Weekly Technical Analysis with Candlestick Charts – 07 August 2022
07 Aug 2022
WEEKLY SNAPSHOT
Manufacturing PMI (Jul), U.K.
WHEN: WHAT IT HAD INFLUENCED:
01st AUGUST 2022 GBP and its subsequent pairs
WHAT HAPPENED: 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.
GBPAUD is currently in the upward channel. Further upside can be seen in the coming week.
ISM Non-Manufacturing PMI (Jul), U.S.
WHEN: WHAT IT HAD INFLUENCED:
03rd AUGUST 2022 USD and its subsequent pairs
WHAT HAPPENED: The Institute of Supply Management (ISM) Non-Manufacturing Purchasing Managers’ Index (PMI) (also known as the ISM Services PMI) report on Business, a composite index is calculated as an indicator of the overall economic condition for the non-manufacturing sector.
USDMXN is currently in the downward channel. Further downside can be seen in the coming week.
Employment Change (Jul), CANADA
WHEN: WHAT IT HAD INFLUENCED:
05th AUGUST 2022 CAD 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.
CADCHF is currently in the downward channel. Further downside can be seen in the coming week.
Gold Holds its Own After Wrecker-Ball of U.S. Jobs Report, Dropping Just 1%
WHAT IT HAD INFLUENCED:
GOLD
WHAT HAPPENED:
As those in the gold market began Friday’s trading, the ominous question was whether the yellow metal’s prices will survive another wrecker-ball of a U.S. jobs report?
While any crystal ball divination on gold should be taken with a grain of salt, Friday’s performance of both futures on New York’s Comex and bullion in the aftermath of the U.S. nonfarm payrolls report for July suggested that longs in the game might not get crushed yet.
U.S. employers added 528,000 jobs last month, according to the report that smashed economists’ forecasts for an addition of just 250,000 posts — making the Federal Reserve’s already arduous task of curbing inflation even harder.
Yet gold, which typically encounters a meltdown in any situation that calls for stiff Fed rate hikes — and a U.S. jobs report that’s more than twice stronger than forecast certainly qualifies as one of those situations — held relatively well under the circumstances.
After tumbling to an intraday low of $1,780.30 — which was still higher than Thursday’s bottom — the benchmark gold futures contract on New York’s Comex, December, settled down just a notch above that, at $1,780.50, down $15.70, or 0.9%. For the week, Comex gold was basically flat.
GOLD is trading in an upward channel. The further upside will be seen in the coming week.
Oil prices end week on multi-month lows on recession fears
WHAT IT HAD INFLUENCED:
CRUDE OIL
WHAT HAPPENED:
Oil prices settled higher on Friday, recouping some of this week’s losses on strong U.S. job growth data, but closed the week at their lowest levels since February, rattled by worries a recession could hit fuel demand.
Brent crude settled up 80 cents to $94.92 a barrel, 11% off last Friday’s settlement. U.S. West Texas Intermediate crude settled up 47 cents to $89.01, off 8% in the week.
U.S. job growth unexpectedly accelerated in July as nonfarm payrolls increased by 528,000 jobs, the largest gain since February, the U.S. Labor Department reported.
“This is strong economic data that’s supporting the oil market rise today,” said Bob Yawger, director of energy futures at Mizuho.
Oil traders this week have fretted about inflation, economic growth and demand, but signs of tight supply kept a floor under prices.
The number of oil rigs, an early indicator of future output, fell seven to 598 in the week to Aug. 5, the first weekly decline in 10 weeks, energy services firm Baker Hughes Co BKR.O said in its closely followed report on Friday.
Recession worries have intensified since the Bank of England’s warning on Thursday of a drawn-out downturn after it raised interest rates by the most since 1995.
WTI CRUDE OIL is trading in the down channel. The further downside will be seen in the coming week.
Jack Dorsey-led Block posts $1.5B in Q2 profits, BTC revenue down
WHAT IT HAD INFLUENCED:
BITCOIN
WHAT HAPPENED:
Former Twitter CEO Jack Dorsey’s digital payments firm Block Inc. saw its year-on-year (YoY) profits soar 29% to $1.47 billion in Q2, though its Bitcoin (BTC) business slumped on decreased customer demand and a fall in Bitcoin prices.
