Weekly Technical Analysis Report – 05 September 2021

Weekly Technical Analysis Report – 05 September 2021

WEEKLY SNAPSHOT

    Manufacturing PMI (Aug), U.K.

    WHEN:                                               WHAT IT HAD INFLUENCED:

01st SEPTEMBER 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 currently in the downward channel. Further downside can be seen in the coming week.

     Pending Home Sales (MoM) (Jul), U.S.

     WHEN:                                              WHAT IT HAD INFLUENCED:

     30th AUGUST 2021                                  USD and its subsequent pairs

WHAT HAPPENED: The National Association of Realtors (NAR) Pending Home Sales Report measures the change in the number of homes under contract to be sold but still awaiting the closing transaction, excluding new construction.

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

Manufacturing PMI (Aug), GERMANY

WHEN:                                              WHAT IT HAD INFLUENCED:

01st SEPTEMBER 2021                            EUR and its subsequent pairs 

WHAT HAPPENED: The German 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 indicates contraction.

EURJPY is trading in the down channel; further downside can be seen if not able to break out the channel.

Gold at 2-Month High, up 4th Week in Row on Abysmal U.S. Jobs

WHAT IT HAD INFLUENCED:

GOLD 

WHAT HAPPENED: Gold prices hit a two-month high and rose for a fourth week in a row after shockingly low U.S. jobs growth in August brought a rush of money into the yellow metal from those betting that the Federal Reserve won’t be able to taper right away the stimulus it has been providing the Covid-hampered economy.

The U.S. Labor Department reported on Friday that employers added 235,000 jobs in August, less than a third of the forecast 733,000, amid continued struggles with the coronavirus pandemic. The only consolation was the August unemployment rate improving to 5.2% from July’s 5.4%.

Prior to the release of the August job numbers, there had been rife speculation that the Federal Reserve, which has been buying $120 billion in bonds and other assets since the Covid outbreak in March last year, will taper some of its lifeline to the economy. The central bank has also been keeping interest rates at virtually zero levels for the past 18 months.

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

Oil Down on Day after Dismal U.S. Jobs, Steady on Week

WHAT IT HAD INFLUENCED:

CRUDE OIL

WHAT HAPPENED: 

Oil prices fell about 1% on Friday after an abysmal U.S. jobs report for August, although the bottom side for crude was limited by speculation that the Federal Reserve will hold off from tapering the stimulus it was providing the Covid-restrained economy.

London-traded Brent crude, the global benchmark for oil, settled at $72.61 per barrel, down 42 cents, or 0.6%, on the day. For the week, Brent lost just 0.1%. 

New York-traded West Texas Intermediate, the benchmark for U.S. oil, settled the day at $69.29 per barrel, down 70 cents, or 1%. For the week, WTI rose 0.8%.

The U.S. Labor Department reported on Friday that employers added 235,000 jobs in August, less than a third of the forecast 733,000, amid continued struggles with the coronavirus pandemic. The only consolation was the August unemployment rate improving to 5.2% from July’s 5.4%.

WTI CRUDE OIL is trading in the down channel; further downside can be seen if not able to break out the channel.

As Ethereum Approaches $4k, On-chain Data Shows Rally Will Continue Even Higher

WHAT IT HAD INFLUENCED:

ETHEREUM

WHAT HAPPENED: Even with Ethereum’s strong run where the coin has reached near $4k, on-chain data shows there is still more room for the bull rally to continue. Ethereum All Exchanges Taker Buy Sell Ratio Shoots Up As pointed out by a CryptoQuant post, the ETH all exchanges taker buy sell volume has shown a huge spike today. The Ethereum all exchanges taker buy sell ratio (or volume) is an indicator that shows the ratio between long volume and the taker seller volume.

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

5 KEY EVENTS TO WATCH OUT

     GDP (YoY), U.K.

 WHEN:                                                              WHAT IT INFLUENCES:

 10th SEPTEMBER 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:

9th SEPTEMBER 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.

    ZEW Economic Sentiment (Sep), GERMANY

WHEN:                                                               WHAT IT INFLUENCES:

07th SEPTEMBER 2021                                            EUR and its subsequent 

                                                                             Pairs

WHAT’S HAPPENING: The German Zentrum für Europäische Wirtschaftsforschung (ZEW) Economic Sentiment Index gauges the six-month economic outlook. A level above zero indicates optimism; below indicates pessimism. The reading is compiled from a survey of about 350 German institutional investors and analysts.

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.

Employment Change (Aug), CANADA

WHEN:                                                                WHAT IT INFLUENCES:

10th SEPTEMBER 2021                                            CAD 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 CAD, whereas a lower-than-expected reading should be taken as negative/bearish for the CAD.

Deposit Facility Rate (Aug), EURO ZONE

WHEN:                                                               WHAT IT INFLUENCES:

09th SEPTEMBER 2021                                             EUR and its subsequent 

                                                                             pairs

WHAT’S HAPPENING: The deposit facility is the rate which banks may use to make overnight deposits with the Euro system.

EQUITIES IN THE COMING WEEK

1. Smartsheet (SMAR) to announce its Quarterly Results on 06th SEPTEMBER 2021, EPS estimated to -0.133 per share while revenue estimated 125.48M. 

2. H&R Block (HRB) to announce its Quarterly Results on 06th SEPTEMBER 2021, EPS estimated to -0.34 per share while revenue estimated 346.65M.

3. Genius Sports (GENI) to announce its Quarterly Results on 08th SEPTEMBER 2021, EPS estimated to -0.82 per share while revenue estimated 53.75M.

4. Rev Group (REVG) to announce its Quarterly Results on 08th SEPTEMBER 2021, EPS estimated to 0.3356 per share while revenue estimated 663.47M.

5. Kroger (KR) to announce its Quarterly Results on 10th SEPTEMBER 2021, EPS estimated to 0.6281 per share while revenue estimated 30.56B.

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 is trading in the down channel; further downside can be seen if not able to break out the channel.

WTI CRUDE OIL

Technical Analysis

WTI CRUDE OIL is trading in the down channel; further downside can be seen if not able to break out the channel.

TOP CRYPTO IN THE COMING WEEK

BTCUSD

Technical Analysis

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

LITECOIN USD

Technical Analysis

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

 TOP CURRENCY IN THE COMING WEEK

EURUSD 

Technical Analysis

EURUSD was trading in the down channel; it had broken the down channel upside. If able to sustain above the channel upside can be seen.

GBPUSD

Technical Analysis

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

USDJPY

Technical Analysis

USDJPY 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

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

DATA WATCH

Technical Analysis

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