WEEKLY TECHNICAL ANALYSIS WITH CANDLESTICK CHARTS – 04 JULY 2022

WEEKLY TECHNICAL ANALYSIS WITH CANDLESTICK CHARTS – 04 JULY 2022

Technical Analysis

WEEKLY SNAPSHOT

    GDP (QoQ) (Q1), U.K.

    WHEN:                                                                 WHAT IT HAD INFLUENCED:

30th JUNE 2022                                                            GBP and its subsequent pairs

WHAT HAPPENED: Gross Domestic Product (GDP) gauges the inflation-adjusted value of all goods and services produced within the economy. It is the most comprehensive measure of economic activity and an important indicator of economic health.

GBPCAD is trading in the down channel. Further downside can be seen in the coming week.

     GDP (QoQ) (Q1), U.S.

     WHEN:                                                                WHAT IT HAD INFLUENCED:

     29th JUNE 2022                                                            USD and its subsequent pairs

WHAT HAPPENED: Gross Domestic Product (GDP) measures the annualised change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy’s health. 

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

CPI (YoY) (Jun), EURO ZONE

WHEN:                                                               WHAT IT HAD INFLUENCED:

01st JULY 2022                                                            EUR and its subsequent pairs 

WHAT HAPPENED: The Consumer Price Index (CPI) measures the change in the prices of goods and services contained in a basket of consumer items. The Central bank pays very close attention to this figure in its role of maintaining price stability.

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

Gold Hit 7-Month Low as India Tax Hike Adds to Fed Rate Cudgel

WHAT IT HAD INFLUENCED:

GOLD 

WHAT HAPPENED: For gold, the Fed doesn’t seem to be its only nemesis: it’s also Indian tax authorities.

Bullion’s value took a further dive to briefly hit seven-month lows on Friday after the government in New Delhi raised import taxes on gold to support the battered rupee as trading for July opened.

India, the world’s second biggest bullion consumer, raised its basic import duty on gold to 12.5% from 7.5%. The move will immediately affect demand, even though the third quarter usually sees strong physical buying amid festivals, Ajay Kedia, director at Kedia Commodities in Mumbai, said in comments carried by Reuters.

India and China alternate as the biggest buyers of gold and any policy move by the two on the metal typically gets traders in the space flustered.

Bullion bulls were wounded for a third straight week by the central bank’s rate cudgel as policy-makers at the central bank showed no backing down in their aim to tame the inflation beast by doubling the Fed funds before the end of the year.

Front-month gold futures for August on New York’s Comex settled Friday’s trade down $5.80, or 0.3%, at $1,801.50 an ounce. Earlier in the session, August gold tumbled to $1,873.45 — its lowest since the $1,781 level plumbed on Dec. 9.

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

Oil rises more than 2% as supply outages outweigh recession fears

WHAT IT HAD INFLUENCED:

CRUDE OIL

WHAT HAPPENED: 

Oil prices gained more than 2% on Friday as supply outages in Libya and expected shutdowns in Norway outweighed expectations that an economic slowdown could dent demand.

Brent crude futures settled at $111.63 a barrel, rising $2.60, or 2.4%. West Texas Intermediate crude (WTI) settled at $108.43 a barrel, gaining $2.67, or 2.5%.

WTI and Brent traded at about 70% and 77%, respectively, of the previous session’s volumes ahead of the U.S. Fourth of July holiday.

For the week, Brent lost 1.3%, while WTI rose 0.8%. For June, both benchmarks had ended the month lower for the first time since November.

Prices rose on Friday despite the release of industry data showing U.S manufacturing activity slowed more than expected last month, adding to evidence that the country’s economy was cooling as the Federal Reserve tightens monetary policy.

WTI CRUDE OIL was trading in up channel. Further downside can be seen in the coming week after the breakout.

Total Number of Unique XRP Addresses Crosses 200,000

WHAT IT HAD INFLUENCED:

RIPPLE 

WHAT HAPPENED: 

Ripple hit a 2-year milestone as the number of unique addresses on the XRP network exploded, crossing above 200,000. This is the first time that it has crossed this number since February 2020, according to data released by Santiment.

