Weekly Technical Analysis Report – 12 September 2021

Technical Analysis

Weekly Technical Analysis Report – 12 September 2021

WEEKLY SNAPSHOT

    GDP (YoY), U.K.

    WHEN:                                               WHAT IT HAD INFLUENCED:

10th SEPTEMBER 2021                            GBP and its subsequent pairs

WHAT HAPPENED: 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.

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:

     9th SEPTEMBER 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.

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

ZEW Economic Sentiment (Sep), GERMANY

WHEN:                                              WHAT IT HAD INFLUENCED:

07th SEPTEMBER 2021                            EUR and its subsequent pairs 

WHAT HAPPENED: 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.

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

Gold Has First Weekly Loss in Five as U.S. Inflation Fuels Fed Taper Talk

WHAT IT HAD INFLUENCED:

GOLD 

WHAT HAPPENED: Gold booked its first weekly loss in five as brief euphoria for longs over the dismal U.S. jobs report for August gave way to dismay as the dollar rebounded on relentless talk of a Federal Reserve stimulus taper.

Most-active December gold futures on New York’s Comex closed down $7.90, or 0.4%, at $1,792.10 an ounce. For the week, it fell 2.3%, its most since the week to July 29. It was also Comex gold’s first weekly loss since the end of July.

Friday’s drop in gold was partly pressured by data showing U.S. producer prices rising by 8.3 percent in August, their most in over a decade, as inflationary pressure grew unrelentingly in an economy trying to break out of the shackles of the coronavirus pandemic.

The Fed’s stimulus program and other monetary accommodation have been blamed for aggravating price pressures in the United States.

The central bank has been buying $120 billion in bonds and other assets since the Covid-19 outbreak of March 2020 to support the economy. It 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.

Crude prices climb by more than 2%, settle higher for the week

WHAT IT HAD INFLUENCED:

CRUDE OIL

WHAT HAPPENED: 

Crude-oil futures climbed on Friday to settle higher for the week. Crude-oil prices appear to have received a boost from a phone call between China’s President Xi Jinping of China and U.S. President Joe Biden, “with the hope that we might see a dialing back of some of the tension between the two countries,” said Michael Hewson, chief market analyst at CMC Markets UK. Traders will get an update on the outlook for the oil market from the Organization of the Petroleum Exporting Countries on Monday and the International Energy Agency on Tuesday. On the New York Mercantile Exchange, West Texas Intermediate crude for October delivery rose $1.58, or 2.3%, to settle at $69.72 a barrel. Front-month contract prices climbed 0.6% for the week.

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

El Salvador’s bonds suffer as Bitcoin Law takes effect

WHAT IT HAD INFLUENCED:

ETHEREUM

WHAT HAPPENED: El Salvador’s move to embrace Bitcoin has ruffled the feathers of bond investors, with yields spiking as investors signal uncertainty for the emerging economy.

A Wednesday report published by Bloomberg notes that recently, the yield curve on El Salvador’s bonds has inverted, meaning bonds with short-term maturities are now yielding more than is due from the instruments.

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

5 KEY EVENTS TO WATCH OUT

     Claimant Count Change (Aug), U.K.

 WHEN:                                                              WHAT IT INFLUENCES:

 14th SEPTEMBER 2021                                    GBP and its subsequent 

                                                                             pairs

WHAT’S HAPPENING: 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 labour market, which has a trickle-down effect on consumer spending and economic growth.

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 Retail Sales (MoM) (Aug), U.S.

WHEN:                                                                WHAT IT INFLUENCES:

16th SEPTEMBER 2021                                            USD and its subsequent 

                                                                              Pairs

WHAT’S HAPPENING: Core Retail Sales measures the change in the total value of sales at the retail level in the U.S., excluding automobiles. It is an important indicator of consumer spending and is also considered as a pace indicator for the U.S. economy.

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.

    Employment Change (Aug), AUSTRALIA

WHEN:                                                               WHAT IT INFLUENCES:

15th SEPTEMBER 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.

Core CPI (MoM) (Aug), CANADA

WHEN:                                                                WHAT IT INFLUENCES:

15th SEPTEMBER 2021                                            CAD 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 CAD, whereas a lower-than-expected reading should be taken as negative/bearish for the CAD.

CPI (YoY) (Aug), EURO ZONE

WHEN:                                                               WHAT IT INFLUENCES:

17th SEPTEMBER 2021                                             EUR 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 EUR, whereas a lower-than-expected reading should be taken as negative/bearish for the EUR.

EQUITIES IN THE COMING WEEK

1. Oracle (ORCL) to announce its Quarterly Results on 13th SEPTEMBER 2021, EPS estimated to 0.9716 per share while revenue estimated 9.76B. 

2. Matrix (MTRX) to announce its Quarterly Results on 13th SEPTEMBER 2021, EPS estimated to -0.025 per share while revenue estimated 177.17M.

3. Ashtead Group (AHT) to announce its Quarterly Results on 16th SEPTEMBER 2021, EPS estimated to 0.5305 per share while revenue estimated 1.3B.

4. Wild Brain (WLDBF) to announce its Quarterly Results on 14th SEPTEMBER 2021, EPS estimated to 0.0186 per share while revenue estimated 83.31M.

5. Astro Nova (ALOT) to announce its Quarterly Results on 14th SEPTEMBER 2021, EPS estimated to 0.06 per share while revenue estimated 29.95M.

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.

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

GBPUSD

Technical Analysis

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

CHFJPY

Technical Analysis

CHFJPY 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

FTSE 100

Technical Analysis

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

CAC 40

Technical Analysis

CAC 40 is currently in the upward channel. Further upside can be seen in the coming week.

DATA WATCH

Technical Analysis

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