The financial services firm primarily generates Bitcoin revenue by providing BTC trading services via its digital payment’s application Cash App.
Block Inc. noted the business generated $1.79 billion of Bitcoin revenue in the quarter, down 34% YoY, while Bitcoin gross profit was only $41 million, which suggests it may be a high-cost venture to provide Bitcoin services to its customers.
However, Block Inc. emphasized that the BTC profit slump doesn’t reflect the broader performance of the business. It also noted that BTC profits will likely fluctuate over time as a result of “changes in customer demand or the market price of Bitcoin.”
Bitcoin is trading in the up channel; an upside will be seen in the coming days.
5 KEY EVENTS TO WATCH OUT
GDP (YoY) (Q2), U.K.
WHEN: WHAT IT INFLUENCES:
12st AUGUST 2022 GBP 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. It is the broadest measure of economic activity and the primary indicator of the economy’s health.
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.
CPI (YoY) (Jul), U.S.
WHEN: WHAT IT INFLUENCES:
10th AUGUST 2022 USD 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 USD, whereas a lower-than-expected reading should be taken as negative/bearish for the USD.
Current Account n.s.a. (Jun), JAPAN
WHEN: WHAT IT INFLUENCES:
07th AUGUST 2022 JPY and its subsequent pairs
WHAT’S HAPPENING: The Current Account index measures the difference in value between exported and imported goods, services and interest payments during the reported month. The goods portion is the same as the monthly Trade Balance figure
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.
NAB Business Confidence (Jul), AUSTRALIA
WHEN: WHAT IT INFLUENCES:
08th AUGUST 2022 AUD and its subsequent pairs
WHAT’S HAPPENING: The National Australia Bank (NAB) Business Confidence Index rates the current level of business conditions in Australia. Changes in business sentiment can be an early signal of future economic activity such as spending, hiring, and investment.
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 (MoM) (Jul), GERMANY
WHEN: WHAT IT INFLUENCES:
10th AUGUST 2022 EUR and its subsequent pairs
WHAT’S HAPPENING: The German Consumer Price Index (CPI) measures the changes in the price of goods and services purchased by consumers.
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
- Bentley (BSY) to announce its Quarterly Results on 09th AUGUST 2022, EPS estimated to 0.1775 per share while revenue estimated 268.52M.
- Walt Disney (DIS) to announce its Quarterly Results on 10th AUGUST 2022, EPS estimated to 0.9762 per share while revenue estimated 20.99B.
- NetEase (NTES) to announce its Quarterly Results on 10th AUGUST 2022, EPS estimated to 7.24 per share while revenue estimated 23.24B.
- Brookfield Asset Management (BAM) to announce its Quarterly Results on 11th AUGUST 2022, EPS estimated to 0.6809 per share while revenue estimated 1.21B.
- Broadridge (BR) to announce its Quarterly Results on 12th AUGUST 2022, EPS estimated to 2.61 per share while revenue estimated 1.66B.
TOP COMMODITIES IN THE COMING WEEK
GOLD
GOLD is trading in an upward channel. The further upside will be seen in the coming week.
SILVER
SILVER was trading in the up channel. The upside will be seen in the coming week after the breakout upside.
WTI CRUDE OIL
WTI CRUDE OIL is trading in the down channel. The further downside will be seen in the coming week.
TOP CRYPTO IN THE COMING WEEK
BTCUSD
BTCUSD is trading in the up channel; an upside will be seen in the coming days.
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 an up channel. The further upside will be seen in the coming week.
GBPUSD
GBPUSD was trading in the up channel. There will be a downside in the coming week after the breakout downside.
EURGBP
EURGBP is trading in the down channel. The further downside will be seen in the coming week.
TOP INDEX IN THE COMING WEEK
NASDAQ 100
NASDAQ 100 was trading in the up channel; further upside will be seen in the coming days after the breakout upside.
S&P 500
S&P 500 is trading in the up channel; further upside will be seen in the coming days.
DATA WATCH
