Weekly Technical Analysis Report – 29 August 2021

Weekly Technical Analysis Report – 29 August 2021

WEEKLY SNAPSHOT

    Composite PMI (Aug), U.K.

    WHEN:                                               WHAT IT HAD INFLUENCED:

23rd AUGUST 2021                                  GBP and its subsequent pairs

WHAT HAPPENED: 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.

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

     Existing Home Sales (Jul), U.S.

     WHEN:                                              WHAT IT HAD INFLUENCED:

     23rd AUGUST 2021                                  USD and its subsequent pairs

WHAT HAPPENED: 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.

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

GDP (QoQ) (Q2), GERMANY

WHEN:                                              WHAT IT HAD INFLUENCED:

24th AUGUST 2021                                  EUR and its subsequent pairs 

WHAT HAPPENED: 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.

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

Gold at 3-Week High as Powell Dashes Taper Hopes

WHAT IT HAD INFLUENCED:

GOLD 

WHAT HAPPENED: Gold hit 3-week highs on Friday, notching its best weekly gain since May, after Federal Reserve Chairman Jerome Powell failed to give a clear timetable for tapering U.S. stimulus spending at the central bank’s much-anticipated Jackson Hole monetary policy symposium.

The dollar and U.S. Treasury yields tumbled while risk assets from stocks to commodities, including oil, rocketed on the move. Gold, while labeled as a safe-haven, got a ride higher too, given its sensitivity to inflation, which typically propels the yellow metal’s prices.

Front-month gold on New York’s Comex settled up $24.30, or 1.4%, at $1,819.50 an ounce, after a three-week high at $1,821.55. For the week, it rose around 2%, its most since the week to mid-May.

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

Crude Oil Higher; Tropical Storm Ida and Powell’s Speech in Focus

WHAT IT HAD INFLUENCED:

CRUDE OIL

WHAT HAPPENED: 

Crude oil prices strengthened Friday, set to post substantial gains this week, boosted by likely supply disruptions as Tropical Storm Ida heads toward the U.S. Gulf Coast.

By 9 AM ET (1300 GMT), U.S. crude futures were up 2.3% at $68.94 a barrel, on track for a weekly gain of more than 9%, while Brent futures were up 1.9% at $71.52 a barrel, set for a more than 10% weekly win.

U.S. Gasoline RBOB Futures were up 1.9% at $2.2975 a gallon.

“The storm is expected to make landfall in Louisiana and possibly parts of Texas on late Sunday or early Monday. More than 50% of US refining capacity sits in the US Gulf Coast, leaving the risk of large supply disruptions to refined products,” said analysts at ING, in a note.

Adding to the supply concerns was the news late Thursday that Libya’s Arabian Gulf Oil Company, a subsidiary of the state-owned National Oil Corporation, will stop operations unless it receives its budget allocation for 2020 and 2021, potentially removing around 250,000 barrels a day from the global market.

WTI CRUDE OIL was trading in the down channel; further upside can be seen if it sustains after breakout.

Morgan Stanley Buys 6.5 million Grayscale Bitcoin Trust Shares

WHAT IT HAD INFLUENCED:

BITCOIN

WHAT HAPPENED: Morgan Stanley investments funds have acquired over 6.5 million shares in Grayscale Bitcoin Trust (GBTC) in a move that comes as other large financial institutions eye ways to give their clients exposure to the cryptocurrency space.

According to SEC filings, spotted by Decrypt, from the company, Morgan Stanley invested in GBTC across more than a dozen funds. Its largest holder of the Bitcoin-focused fund is now its Growth Portfolio, which has 2.3 million shares.

Other funds include the Morgan Stanley Insight Fund, an equity growth fund that manages $8 billion in assets and picked up over 900,000 shares in GBTC worth $27.6 million, and the bank’s Discovery Portfolio bought around 600,000 shares. Its VIF Growth Portfolio holds 130,000 shares.

Morgan Stanley’s shares were reportedly purchased in June, when BTC was hovering around the $30,000 mark and GBTC shares were trading close to the $30 mark. The fund’s shares, it’s worth noting, don’t represent one full BTC. Instead, according to Grayscale’s website, each share has 0.000937812 BTC in it.

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

5 KEY EVENTS TO WATCH OUT

     Manufacturing PMI (Aug), U.K.

 WHEN:                                                              WHAT IT INFLUENCES:

 01st 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.

      Pending Home Sales (MoM) (Jul), U.S.

WHEN:                                                                WHAT IT INFLUENCES:

30th AUGUST 2021                                                   USD and its subsequent 

                                                                              Pairs

WHAT’S HAPPENING: The National Association of Realtors (NAR) Pending Home Sales Report measures the change in the number of homes under contract to be sold but still awaiting the closing transaction, excluding new construction.

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.

    Manufacturing PMI (Aug), GERMANY

WHEN:                                                               WHAT IT INFLUENCES:

01st SEPTEMBER 2021                                            EUR and its subsequent 

                                                                             Pairs

WHAT’S HAPPENING: The German 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 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.

Retail Sales (MoM), AUSTRALIA

WHEN:                                                                WHAT IT INFLUENCES:

2nd SEPTEMBER 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.

CPI (YoY) (Aug), EURO ZONE

WHEN:                                                               WHAT IT INFLUENCES:

31st 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. Zoom Video (ZM) to announce its Quarterly Results on 30th AUGUST 2021, EPS estimated to 1.16 per share while revenue estimated 991.41M. 

2. NetEase (NTES) to announce its Quarterly Results on 31st AUGUST 2021, EPS estimated to 6.14 per share while revenue estimated 20.61B.

3. Broadcom (AVGO) to announce its Quarterly Results on 2nd SEPTEMBER 2021, EPS estimated to 6.88 per share while revenue estimated 6.76B.

4. Hewlett Packard (HPE) to announce its Quarterly Results on 2nd SEPTEMBER 2021, EPS estimated to 0.4247 per share while revenue estimated 6.93B.

5. DocuSign (DOCU) to announce its Quarterly Results on 03rd SEPTEMBER 2021, EPS estimated to 0.4019 per share while revenue estimated 488.71B.

TOP COMMODITIES IN THE COMING WEEK

GOLD

Technical Analysis Report

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

SILVER

Technical Analysis Report

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

WTI CRUDE OIL

Technical Analysis Report

WTI CRUDE OIL was trading in the down channel; further upside can be seen if it sustains after breakout.

TOP CRYPTO IN THE COMING WEEK

BTCUSD

Technical Analysis Report

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

ETHEREUM

Technical Analysis Report

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 Report

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

GBPUSD

Technical Analysis Report

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

USDCAD

Technical Analysis Report

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

TOP INDEX IN THE COMING WEEK

NIKKEI 225

Technical Analysis Report

NIKKEI 225 is trading in the down channel; further downside can be seen if not able to break out the channel.

DOW JONES

Technical Analysis Report

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

DATA WATCH

Technical Analysis Report

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