Weekly Technical Analysis Report – 08 August 2021

Weekly Technical Analysis Report – 08 August 2021

WEEKLY SNAPSHOT

    Manufacturing PMI (Jul), U.K.

    WHEN:                                               WHAT IT HAD INFLUENCED:

1st AUGUST 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 down channel. The further downside can be seen in the coming week.

     ADP Nonfarm Employment Change (Jul), U.S.

     WHEN:                                              WHAT IT HAD INFLUENCED:

     4th AUGUST 2021                                    USD and its subsequent pairs

WHAT HAPPENED: The ADP National Employment Report is a measure of the monthly change in non-farm, private employment, based on the payroll data of approximately 400,000 U.S. business clients. The release, two days ahead of government data, is a good predictor of the government’s non-farm payroll report. The change in this indicator can be very volatile.

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

Employment Change (Jul), CANADA 

WHEN:                                              WHAT IT HAD INFLUENCED:

6th AUGUST 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. 

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

Gold Crumbles as ‘Vengeful Dollar’ Takes Out Commodities

WHAT IT HAD INFLUENCED:

GOLD 

WHAT HAPPENED: Gold had its worst day and week in almost two months, crumbling to $1,750 lows, as the dollar sprung back from a recent spate of selling amid a resilient U.S. jobs report that again raised questions about the stimulus provided by the Federal Reserve to markets and the economy.

“It’s the vengeful dollar,” said Philip Streible, precious metals strategist for Blueline Futures in Chicago. “DX is coming back in a way that’s delivering an excruciating blow to most commodities today.”

DX, the trading symbol for the Dollar Index, was up 0.6% at 92.81 by 1:30 PM ET (17:30 GMT) as gold futures on New York’s Comex settled. It hit a near two-week high at 92.85 earlier, after tumbling to a one-month low of 91.82 earlier in the week.

Gold’s front-month futures on Comex settled down $43.40, or 2.5%, at $1,763.10 an ounce. For the week, it fell 3%.

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

Oil falls in biggest weekly decline in months on demand worries 

WHAT IT HAD INFLUENCED:

CRUDE OIL

WHAT HAPPENED: 

Oil prices fell about 1% lower on Friday, posting to their steepest weekly losses in months, on worries that travel restrictions to curb the spread of the Delta variant of COVID-19 will derail the global recovery in energy demand.

Crude futures also came under pressure as the dollar strengthened after monthly U.S. job growth came in higher than expected. A stronger dollar makes greenback-denominated oil more expensive for buyers in other currencies.

Brent crude oil futures settled down 59 cents, or 0.8%, at $70.70, while U.S. West Texas Intermediate (WTI) crude futures fell 81, or 1.2%, to settle at $68.28 a barrel.

For the week, global benchmark Brent shed more than 6%, its largest week of losses in four months, and WTI tumbled nearly 7% in its biggest weekly decline in nine months.

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

Ethereum’s Vitalik Buterin Says EIP 1559 ‘Most Important Part of London,’ Network Is Burning $16K in ETH per Minute

WHAT IT HAD INFLUENCED:

ETHEREUM

WHAT HAPPENED: At press time, Ethereum is burning 5.9 ether per minute or $16.8K using today’s exchange rates against the U.S. dollar. Meanwhile, in a recent interview from Singapore, Ethereum’s co-founder Vitalik Buterin said the Ethereum Improvement Proposal (EIP) “1559 is definitely the most important part of London.”

On Thursday morning around 8:30 a.m. (EDT) on August 5, the long-awaited Ethereum London hard fork took place and the blockchain was successfully upgraded. The community was ecstatic, to say the least, and on Twitter, terms like “ethereum” and “EIP1559” started trending.

Of course, the most topical conversation about the London upgrade was EIP-1559: The fee market change for ETH 1.0 chain. The EIP essentially changes the algorithm tethered to the base fee per gas in the protocol and it burns the base fee per gas.

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

5 KEY EVENTS TO WATCH OUT

     Manufacturing Production (MoM) (Jun), U.K.

 WHEN:                                                              WHAT IT INFLUENCES:

 12th AUGUST 2021                                           GBP and its subsequent 

                                                                             pairs

WHAT’S HAPPENING: Manufacturing Production measures the change in the total inflation-adjusted value of output produced by manufacturers. Manufacturing accounts for approximately 80% of overall Industrial Production.

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:

12th AUGUST 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.

    Building Approvals (MoM), AUSTRALIA

WHEN:                                                               WHAT IT INFLUENCES:

9th AUGUST 2021                                                    AUD and its subsequent 

                                                                             pairs

WHAT’S HAPPENING: Building Approvals (also known as Building Permits) measures the change in the number of new building approvals issued by the government. Building permits are key indicator of demand in the housing market.

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.

Current Account n.s.a. (Jun), JAPAN

WHEN:                                                                WHAT IT INFLUENCES:

9th AUGUST 2021                                                    JPY and its subsequent 

                                                                              Pairs 

WHAT’S HAPPENING:  The Current Account index measures the difference in value between exported and imported goods, services and interest payments during the reported month. The goods portion is the same as the monthly Trade Balance figure.

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.

CPI (MoM) (Jul), GERMANY

WHEN:                                                               WHAT IT INFLUENCES:

11th AUGUST 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.

EQUITIES IN THE COMING WEEK

1. BioNTech (BNTX) to announce its Quarterly Results on 09th AUGUST 2021, EPS estimated to 7.54 per share while revenue estimated 3.25B. 

2. SoftBank Group (SFTBY) to announce its Quarterly Results on 10th AUGUST 2021, EPS estimated to -0.2404 per share while revenue estimated 11.98B.

3. Bentley (BSY) to announce its Quarterly Results on 10th AUGUST 2021, EPS estimated to 0.1457 per share while revenue estimated 213.45M.

4. NetEase (NTES) to announce its Quarterly Results on 11th AUGUST 2021, EPS estimated to 6.19 per share while revenue estimated 20.63B.

5. eBay (EBAY) to announce its Quarterly Results on 11th AUGUST 2021, EPS estimated to 0.9575 per share while revenue estimated 3B.

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 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 trading in a parallel channel, it will consolidate in a range until there is a breakout on either side.

ETHEREUM

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

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.

EURGBP

Technical Analysis

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

TOP INDEX 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.

DOW JONES

Technical Analysis

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

DATA WATCH

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