Weekly Technical Analysis with Candlestick Charts – 20 March 2022

Weekly Technical Analysis with Candlestick Charts – 20 March 2022

Technical Analysis

WEEKLY SNAPSHOT

    Claimant Count Change (Feb), U.K.

     WHEN:                                              WHAT IT HAD INFLUENCED:

15th MARCH 2022                                   GBP and its subsequent pairs

WHAT HAPPENED: Claimant Count Change measures the change in the number of unemployed people in the U.K. during the reported month. A rising trend indicates weakness in the labor market, which has a trickle-down effect on consumer spending and economic growth.

GBPJPY is trading in the up channel. Further upside can be seen in the coming week.

     Retail Sales (MoM) (Feb), U.S.

     WHEN:                                              WHAT IT HAD INFLUENCED:

     16th MARCH 2022                                   USD and its subsequent pairs

WHAT HAPPENED: Retail Sales measure the change in the total value of sales at the retail level. It is the foremost indicator of consumer spending, which accounts for the majority of overall economic activity.

USDSEK is currently in the downward channel. The further downside can be seen in the coming week.

Employment Change (Feb), EURO ZONE 

WHEN:                                            WHAT IT HAD INFLUENCED:

16th MARCH 2022                                EUR 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.

EURNOK is currently in the downward channel. The further downside can be seen in the coming week.

Gold in Biggest Weekly Loss Since Nov. on Fed

WHAT IT HAD INFLUENCED:

GOLD 

WHAT HAPPENED: The uncertainty pushed gold down for a second straight week, to its biggest weekly decline in percentage terms, since November.

Still, pressure on prices combined with concerns about fallout from the Russia-Ukraine war played up gold’s dual economic-political hedge to bring it back above the $1,900 support it briefly broke earlier in the week.

The most-active gold futures contract on New York’s Comex, April, settled down $13.90, or 0.7%, at $1,929.30 an ounce. For the week, the benchmark gold futures contract lost 2.8%, its most since the week to Nov. 19, 2001.

The Federal Reserve approved this week a 25-basis point increase at its March 15-16 meeting, its first increase since the outbreak of the Covid-19 crisis in March 2020. The central bank also cautioned that there could be as many as six more rate hikes this year, based on the number of calendar meetings for its policy-making Federal Open Market Committee, or FOMC.

GOLD was trading in the upward channel. Further downside will be seen after the breakout downside.

Oil in 2nd Weekly Loss, But a Barrel Still Above $100

WHAT IT HAD INFLUENCED:

CRUDE OIL

WHAT HAPPENED: 

Oil prices logged a second weekly loss as the Russia-Ukraine war premium dipped from its highs of two weeks ago. But keeping the market below $100 a barrel appears difficult, with neither side backing down from its tough stance despite being engaged in peace talks.

Earlier this week, oil prices fell almost as dramatically as they had risen previously, with U.S. crude reaching below $94 a barrel from a Ukraine-invasion high of $130.50, amid heightened efforts of diplomacy by negotiators and mediators in the conflict. 

By Thursday though, it was clear that such peace overtures weren’t working as well as initially thought, and crude benchmarks sprung back to above $100.

In Friday’s trade, U.S. crude’s West Texas Intermediate, or WTI, benchmark settled up $1.72, or 1.7%, at $104.70 a barrel. For the week, WTI was down 4.2%, after the previous week’s decline of 5.5%.

London-traded Brent, the global benchmark for oil, settled up $1.29, or 1.2%, at $107.93. Brent fell below $97 on Wednesday, compared with a March 7 high of $139.13. Like WTI, it was down 4.2% on the week, following through with the previous week’s drop of 4.6%.

BRENT CRUDE OIL is trading in the up channel. Further upside can be seen in the coming week.

Ethereum Staking Queue Nears All-Time High Ahead Of Mainnet Merge

WHAT IT HAD INFLUENCED:

ETHEREUM

WHAT HAPPENED: 

Ethereum is well on its way to the Merge as more milestones are met. The move to proof of stake will no doubt be a game-changer for the blockchain. 

So as the day for the merge draws closer, users of the network have been upping their activity in recent times. One of the places where Ethereum has recorded an uptick has been the staking queue which is now nearing its previous all-time high. 

