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.

USDCHF is currently in the downward channel. Further downside can be seen in the coming week.

RBA Interest Rate Decision (Nov), AUSTRALIA

WHEN:                                              WHAT IT HAD INFLUENCED:

1st NOVEMBER 2021                             AUD and its subsequent pairs 

WHAT HAPPENED: Reserve Bank of Australia (RBA) board 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.

AUDUSD is currently in the downward channel. Further downside can be seen in the coming week.

Gold futures post highest finish since early September

WHAT IT HAD INFLUENCED:

GOLD 

WHAT HAPPENED: Gold futures on Friday marked their highest settlement since early September as U.S. Treasury yields declined in the wake of a better-than-expected rise in October U.S. nonfarm payrolls. The strong jobs report “does not change the message that the [Federal Reserve] sent this week that they will not commit to a rate hike in 2022, and this is why real yields are finishing the week lower,” said Edward Moya, senior market analyst Oanda. A fall in Treasury yields lowers the opportunity cost of holding nonyielding assets and that supported prices for gold. “Risk appetite is too strong for gold to have a sustained move above $1,800, but it should see that level as strong support going forward,” said Moya. 

December gold rose $23.30, or 1.3%, to settle at $1,816.80 an ounce, the highest most-active contract finish since Sept. 3.

GOLD is trading in the up channel; further upside can be seen if not able to break out the channel.

Oil Ends Week Lower, But Reclaims $80 on Bets Supplies to Remain Tight

WHAT IT HAD INFLUENCED:

CRUDE OIL

WHAT HAPPENED: 

Crude settled higher Friday, as bullish bets resumed amid expectations major oil producing nations will continue to allow surging oil prices to go unchecked after voting to keep production steady earlier this week.

On the New York Mercantile Exchange crude futures for January delivery gained 2.46 to settle at $81.27 a barrel, while on London’s Intercontinental Exchange (NYSE:ICE), Brent added $2,2 to settle at $82.74 a barrel.

Expectations the U.S. could tap its strategic petroleum reverses to curb the spike in energy prices – following OPEC and its allies’ decision to keep production – were quickly dismissed, reinforcing expectations that oil supplies will remain tight.

“In our opinion, however, the idea that this would prompt the US – as some have speculated – to release some of its strategic oil reserves is not very likely, and will ultimately be up to the US president to decide,” Commerzbank (DE:CBKG) said in a note.

OPEC and its allies including Russia on Thursday pledged to stick with plans to gradually raise oil production by 400,000 barrels a day next month.

WTI CRUDE OIL is trading in the down channel; downside will be seen in the coming days.

Ethereum records first consecutive week of deflationary issuance

WHAT IT HAD INFLUENCED:

ETHEREUM

WHAT HAPPENED: Ethereum has seen seven consecutive days of deflationary issuance amid its impressive price rally alongside an increase in demand.

The London hard fork laid the foundation for Ethereum’s negative supply through the introduction of a burning mechanism. In the past seven days, more Ethereum has been destroyed than has been created from mining.

Over $3 billion worth of Ethereum has been burned since EIP-1559 was implemented. According to data from Ultrasound Money, a total of 15,000 ETH currently valued at about $60 million is being burnt daily. Meanwhile, analytics from WatchTheBurn revealed that the difference between the burn rate and net issuance is minus 8,000 ETH, as of press time.

“Due to the current PoW issuance (4.5%), a deflationary ETH was not something that was expected to happen until The Merge,” said Anthony Sassano, co-founder of EthHub on The Daily Gwei.

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

5 KEY EVENTS TO WATCH OUT

     GDP (YoY) (Q3), U.K.

 WHEN:                                                              WHAT IT INFLUENCES:

 11th NOVEMBER 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.

      Core CPI (MoM) (Oct), U.S.

WHEN:                                                                WHAT IT INFLUENCES:

10th NOVEMBER 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.

    CPI (MoM) (Oct), GERMANY

WHEN:                                                               WHAT IT INFLUENCES:

10th NOVEMBER 2021                                          EUR and its subsequent 

                                                                             Pairs

WHAT’S HAPPENING: The German Consumer Price Index (CPI) measures the changes in the price of goods and services purchased by consumers.

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.

Industrial Production (MoM) (Sep), JAPAN

WHEN:                                                                WHAT IT INFLUENCES:

11th OCTOBER 2021                                          JPY and its subsequent 

                                                                             Pairs 

WHAT’S HAPPENING:  Industrial Production measures the change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities.

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.

Employment Change (Oct), AUSTRALIA 

WHEN:                                                               WHAT IT INFLUENCES:

10th NOVEMBER 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.

EQUITIES IN THE COMING WEEK

1. SoftBank Group (SFTBY) to announce its Quarterly Results on 8th NOVEMBER 2021, EPS estimated to 0.5211 per share while revenue estimated 12.98B. 

2. Walt Disney (DIS) to announce its Quarterly Results on 10th NOVEMBER 2021, EPS estimated to 0.5166 per share while revenue estimated 18.82B.

3. DoorDash (DASH) to announce its Quarterly Results on 9th NOVEMBER 2021, EPS estimated to -0.0988 per share while revenue estimated 1.17B.

4. BioNTech (BNTX) to announce its Quarterly Results on 9th NOVEMBER 2021, EPS estimated to 10.39 per share while revenue estimated 5.02B.

5. Walt Disney (DIS) to announce its Quarterly Results on 10th NOVEMBER 2021, EPS estimated to 0.5166 per share while revenue estimated 18.82B.

TOP COMMODITIES IN THE COMING WEEK

GOLD Technical Analysis

Technical Analysis

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

SILVER Technical Analysis

Technical Analysis

SILVER is trading in the down channel; downside will be seen in the coming days.

WTI CRUDE OIL Technical Analysis

Technical Analysis

WTI CRUDE OIL is trading in the down channel; downside will be seen in the coming days.

TOP CRYPTO IN THE COMING WEEK

BTCUSD Technical Analysis

Technical Analysis

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

ETHEREUM Technical Analysis

Technical Analysis

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

 TOP CURRENCY IN THE COMING WEEK

EURUSD  Technical Analysis

Technical Analysis

EURUSD is trading in the down channel; further downside can be seen in the coming days.

GBPUSD Technical Analysis

Technical Analysis

GBPUSD is trading in the down channel; further downside can be seen in the coming days.

USDJPY Technical Analysis

Technical Analysis

USDCHF is trading in the down channel; further downside will be seen in the coming days.

TOP INDEX IN THE COMING WEEK

EURO STOXX 50 Technical Analysis

Technical Analysis

EURO STOXX 50 is trading in the up channel; further upside can be seen if not able to break out the channel.

DAX 30 Technical Analysis

Technical Analysis

DAX 30 is trading in the up channel; further upside can be seen if not able to break out the channel.

DATA WATCH

Technical Analysis

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