Weekly Technical Analysis with Candlestick Charts – 27 March 2022

Weekly Technical Analysis with Candlestick Charts – 27 March 2022

Technical Analysis

WEEKLY SNAPSHOT

    CPI (YoY) (Feb), U.K.

     WHEN:                                              WHAT IT HAD INFLUENCED:

23rd MARCH 2022                                   GBP and its subsequent pairs

WHAT HAPPENED: 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.

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

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

     WHEN:                                              WHAT IT HAD INFLUENCED:

     24th MARCH 2022                                   USD and its subsequent pairs

WHAT HAPPENED: 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.

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

Ifo Business Climate Index, EURO ZONE 

WHEN:                                            WHAT IT HAD INFLUENCED:

25th MARCH 2022                                EUR and its subsequent pairs 

WHAT HAPPENED: 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.

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

Gold Dips as Yields Spike, but up 1% on Week Amid Geopolitics, Inflation Scare

WHAT IT HAD INFLUENCED:

GOLD 

WHAT HAPPENED: A spike in U.S. Treasury yields sent gold prices skidding on Friday, although the yellow metal held on to a weekly gain of more than 1% on the back of geopolitical tensions fed by the war in Ukraine and inflation concerns that had Americans more worried than during the 1980s and 2008 recessions.

The most-active gold futures contract on New York’s Comex, April, settled the day’s trade down $8, or 0.4%, at $1,954.20 an ounce. For the week, the benchmark gold futures contract was up $24.90, or 1.3%.

Friday’s slide in gold came as the 10-year U.S. Treasury note rose by 4.8%, adding to Thursday’s 3.5% gain and pressuring bullion which is non-yielding. After a tumble last week on the Fed’s modest first pandemic-era rate hike of 25 basis points, yields have started climbing again as central bank officials suggest more aggressive hikes of 50 basis points in the future to contain inflation at 40-year highs.

Gold typically thrives in an environment of heightened political and economic fear, and the war in Ukraine and runaway U.S. price pressures had fed both of these.

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

Oil Back at $120 After Jeddah Attack; Finishes with Best Week in Four

WHAT IT HAD INFLUENCED:

CRUDE OIL

WHAT HAPPENED: 

A missile strike at a Saudi Arabian oil storage depot in Jeddah sent crude prices up more than 1% Friday, reversing a 2% drop from earlier in the day and giving the market its best weekly gain since the Russian invasion of Ukraine.

Yemeni Houthi rebels appeared to be behind the attack, with a spokesperson for the group saying it “would be announcing more details on a wide operation in Saudi Arabia” later in the day. 

London-traded Brent, the global benchmark for oil, settled up $1.62, or 1.4%, at $120.65 per barrel. It had fallen more than 2% earlier, touching a session low of $115.21.

For the week, Brent was up 11.8% after accounting for other price spikes on Monday and Wednesday. It was Brent’s biggest weekly gain since the 20% rally in the week that marked the start of Russia’s Feb. 24 invasion of Ukraine.

U.S. crude’s West Texas Intermediate, or WTI, benchmark settled up $1.56, or 1.4%, at $113.90. WTI was down to as much as $108.77 earlier. For the week, the US crude benchmark rose 8.8%.

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

Cryptocurrency Market Recovers After Few Months Bearish

WHAT IT HAD INFLUENCED:

BITCOIN

WHAT HAPPENED: 

Currently, the bullish uptrend appears to be a result of Russia’s statement that the country might accept Bitcoin from allied countries as a mode of payment for oil and other resources.

Moreover, Bitcoin (BTC) leads the market with other cryptocurrencies that are green for the last 24-hours. At press time, BTC, the largest cryptocurrency, trades at $44,155.57, up by 2.64% in the last 24 hours. Meanwhile, Ethereum (ETH), the second-largest cryptocurrency by market capitalization, also increased by 3.32%, trading at $3,143.69.

Among other major coins, Cardano (ADA) climbed by 3.67% at $1.15, Algorand (ALGO) up by 6.11% at $0.9066, while Binance Coin (BNB) traded at $414.47 up by 1.67%. Also joining the trend is Solana (SOL), which increased by 6.89% at $103.38, and Polkadot (DOT) which is trading higher by 1.13% at $21.15, at the time of writing.

Additionally, the famous meme coin Dogecoin (DOGE) rose by 0.69% at $0.1359. LIkewise, Rival Shiba Inu (SHIB) also rose by 0.39% at $0.00002464.

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

5 KEY EVENTS TO WATCH OUT

    GDP (QoQ) (Q4), U.K.

WHEN:                                                               WHAT IT INFLUENCES:

31st MARCH 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.

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

WHEN:                                                                WHAT IT INFLUENCES:

30th MARCH 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.

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.

    Manufacturing PMI (Mar), GERMANY 

WHEN:                                                               WHAT IT INFLUENCES:

01st APRIL 2022                                                EUR and its subsequent 

                                                                            Pairs

WHAT’S HAPPENING: 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.

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.

Tankan Large Manufacturers Index (Q1), JAPAN

WHEN:                                                               WHAT IT INFLUENCES:

31st MARCH 2022                                            JPY and its subsequent 

                                                                            Pairs 

WHAT’S HAPPENING: The Tankan Large Manufacturing Index rates the relative level of general business conditions in the manufacturing sector. On the index, a level above zero indicates improving conditions; below indicates worsening conditions. 

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.

GDP (MoM) (Jan), CANADA

WHEN:                                                               WHAT IT INFLUENCES:

31st MARCH 2022                                                  CAD and it’s 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.

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. Micron (MU) to announce its Quarterly Results on 29th MARCH 2022, EPS estimated to 1.98 per share while revenue estimated 7.53B. 

2. BioNTech (BNTX) to announce its Quarterly Results on 30th MARCH 2022, EPS estimated to 7.44 per share while revenue estimated 3.92B.

3. Array (ARRY) to announce its Quarterly Results on 01st APRIL 2022, EPS estimated to -0.0279 per share while revenue estimated 214.13M.

4. Bassett (BSET) to announce its Quarterly Results on 31st MARCH 2022, EPS estimated to 0.36 per share while revenue estimated 110.14M.

5. BlackBerry (BB) to announce its Quarterly Results on 31st MARCH 2022, EPS estimated to -0.0436 per share while revenue estimated 179.95M.

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

BTCUSD

Technical Analysis

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

ETHEREUM

Technical Analysis

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

 TOP CURRENCY IN THE COMING WEEK

EURUSD

Technical Analysis

EURUSD is trading in the downward channel. The further downside can be seen in the coming week.

GBPUSD

Technical Analysis

GBPUSD is trading in the upward channel. The further upside can be seen in the coming week.

EURJPY

Technical Analysis

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

TOP INDEX IN THE COMING WEEK

NASDAQ 100

Technical Analysis

NASDAQ 100 was trading in the downward channel. Further upside will be seen after the breakout upside. 

DOW JONES

Technical Analysis

DOW JONES was trading in the down channel; further upside will be seen in the coming days after the breakout upside.

DATA WATCH

Technical Analysis

About Author