Ethereum Staking Queue Crosses 300,000 The Ethereum staking queue is a good indicator of how users of the network are looking at it. When this is low, investors may be more way and not want to stake their coins on the network. 

However, when this number begins to go up, it signals a number of things for Ethereum, among them, being that users are looking more positively at it.

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

5 KEY EVENTS TO WATCH OUT

    CPI (YoY) (Feb), U.K.

WHEN:                                                               WHAT IT INFLUENCES:

23rd MARCH 2022                                            GBP 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 GBP, whereas a lower-than-expected reading should be taken as negative/bearish for the GBP.

      Core Durable Goods Orders (MoM) (Feb), U.S.

WHEN:                                                                WHAT IT INFLUENCES:

24th MARCH 2022                                                    USD and its subsequent 

                                                                             Pairs

WHAT’S HAPPENING: Core Durable Goods Orders measures the change in the total value of new orders for long lasting manufactured goods, excluding transportation items. A higher reading indicates increased manufacturing activity.

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.

    Ifo Business Climate Index, GERMANY 

WHEN:                                                               WHAT IT INFLUENCES:

25th MARCH 2022                                            EUR and its subsequent 

                                                                            Pairs

WHAT’S HAPPENING: The German Ifo Business Climate Index rates the current German business climate and measures expectations for the next six months. It is a composite index based on a survey of manufacturers, builders, wholesalers and retailers.

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.

Services PMI, JAPAN

WHEN:                                                               WHAT IT INFLUENCES:

23rd MARCH 2022                                            JPY and its subsequent 

                                                                            Pairs 

WHAT’S HAPPENING: The survey covers transport & communication, financial intermediation, business services, personal services, computing & IT and hotels & restaurants. 

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.

Wholesale Sales (MoM), CANADA

WHEN:                                                               WHAT IT INFLUENCES:

22nd MARCH 2022                                                  CAD and it’s subsequent 

                                                                            pairs

WHAT’S HAPPENING: Wholesale Sales measures the change in the total value of sales at the wholesale level. It is a leading 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. Nike (NKE) to announce its Quarterly Results on 21st MARCH 2022, EPS estimated to 0.71 per share while revenue estimated 10.63B. 

2. Adobe (ADBE) to announce its Quarterly Results on 22nd MARCH 2022, EPS estimated to 3.34 per share while revenue estimated 4.24B.

3. General Mills (GIS) to announce its Quarterly Results on 23rd MARCH 2022, EPS estimated to 0.78 per share while revenue estimated 4.56B.

4. Synnex (SNX) to announce its Quarterly Results on 24th MARCH 2022, EPS estimated to 2.67 per share while revenue estimated 15.19B.

5. Movado (MOV) to announce its Quarterly Results on 24th MARCH 2022, EPS estimated to 0.80 per share while revenue estimated 191M.

TOP COMMODITIES IN THE COMING WEEK

GOLD

Technical Analysis

GOLD was trading in the upward channel. Further downside will be seen after the breakout downside. 

SILVER

Technical Analysis

SILVER was trading in the upward channel. Further downside will be seen after the breakout downside.

BRENT CRUDE OIL

Technical Analysis

BRENT CRUDE OIL is trading in the up channel. Further upside can be seen in the coming week.

TOP CRYPTO IN THE COMING WEEK

BTC/USD

Technical Analysis

BTCUSD is trading in the up channel; upside will be seen in the coming days. 

LITECOIN USD

Technical Analysis

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

 TOP CURRENCY IN THE COMING WEEK

EUR/USD

Technical Analysis

EURUSD was trading in the downward channel. After the breakout upside can be seen if it sustains above the channel.

GBP/USD

Technical Analysis

GBPUSD was trading in the downward channel. The further downside can be seen in the coming week after the breakout downside.

USD/CHF

Technical Analysis

USDCHF is in the upward channel. A further upside can be seen in the coming week.

TOP INDEX IN THE COMING WEEK

FTSE 100

Technical Analysis

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

S&P 500

Technical Analysis

S&P 500 was trading in the down channel; further upside will be seen in the coming days after the breakout upside.

DATA WATCH

Technical Analysis

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