Weekly Technical Analysis with Candlestick Charts – 23 January 2022

Weekly Technical Analysis with Candlestick Charts – 23 January 2022

WEEKLY SNAPSHOT

    Claimant Count Change (Dec), U.K.

    WHEN:                                               WHAT IT HAD INFLUENCED:

18th JANUARY 2022                                GBP and its subsequent pairs

WHAT HAPPENED: Claimant Count Change measures the change in the number of unemployed people in the U.K. during the reported month. A rising trend indicates weakness in the labor market, which has a trickle-down effect on consumer spending and economic growth.

GBPCAD is trading in the down channel. Further downside can be seen in the coming week.

     Building Permits (Dec), U.S.

     WHEN:                                              WHAT IT HAD INFLUENCED:

     19th JANUARY 2022                                USD and its subsequent pairs

WHAT HAPPENED: Building Permits measures the change in the number of new building permits issued by the government. Building permits are a key indicator of demand in the housing market. 

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

National Core CPI (YoY) (Dec), JAPAN

WHEN:                                            WHAT IT HAD INFLUENCED:

20th JANUARY 2022                              JPY and its subsequent pairs 

WHAT HAPPENED: The National Core Consumer Price Index (CPI) measures the change in the price of goods and services purchased by consumers, excluding fresh food.

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

Gold futures fall for the session, but post a second straight week gain

WHAT IT HAD INFLUENCED:

GOLD 

WHAT HAPPENED: Gold futures fell on Friday amid declines in most asset classes, but still tallied a gain for a second straight week after settling Wednesday at their highest in two months. 

“Not only has the tensions between Russia and the rest of the world undermined sentiment, but U.S. corporate earnings seem to have lost their ability to lift equities and highflying crude oil prices have corrected sharply.” February gold fell $10.80, or 0.6%, to settle at $1,831.80 an ounce. 

For the week, however, most-active gold futures rose 0.8%, up a second week in a row.

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

Oil slides on Friday, but climbs for 5th week on supply concerns

WHAT IT HAD INFLUENCED:

CRUDE OIL

WHAT HAPPENED: 

Oil prices slid for a second day in a row on Friday, pressured by an unexpected rise in U.S. crude and fuel inventories while investors took profits after the benchmarks touched seven-year highs earlier in the week.

However, both crude benchmarks rose for a fifth week in a row, gaining around 2% this week. Prices were up more than 10% so far this year on concerns over tightening supplies.

Brent futures fell 49 cents, or 0.6%, to settle at $87.89 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 41 cents, or 0.5%, to settle at $85.14.

Earlier in the week, both Brent and WTI rose to their highest levels since October 2014.

WTI CRUDE OIL is trading in the up channel. Further upside can be seen in the coming week.

Litecoin Falls 10% In Selloff

WHAT IT HAD INFLUENCED:

LITECOIN 

WHAT HAPPENED: 

Litecoin was trading at $111.300 by 00:07 (05:07 GMT) on the Saturday, down 10.17% on the day. It was the largest one-day percentage loss since January 21.

The move downwards pushed Litecoin’s market cap down to $7.870B, or 0.47% of the total cryptocurrency market cap. At its highest, Litecoin’s market cap was $25.609B.

Litecoin had traded in a range of $111.300 to $116.900 in the previous twenty-four hours.

Over the past seven days, Litecoin has seen a drop in value, as it lost 23.31%. The volume of Litecoin traded in the twenty-four hours to time of writing was $1.610B or 1.32% of the total volume of all cryptocurrencies. It has traded in a range of $110.7000 to $153.5000 in the past 7 days.

At its current price, Litecoin is still down 73.50% from its all-time high of $420.00 set on December 12, 2017.

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

5 KEY EVENTS TO WATCH OUT

     Manufacturing PMI, U.K.

 WHEN:                                                              WHAT IT INFLUENCES:

 24th JANUARY 2022                                        GBP and its subsequent 

                                                                            Pairs

WHAT’S HAPPENING: 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. 

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.

      CB Consumer Confidence (Jan), U.S.

WHEN:                                                                WHAT IT INFLUENCES:

25th JANUARY 2022                                                USD and its subsequent 

                                                                             Pairs

WHAT’S HAPPENING: Conference Board (CB) Consumer Confidence measures the level of consumer confidence in economic activity. It is a leading indicator as it can predict consumer spending, which plays a major role in overall economic activity. Higher readings point to higher consumer optimism.

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.

    GDP (QoQ) (Q4), GERMANY

WHEN:                                                               WHAT IT INFLUENCES:

28th JANUARY 2022                                         EUR and its subsequent 

                                                                            Pairs

WHAT’S HAPPENING: Gross Domestic Product (GDP) is the broadest measure of economic activity and is a key indicator of economic health. The quarterly percent changes in GDP show the growth rate of the economy as a whole.

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.

CPI (QoQ) (Q4), AUSTRALIA 

WHEN:                                                               WHAT IT INFLUENCES:

24th JANUARY 2022                                         AUD 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 AUD, whereas a lower-than-expected reading should be taken as negative/bearish for the AUD.

BoC Interest Rate Decision, CANADA

WHEN:                                                               WHAT IT INFLUENCES:

26th JANUARY 2022                                         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. 

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. IBM (IBM) to announce its Quarterly Results on 24th JANUARY 2022, EPS estimated to 3.34 per share while revenue estimated 16.11B. 

2. Microsoft (MSFT) to announce its Quarterly Results on 25th JANUARY 2022, EPS estimated to 2.31 per share while revenue estimated 50.65B.

3. J&J (JNJ) to announce its Quarterly Results on 25th JANUARY 2022, EPS estimated to 2.15 per share while revenue estimated 25.82B.

4. Verizon (VZ) to announce its Quarterly Results on 25th JANUARY 2022, EPS estimated to 1.29 per share while revenue estimated 33.93B.

5. Tesla (TSLA) to announce its Quarterly Results on 26st JANUARY 2022, EPS estimated to 2.21 per share while revenue estimated 16.79B.

TOP COMMODITIES IN THE COMING WEEK

GOLD

Technical Analysis

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

SILVER

Technical Analysis

SILVER is trading in the upward channel. Further upside can be seen in the coming week.

WTI CRUDE OIL

Technical Analysis

WTI CRUDE OIL is trading in the up channel. Further upside can be seen in the coming week.

TOP CRYPTO IN THE COMING WEEK

BTCUSD

Technical Analysis

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

LITECOIN

Technical Analysis

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

 TOP CURRENCY IN THE COMING WEEK

EURUSD

Technical Analysis

EURUSD is trading in the up channel; further upside can be seen in the coming days.

GBPUSD

Technical Analysis

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

USDCHF

Technical Analysis

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

TOP INDEX IN THE COMING WEEK

NIKKEI 225

Technical Analysis

NIKKEI 225 is trading in the down channel; further downside will be seen in the coming days.

HANG SENG

Technical Analysis

HANG SENG is trading in the up channel; further upside will be seen in the coming days.

DATA WATCH

Technical Analysis

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