Weekly Technical Analysis with Candlestick Charts – 24 July 2022

Weekly Technical Analysis with Candlestick Charts – 24 July 2022

Technical Analysis

WEEKLY SNAPSHOT

    Claimant Count Change (Jun), U.K.

    WHEN:                                                                 WHAT IT HAD INFLUENCED:

19th JULY 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.

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

    Existing Home Sales (Jun), U.S.

    WHEN:                                                                 WHAT IT HAD INFLUENCED:

     20th JULY 2022                                                            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. 

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

Manufacturing PMI (Jul), GERMANY 

WHEN:                                                                WHAT IT HAD INFLUENCED:

22nd JULY 2022                                                           EUR and its subsequent pairs 

WHAT HAPPENED: 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.

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

Gold Has First Weekly Win in Six; Still Trapped in Low $1,700s

WHAT IT HAD INFLUENCED:

GOLD 

WHAT HAPPENED: Gold bulls clinched their first weekly win since early June as the yellow metal’s losing streak came to an end after five weeks in the red.

With an ounce remaining in the low $1,700 range, analysts said gold could be vulnerable to another dip into $1,600 territory next week as markets brace for the Federal Reserve’s July rate hike.

“Gold is starting to act like a safe-haven as weakening economic growth will force many central banks to abandon their aggressive tightening plans,” said Ed Moya, who heads U.S. research at online trading platform OANDA. “Gold might find resistance at the $1750 level, but if it doesn’t, not much will get in the way until the $1,800 level.”

Benchmark gold futures for August delivery on New York’s Comex settled up $14, or 0.8%, at $1,727.40 an ounce, after a plumbing near a 16-month low of $1,680.96 on Thursday.

GOLD is trading in the downward channel. The further downside will be seen in the coming week.

Oil Bulls Stare at 3rd Weekly Loss in U.S. Crude After Gasoline Pile-Up

WHAT IT HAD INFLUENCED:

CRUDE OIL

WHAT HAPPENED: 

Oil bulls faced their third weekly loss in U.S. crude as the massive gasoline inventory pile-up of the past fortnight continued to weigh, despite a weaker dollar helping some short-covering to the selling from earlier in the week.

Brent, the global benchmark for oil versus the West Texas Intermediate, or WTI, gauge for U.S. crude, did better, heading for its first positive week in six.

“It’s the weaker dollar that’s the story today and that’s helped oil cut some losses,” said John Kilduff, partner at New York energy hedge fund Again Capital. “But WTI is still the weaker link here, compared to Brent, and that’s because of the huge gasoline build we’ve had the past two weeks.”

U.S. gasoline stockpiles ballooned by about 9 million barrels over the past two weeks in the largest build since the near 14-million-barrel jump seen during the January 7th and January 15th weeks.

London-traded Brent settled Friday’s trade down 66 cents, or 0.6%, at $103.20 a barrel, after rising about $3 earlier to a session peak of $106.78 and dropping more than $2 to an intraday low of $101.50. 

For the week, Brent finished up 2.2%, ending a five-day losing streak that had set it back by about 17%. The global crude benchmark hit a near five-month low of $95.42 last week.

WTI CRUDE OIL is trading in the down channel. The further downside will be seen in the coming week.

ETH Shows More Signs of Profit Taking When Compared To BTC

WHAT IT HAD INFLUENCED:

ETHEREUM

WHAT HAPPENED: 

The crypto market is experiencing a small recovery as it finally crossed back to the $1 trillion mark. Bitcoin (BTC) and Ethereum (ETH) both made the best of this recovery and witnessed a surge in their respective prices.

Although both cryptos had a great rebound in July, ETH saw more signs of profit taking when compared to Bitcoin. The ratio between transactions in profit vs loss is very different for the two cryptos as ETH soared above its rival.

Ethereum’s highly-anticipated upgrade known as The Merge is also around the corner. Although there is no set date for the event to happen, developers hinted at a mid-September Merge.

This created some serious excitement in investors and ETH whales have been making it a priority to accumulate the token as the Merge creeps closer. This is one of the factors that pushed the price of ETH over the $1,500 mark.

ETHEREUM was trading in the up channel. The upside will be seen in the coming week after the breakout upside.

5 KEY EVENTS TO WATCH OUT

     CBI Industrial Trends Orders (Jul), U.K.

 WHEN:                                                                         WHAT IT INFLUENCES:

 25th JULY 2022                                                              GBP and its subsequent pairs

WHAT’S HAPPENING: The Confederation of British Industry (CBI) Industrial Trends Orders measures the economic expectations of the manufacturing executives in the U.K. It is a leading indicator of business conditions. A level above zero indicates order volume is expected to increase; a level below zero indicates expectations are for lower volumes.

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 (Jul), U.S.

WHEN:                                                                          WHAT IT INFLUENCES:

26th JULY 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.

    CPI (QoQ) (Q2), AUSTRALIA 

WHEN:                                                                         WHAT IT INFLUENCES:

26th JULY 2022                                                            AUD 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 AUD, whereas a lower-than-expected reading should be taken as negative/bearish for the AUD.

CPI (MoM) (Jul), GERMANY

WHEN:                                                                         WHAT IT INFLUENCES:

28th JULY 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.

CPI (YoY) (Jul), EURO ZONE

WHEN:                                                                           WHAT IT INFLUENCES:

29th JULY 2022                                                                       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. Whirlpool (WHR) to announce its Quarterly Results on 25th JULY 2022, EPS estimated to 5.37 per share while revenue estimated 5.29B. 
  2. Microsoft (MSFT) to announce its Quarterly Results on 26th JULY 2022, EPS estimated to 2.3 per share while revenue estimated 52.49B.
  3. 3M (MMM) to announce its Quarterly Results on 26th JULY 2022, EPS estimated to 2.44 per share while revenue estimated 8.63B.
  4. Meta Platforms (META) to announce its Quarterly Results on 27th JULY 2022, EPS estimated to 2.58 per share while revenue estimated 29.04B.
  5. Boeing (BA) to announce its Quarterly Results on 27th JULY 2022, EPS estimated to -0.1314 per share while revenue estimated 17.62B.

TOP COMMODITIES IN THE COMING WEEK

GOLD

GOLD is trading in the downward channel. The further downside will be seen in the coming week. 

SILVER

SILVER was trading in the down 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 was trading in the up channel. The upside will be seen in the coming week after the breakout upside.   

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 is trading in an up channel. The further upside will be seen in the coming week.

GBPJPY

GBPJPY is trading in the up channel. The downside will be further in the coming week if GBPJPY can sustain below the channel after the breakout.

TOP INDEX IN THE COMING WEEK

DOW JONES

DOW JONES is trading in the up channel; further upside will be seen in the coming days.

HANG SENG

HANG SENG is trading in the down channel; further downside will be seen in the coming days.

     DATA WATCH

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