Weekly Technical Analysis Report – 15 August 2021

Weekly Technical Analysis Report – 15 August 2021

WEEKLY SNAPSHOT

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

    WHEN:                                               WHAT IT HAD INFLUENCED:

12th AUGUST 2021                                     GBP and its subsequent pairs

WHAT HAPPENED: 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.

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

     Initial Jobless Claims, U.S.

     WHEN:                                              WHAT IT HAD INFLUENCED:

     12th AUGUST 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 trading in the parallel channel, further upside can be seen if it breaks the channel upside and vice-versa.

Current Account n.s.a. (Jun), JAPAN 

WHEN:                                              WHAT IT HAD INFLUENCED:

9th AUGUST 2021                                    JPY and its subsequent pairs 

WHAT HAPPENED: 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. 

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

Gold up 1% on Week, Still Below Key $1,800 Level

WHAT IT HAD INFLUENCED:

GOLD 

WHAT HAPPENED: Gold finished with a weekly gain of 1%, after the meltdown that took it to sub-$1,700 levels.

But the recovery was far from the fabled likes of a phoenix rising from its ashes. As the dust settled on Friday’s trade, longs in the market were still short of recapturing the key $1,800 level that would be prerequisite to the yellow metal regaining some bullish shine.

Gold’s front-month gold on New York’s Comex settled the day up $26.40, or 1.5%, at $1,778.20 an ounce.

It was a comeback of sorts for the benchmark gold futures contract that just on Monday settled at its lowest since March 31, at $1,726.50. Also, prior to the start of this week’s U.S. session, the front-month contract plunged to $1,672.80 in Asian trading in what has largely been characterized as a “flash-crash”.

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

Oil: The Story Hardly Gets Better After Another Dismal Week

WHAT IT HAD INFLUENCED:

CRUDE OIL

WHAT HAPPENED: 

Another week, and the story in oil is hardly any better.

U.S. crude scraped together a tiny gain for the week, while Brent couldn’t even manage that.

The insistent drone of the Covid narrative, via the Delta variant, and a dismal U.S. consumer reading for August put paid to any comeback by crude prices on Friday.

New York-traded West Texas Intermediate crude, the benchmark for U.S. oil, settled down 65 cents, or 0.9%, at $68.44 per barrel. For the week, it rose 0.2% — barely a makeup for last week’s 7.7% plunge, which was its sharpest since October 2020.

London-traded Brent, the global benchmark for oil, settled down 72 cents, or 1%, at $70.59. For the week, Brent fell 0.2%, after last week’s 7.4% drop.

Oil “is in a bit of a no-mans-land and it could take a few days to gather steam for another run,” Phil Flynn, analyst at Chicago’s Price Futures Group, said. “If Covid concerns ease a bit then reports of falling global oil inventories should ignite another rally.”

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

Bitcoin rises 7.07% to $47,587.38

WHAT IT HAD INFLUENCED:

BITCOIN

WHAT HAPPENED: Bitcoin surged 7.07% to $47,587.38 at 2200 GMT on Friday, adding $3,142.93 to its previous close.

Bitcoin, the world’s biggest and best-known cryptocurrency, is up 71.6% from the year’s low of $27,734 on Jan. 4.

Ether, the coin linked to the Ethereum blockchain network, rose 7.86% to $3,284.18 on Friday, adding $243.55 to its previous close.

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

5 KEY EVENTS TO WATCH OUT

     CPI (YoY) (Jul), U.K.

 WHEN:                                                              WHAT IT INFLUENCES:

 18th AUGUST 2021                                           GBP 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 GBP, whereas a lower-than-expected reading should be taken as negative/bearish for the GBP.

      Core Retail Sales (MoM) (Jul), U.S.

WHEN:                                                                WHAT IT INFLUENCES:

17th AUGUST 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 (Jul), AUSTRALIA

WHEN:                                                               WHAT IT INFLUENCES:

18th AUGUST 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.

Retail Sales (MoM) (Jul), CANADA

WHEN:                                                                WHAT IT INFLUENCES:

20th AUGUST 2021                                                  CAD and its subsequent 

                                                                              Pairs 

WHAT’S HAPPENING:  Retail Sales measure the change in the total value of inflation-adjusted sales at the retail level. It is the foremost indicator of consumer spending, which accounts for the majority of overall economic activity.

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) (Jul), EURO ZONE

WHEN:                                                               WHAT IT INFLUENCES:

18th AUGUST 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. NetEase (NTES) to announce its Quarterly Results on 16th AUGUST 2021, EPS estimated to 6.14 per share while revenue estimated 20.61B. 

2. Walmart (WMT) to announce its Quarterly Results on 17th AUGUST 2021, EPS estimated to 1.54 per share while revenue estimated 135.87B.

3. Home Depot (HD) to announce its Quarterly Results on 17th AUGUST 2021, EPS estimated to 4.4 per share while revenue estimated 40.38B.

4. NVIDIA (NVDA) to announce its Quarterly Results on 18th AUGUST 2021, EPS estimated to 1.02 per share while revenue estimated 6.32B.

5. Cisco (CSCO) to announce its Quarterly Results on 18th AUGUST 2021, EPS estimated to 0.8284 per share while revenue estimated 13.04B.

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 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.

EURJPY

Technical Analysis

EURJPY 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

DJ EURO STOXX 50

Technical Analysis

EURO STOXX 50 is currently in the upward channel. Further upside can be seen 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.

DATA WATCH

Technical Analysis

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