WEEKLY TECHNICAL ANALYSIS REPORT – 19 SEPTEMBER 2021

Technical Analysis

WEEKLY TECHNICAL ANALYSIS REPORT – 19 SEPTEMBER 2021

WEEKLY SNAPSHOT

Claimant Count Change (Aug), U.K.

    WHEN:                                               WHAT IT HAD INFLUENCED:

14th SEPTEMBER 2021                            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 labour market, which has a trickle-down effect on consumer spending and economic growth.

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

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

     WHEN:                                              WHAT IT HAD INFLUENCED:

     16th SEPTEMBER 2021                           USD and its subsequent pairs

WHAT HAPPENED: 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.

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

Employment Change (Aug), AUSTRALIA

WHEN:                                              WHAT IT HAD INFLUENCED:

15th SEPTEMBER 2021                           AUD 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.

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

Gold: Sharpest Weekly Loss in Six as Dollar, Yields Bolt Higher

WHAT IT HAD INFLUENCED:

GOLD 

WHAT HAPPENED: A ramping dollar and U.S. Treasury yields gave little respite on Friday to gold prices trying to rebound from the previous day’s meltdown, with the yellow metal settling down for a third day in a row and booking its worst weekly loss in six.

U.S. gold futures’ most active contract, December, settled down $5.30, or 0.3%, at $1,751.40 per ounce on New York’s Comex.

For the week, it fell 2.3%, its most since the week to July 29. December gold slumped $50 at one point in Thursday’s session, to a five-week bottom of $1,745.50. The meltdown in gold came as rival dollar catapulted on data showing upbeat U.S. retail sales for August that put the economy in ebullient light after weeks of challenging data from Covid’s Delta variant.

The Dollar Index, which pits the greenback against the euro and five other major currencies, rose 0.7% over the last two sessions to reach a three-week high of almost 93.200. The yield on the -year U.S. Treasury note rose for a third day in a row, also weighing on gold.

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

Oil falls as storm-hit U.S. supply trickles back into market

WHAT IT HAD INFLUENCED:

CRUDE OIL

WHAT HAPPENED: 

Oil prices fell on Friday as energy companies in the U.S. Gulf of Mexico restarted production after back-to-back hurricanes in the region shut output.

Brent crude futures fell 33 cents to settle at $75.34 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell 64 cents to settle at $71.97 a barrel. For the week, Brent was up 3.3% and U.S. crude was up 3.2%, supported by tight supplies due to the hurricane outages.

Friday’s slump followed five straight sessions of rises for Brent. On Wednesday, Brent hit its highest since late July, and U.S. crude hit its highest since early August.

“The reason oil prices reached such highs in the last few days was clearly supply disruptions and drawdowns in inventories, so now that U.S. oil production is returning, oil as expected trades lower,” said Nishant Bhushan, Rystad Energy’s oil markets analyst.

WTI CRUDE OIL is currently in the upward channel. Further upside can be seen in the coming week.

$1.2B in Ether withdrawn from centralized exchanges in record daily outflow

WHAT IT HAD INFLUENCED:

ETHEREUM

WHAT HAPPENED: More than $1 billion worth of Ether (ETH) has been removed from centralized exchanges in the past 24 hours, leading to speculation about imminent price gains for Ether as supply shrinks on many trading venues.

According to data shared by crypto analytics provider IntoTheBlock, $1.2 billion worth of ETH was withdrawn from centralized exchanges on Thursday to mark a new record in short-term outflows from exchanges

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

5 KEY EVENTS TO WATCH OUT

     Manufacturing PMI, U.K.

 WHEN:                                                              WHAT IT INFLUENCES:

 23rd SEPTEMBER 2021                                    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.

      Initial Jobless Claims, U.S.

WHEN:                                                                WHAT IT INFLUENCES:

23rd 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.

    PPI (MoM) (Aug), GERMANY

WHEN:                                                               WHAT IT INFLUENCES:

20th SEPTEMBER 2021                                     EUR and its subsequent 

                                                                             Pairs

WHAT’S HAPPENING: The German Producer Price Index (PPI) measures the change in the price of goods sold by manufacturers.

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.

New Housing Price Index (MoM) (Aug), CANADA

WHEN:                                                                WHAT IT INFLUENCES:

21st SEPTEMBER 2021                                            CAD and its subsequent 

                                                                              Pairs 

WHAT’S HAPPENING:  The New Housing Price Index (NHPI) measures the change in selling prices for new homes. It is a leading indicator of health in the housing sector.

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.

Manufacturing PMI (Sep), EURO ZONE

WHEN:                                                               WHAT IT INFLUENCES:

23rd SEPTEMBER 2021                                             EUR 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 EUR, whereas a lower-than-expected reading should be taken as negative/bearish for the EUR.

EQUITIES IN THE COMING WEEK

1. Adobe (ADBE) to announce its Quarterly Results on 21st SEPTEMBER 2021, EPS estimated to 3.01 per share while revenue estimated 3.9B. 

2. FedEx (FDX) to announce its Quarterly Results on 21st SEPTEMBER 2021, EPS estimated to 5 per share while revenue estimated 21.82B.

3. BlackBerry (BB) to announce its Quarterly Results on 22nd SEPTEMBER 2021, EPS estimated to -0.0768 per share while revenue estimated 161.9M.

4. Nike (NKE) to announce its Quarterly Results on 23rd SEPTEMBER 2021, EPS estimated to 1.12 per share while revenue estimated 12.46B.

5. Accenture (ACN) to announce its Quarterly Results on 23rd SEPTEMBER 2021, EPS estimated to 2.18 per share while revenue estimated 13.38B.

TOP COMMODITIES IN THE COMING WEEK

GOLD

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

SILVER

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

WTI CRUDE OIL is currently in the upward channel. Further upside can be seen in the coming week.

TOP CRYPTO IN THE COMING WEEK

BTCUSD

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

ETHEREUM

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

 TOP CURRENCY IN THE COMING WEEK

EURUSD 

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

GBPUSD

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

EURGBP

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

TOP INDEX IN THE COMING WEEK

NASDAQ 100

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

S&P 500

S&P 500 is currently in the upward channel. Further upside can be seen in the coming week.

DATA WATCH

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