Weekly Technical Analysis & Weekly Market Strategy – 28 August 2022
28 Aug 2022
WEEKLY SNAPSHOT
- Composite PMI, U.K.
WHEN: WHAT IT HAD INFLUENCED:
23rd AUGUST 2022 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 downward channel. Further downside can be seen in the coming week.
- Pending Home Sales (MoM) (Jul), U.S.
WHEN: WHAT IT HAD INFLUENCED:
24th AUGUST 2022 USD and its subsequent pairs
WHAT HAPPENED: 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.
USDCAD is currently in the upward channel. Further upside can be seen in the coming week.
- New Housing Price Index (MoM) (Jul), CANADA
WHEN: WHAT IT HAD INFLUENCED:
22nd AUGUST 2022 CAD and its subsequent pairs
WHAT HAPPENED: 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.
CADJPY is currently in the upward channel. Further upside can be seen in the coming week.
Gold Below $1,750 as Fed Signals No Pause in Inflation-Busting Rate Hikes
WHAT IT HAD INFLUENCED:
GOLD
WHAT HAPPENED:
Gold bulls hoping to creep closer to $1,800 an ounce found themselves more than $50 below that target at Friday’s close, after the head of the Federal Reserve signalled no immediate pause in the central bank’s inflation-busting rate hikes.
The yield on the benchmark 10-Year Treasury note edged towards Wednesday’s two-month high after Fed Chair Jerome Powell said the central bank will keep at “forceful” rate hikes until its fight against inflation is done.
The benchmark gold futures contract on New York’s Comex, December, settled at $1,762.90 per ounce, down $21.60, or 1.2%. For the week, December gold fell 0.7%.
The spot price of bullion, more closely followed than futures by some traders, was at $1,737.65 by 15:45 ET (19:45 GMT), down $21.11, or 1.2%. For the week, spot gold was down 0.6%.
GOLD is trading in the up channel; an upside will be seen in the coming days.
Oil Ends Up as Bulls Show ‘Selective Hearing’ to Fed Chief
WHAT IT HAD INFLUENCED:
CRUDE OIL
WHAT HAPPENED:
The head of the Federal Reserve says the central bank won’t back down from “forceful” U.S. rate hikes till it gets inflation back to its target of 2%, from current highs of above 8%.
The long-oil crowd seems to have a problem hearing Jerome Powell though.
Crude futures tumbled initially in both New York and London trading after Powell’s speech at the Fed’s all-important annual symposium on the economy. But by the close, oil was back in the positive as bulls bought the dips to prevent another negative close before the weekend.
New York-traded West Texas Intermediate, the benchmark for U.S. crude, settled up 54 cents, or 0.6%, at $93.06 per barrel, pulling back from the session low of $91.10. For the week, WTI showed a gain of 2.5%, after the previous week’s drop of 1.4%.
Brent crude, the London-traded global benchmark for oil, settled up $1.65, or 1.7%, at $100.99 per barrel. For the week, Brent was up 4.4%, versus the previous week’s slide of 1.5%.
WTI CRUDE OIL was trading in the down channel. There will be a upside in the coming week after the breakout upside.
Ethereum Falls 11% In Selloff
WHAT IT HAD INFLUENCED:
ETHEREUM
WHAT HAPPENED:
Ethereum was trading at $1,517.36 by 19:17 (23:17 GMT) on the Investing.com Index on Friday, down 10.50% on the day. It was the largest one-day percentage loss since August 19.
The move downwards pushed Ethereum’s market cap down to $189.26B, or 19.13% of the total cryptocurrency market cap. At its highest, Ethereum’s market cap was $569.58B.
Ethereum had traded in a range of $1,517.13 to $1,703.32 in the previous twenty-four hours.
Over the past seven days, Ethereum has seen a drop in value, as it lost 4.71%. The volume of Ethereum traded in the twenty-four hours to time of writing was $25.51B or 28.76% of the total volume of all cryptocurrencies. It has traded in a range of $1,517.1283 to $1,720.8405 in the past 7 days.
ETHEREUM is trading in the up channel; an upside will be seen in the coming days.
5 KEY EVENTS TO WATCH OUT
- Manufacturing PMI (Aug), U.K.
WHEN: WHAT IT INFLUENCES:
01st SEPTEMBER 2022 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.
- CB Consumer Confidence (Aug), U.S.
WHEN: WHAT IT INFLUENCES:
30th AUGUST 2022 USD and its subsequent pairs
WHAT’S HAPPENING: Conference Board (CB) Consumer Confidence measures the level of consumer confidence in economic activity. It is a leading indicator as it can predict consumer spending, which plays a major role in overall economic activity. Higher readings point to higher consumer optimism.
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.
- Unemployment Change (Aug), GERMANY
WHEN: WHAT IT INFLUENCES:
31st AUGUST 2022 EUR and its subsequent pairs
WHAT’S HAPPENING: German Unemployment Change measures the change in the number of unemployed people during the previous month.
A higher-than-expected reading ought to be taken as negative/bearish for the EUR, whereas a lower-than-expected reading should be taken as positive/bullish for the EUR.
- GDP (MoM) (Jun), CANADA
WHEN: WHAT IT INFLUENCES:
31st AUGUST 2022 CAD and its subsequent pairs
WHAT’S HAPPENING: Gross Domestic Product (GDP) measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. Canada releases fresh GDP data on a monthly basis.
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.
Retail Sales (MoM) (Jul), AUSTRALIA
WHEN: WHAT IT INFLUENCES:
28th AUGUST 2022 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.
EQUITIES IN THE COMING WEEK
- HP Inc (HPQ) to announce its Quarterly Results on 29th AUGUST 2022, EPS estimated to 1.04 per share while revenue estimated 15.82B.
- Baidu (BIDU) to announce its Quarterly Results on 30th AUGUST 2022, EPS estimated to 10.51 per share while revenue estimated 29.40B.
- Best Buy (BBY) to announce its Quarterly Results on 30th AUGUST 2022, EPS estimated to 1.34 per share while revenue estimated 10.33B.
- Broadcom (AVGO) to announce its Quarterly Results on 01st SEPTEMBER 2022, EPS estimated to 9.56 per share while revenue estimated 8.41B.
- DocuSign (DOCU) to announce its Quarterly Results on 02nd SEPTEMBER 2022, EPS estimated to 0.4309 per share while revenue estimated 602.72M.
TOP COMMODITIES IN THE COMING WEEK
GOLD
GOLD is trading in the up channel; an upside will be seen in the coming days.
SILVER
SILVER is trading in the up channel; an upside will be seen in the coming days.
WTI CRUDE OIL
WTI CRUDE OIL was trading in the down channel. There will be a upside in the coming week after the breakout upside.
TOP CRYPTO IN THE COMING WEEK
BTCUSD
BTCUSD was trading in the up channel. There will be a downside in the coming week after the breakout downside.
ETHEREUM
ETHEREUM is trading in the up channel; an upside will be seen in the coming days.
TOP CURRENCY IN THE COMING WEEK
EURUSD
EURUSD is trading in the down channel; an downside will be seen in the coming days.
GBPUSD
GBPUSD is trading in the down channel; an downside will be seen in the coming days.
EURJPY
EURJPY is trading in an up channel; an upside will be seen in the coming days.
TOP INDEX IN THE COMING WEEK
NIKKEI 225
NIKKEI 225 is trading in an up channel. The further upside will be seen in the coming week.
S&P 500
S&P 500 was trading in the up channel. There will be a downside in the coming week after the breakout downside.
DATA WATCH