The number of unique addresses surged to a 2-year level after being in a consistent decline since February 28, 2022. During this period, the price of XRP also went downward.

Looking at the current price of XRP, it has experienced a 3.29% drop over the last 24 hours to take the price down to $0.3154. This price dip has added to the negative weekly performance of XRP, as its price is now down 13.81% over the last seven days. 

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

5 KEY EVENTS TO WATCH OUT

     Composite PMI (Jun), U.K.

 WHEN:                                                                         WHAT IT INFLUENCES:

 05th JULY 2022                                                              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.

      ADP Nonfarm Employment Change (Jun), U.S.

WHEN:                                                                           WHAT IT INFLUENCES:

07th JULY 2022                                                               USD and its subsequent pairs

WHAT’S HAPPENING: The ADP National Employment Report is a measure of the monthly change in non-farm, private employment, based on the payroll data of approximately 400,000 U.S. business clients. The release, two days ahead of government data, is a good predictor of the government’s non-farm payroll report. The change in this indicator can be very volatile.

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.

     RBA Interest Rate Decision (Jul), AUSTRALIA

WHEN:                                                                         WHAT IT INFLUENCES:

05th JULY 2022                                                            AUD and its subsequent pairs

WHAT’S HAPPENING: Reserve Bank of Australia (RBA) board members come to a consensus on where to set the rate. Traders watch interest rate changes closely as short-term interest rates are the primary factor in currency valuation.

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) (May), JAPAN

WHEN:                                                                         WHAT IT INFLUENCES:

06th JULY 2022                                                             EUR 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 JPY, whereas a lower-than-expected reading should be taken as negative/bearish for the JPY.

Employment Change (Jun), CANADA

WHEN:                                                                           WHAT IT INFLUENCES:

08th JULY 2022                                                                       CAD 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 CAD, whereas a lower-than-expected reading should be taken as negative/bearish for the CAD.

EQUITIES IN THE COMING WEEK

  1. WD-40 (WDFC) to announce its Quarterly Results on 07th JULY 2022, EPS estimated to 1.28 per share while revenue estimated 142.8M. 
  2. Levi Strauss A (LEVI) to announce its Quarterly Results on 07th JULY 2022, EPS estimated to 0.2253 per share while revenue estimated 1.43B.
  3. Aeon ADR (AONNY) to announce its Quarterly Results on 06th JULY 2022, EPS estimated to 0.0471 per share while revenue estimated 17.51B.
  4. Simulations Plus (SLP) to announce its Quarterly Results on 06th JULY 2022, EPS estimated to 0.175 per share while revenue estimated 14.34B.

AZZ (AZZ) to announce its Quarterly Results on 5th JULY 2022, EPS estimated to 0.9867 per share while revenue estimated 261.01M.

TOP COMMODITIES IN THE COMING WEEK

GOLD

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

SILVER

SILVER is trading in the downward channel. Further downside can be seen in the coming week.

WTI CRUDE OIL

WTI CRUDE OIL was trading in up channel. Further downside can be seen in the coming week after the breakout.

TOP CRYPTO IN THE COMING WEEK

BTCUSD

BTCUSD is trading in the down channel; downside will be seen in the coming days. 

ETHEREUM

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

 TOP CURRENCY IN THE COMING WEEK

EURUSD

EURUSD was trading in the up channel; further downside can be seen in the coming days after the breakout.

GBPUSD

GBPUSD was trading in the up channel; further downside can be seen in the coming days after the breakout.

EURGBP

EURGBP is currently in an upward channel. The further upside can be seen in the coming week.

TOP INDEX IN THE COMING WEEK

FTSE 100

FTSE 100 is trading in the up channel; further upside will be seen in the coming days.

DAX 40

DAX 40 is trading in the down channel; further downside will be seen in the coming days.

DATA WATCH

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