Weekly Technical Analysis Report – 22 August 2021

Weekly Technical Analysis Report – 22 August 2021

WEEKLY SNAPSHOT

    CPI (YoY) (Jul), U.K.

    WHEN:                                               WHAT IT HAD INFLUENCED:

18th AUGUST 2021                                  GBP and its subsequent pairs

WHAT HAPPENED: 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.

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

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

     WHEN:                                              WHAT IT HAD INFLUENCED:

     17th AUGUST 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.

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

Employment Change (Jul), AUSTRALIA

WHEN:                                              WHAT IT HAD INFLUENCED:

18th AUGUST 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.

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

Gold futures end higher to post a gain for the week

WHAT IT HAD INFLUENCED:

GOLD 

WHAT HAPPENED: Gold futures climbed on Friday, tallying a second weekly gain in a row. “The Afghanistan situation and coronavirus situation is preventing gold and silver prices from a crash,” said Chintan Karnani, director of research at Insignia Consultants. Gold’s rise despite a very strong U.S. dollar index indicates traders have switched focus to the uncertainties tied to the Taliban takeover in Afghanistan and the coronavirus situation. “A worsening of either Afghanistan or coronavirus on the weekend can result in gold price rising in early Asian session on Monday,” said Karnani. “Only surprises (other than taper timing and taper) in the annual central banker’s conference in Jackson Hole, [Wyo.] next week will affect bullion and forex markets.” December gold GCZ21, -0.03% rose 90 cents, or 0.05%, to settle at $1,784 an ounce.

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

Crude Oil End Week Near-Three Month Lows as Bears Feast on Demand Jitters

WHAT IT HAD INFLUENCED:

CRUDE OIL

WHAT HAPPENED: 

Crude oil prices slumped Friday, settling near three-month lows as signs that US energy firms are looking to increase output, added to concerns about a possible glut in crude supply just as the Delta variant weighs on demand.

On the New York Mercantile Exchange crude futures for September delivery fell by 52 cents to settle at $62.98 a barrel, while on London’s Intercontinental Exchange (NYSE:ICE), Brent slipped 0.7% to trade at $65.93 a barrel.

Oilfield services firm Barker Hughes reported its weekly U.S. rig count rose by 8 to 405.

Rising rig counts, pointing to signs of tightening crude output, did little to calm worries that demand could outstrip supply as China, the world’s largest energy consumer, is showing signs of slowing growth amid restrictions to curb the Delta variant.

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

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

     Composite PMI (Aug), U.K.

 WHEN:                                                              WHAT IT INFLUENCES:

 23rd AUGUST 2021                                           GBP and its subsequent 

                                                                             pairs

WHAT’S HAPPENING: The Composite PMI Index measures the activity level of purchasing managers in the both sectors. A reading above 50 indicates expansion in the sector; a reading 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.

      Existing Home Sales (Jul), U.S.

WHEN:                                                                WHAT IT INFLUENCES:

23rd AUGUST 2021                                                   USD and its subsequent 

                                                                              Pairs

WHAT’S HAPPENING: Existing Home Sales measures the change in the annualized number of existing residential buildings that were sold during the previous month. This report helps to gauge the strength of the U.S. housing market and is a key indicator of overall economic strength.

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.

    GDP (QoQ) (Q2), GERMANY

WHEN:                                                               WHAT IT INFLUENCES:

24th AUGUST 2021                                            EUR and its subsequent 

                                                                             pairs

WHAT’S HAPPENING: Gross Domestic Product (GDP) is the broadest measure of economic activity and is a key indicator of economic health. The quarterly percent changes in GDP show the growth rate of the economy as a whole.

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.

Retail Sales (MoM) (Jul), AUSTRALIA

WHEN:                                                                WHAT IT INFLUENCES:

26th AUGUST 2021                                                  AUD 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 AUD, whereas a lower-than-expected reading should be taken as negative/bearish for the AUD.

Markit Composite PMI (Aug), EURO ZONE

WHEN:                                                               WHAT IT INFLUENCES:

23rd AUGUST 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. Best Buy (BBY) to announce its Quarterly Results on 24th AUGUST 2021, EPS estimated to 1.89 per share while revenue estimated 11.49B. 

2. Salesforce.com (CRM) to announce its Quarterly Results on 25th AUGUST 2021, EPS estimated to 0.9206 per share while revenue estimated 6.24B.

3. Autodesk (ADSK) to announce its Quarterly Results on 25th AUGUST 2021, EPS estimated to 1.12 per share while revenue estimated 1.05B.

4. Dell Tech (DELL) to announce its Quarterly Results on 26th AUGUST 2021, EPS estimated to 2.03 per share while revenue estimated 25.54B.

5. Workday (WDAY) to announce its Quarterly Results on 26th AUGUST 2021, EPS estimated to 0.7745 per share while revenue estimated 1.24B.

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

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

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

 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

DAX 30

Technical Analysis

DAX 30 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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