Weekly Global Markets Technical Analysis Report – 20 June 2021

Weekly Global Markets Technical Analysis Report – 20 June 2021

  Fed Interest Rate Decision, U.S.

    WHEN:                                               WHAT IT HAD INFLUENCED:

16th JUNE 2021                                        USD and its subsequent pairs

WHAT HAPPENED: Federal Open Market Committee (FOMC) members vote on where to set the rate. Traders watch interest rate changes closely as short-term interest rates are the primary factor in currency valuation. 

USDMXN is trading in an uptrend. A further upside can be seen in the coming days.

     Claimant Count Change (May), U.K.

     WHEN:                                              WHAT IT HAD INFLUENCED:

     15th JUNE 2021                                        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 labour market, which has a trickle-down effect on consumer spending and economic growth.

GBPJPY is trading in the downtrend, further downside can be seen in the coming days.

Employment Change (May), AUSTRALIA  

WHEN:                                              WHAT IT HAD INFLUENCED:

16th JUNE 2021                                        AUD 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.

AUDUSD is trading in the downtrend, further downside can be seen in the coming days.

Gold Suffers Worst Week in 15 Months After Fed Drama

WHAT IT HAD INFLUENCED:

GOLD 

WHAT HAPPENED: Gold bulls suffered their worst week since the 2020 Covid outbreak as prices fell almost 6% on the Federal Reserve’s expedited timetable for rate hikes and stimulus tapering.

The moves generated fear beyond the necessary which played out well for the yellow metal’s bears.

Front-month gold futures on New York’s Comex settled at $1,769 per ounce on Friday, down $5.80, or 0.3%. For the week, the decline was $110, or 5.9%, the biggest drop in Comex gold since the week ended March 6, 2020. The loss came after a seven-week low of $1,768 set for the benchmark gold futures contract on Thursday.

The spot price of gold was at $1,765.53 by 4:00 PM ET (20:00 GMT). That was down by $7.78, or 0.4%, on the day, and off by $111, or almost 6%, on the week. 

GOLD was trading in the up channel; after breaking the channel downside is seen and it can further deepen in the coming days.

Oil up 4th Straight Week, U.S. Pump Prices at 7-Year High 

WHAT IT HAD INFLUENCED:

CRUDE OIL

WHAT HAPPENED: 

Global oil markets closed up for a fourth straight week on Friday in a pre-summer rally based sometimes more on demand hype and inflation talk than on consumption, with U.S. fuel usage remaining tepid while Covid infections in the U.K. hit four-month highs.

West Texas Intermediate crude, the benchmark for U.S. oil, settled at $71.64 per barrel, up 60 cents, or 0.8%. For the week, WTI gained 1.2% after matching a 2018 high of $72.99 on Wednesday.

Brent crude, which acts as the global benchmark for oil, finished up 43 cents, or 0.6%, at $73.51 per barrel. For the week, Brent was on track to rose 1.1%, after it matched a 2019 peak of $74.96 on Wednesday. 

WTI CRUDE OIL was trading in the up channel; after breaking the channel it had formed the Morning Doji Star pattern which indicates a bullish reversal pattern.

Bitcoin Whales Accumulated Over $350 Billion Since BTC’s Price Plunged Last Month 

WHAT IT HAD INFLUENCED:

BITCOIN

WHAT HAPPENED: Bitcoin whales have been accumulating more BTC ever since its price plunged last month. Over the last 25 days, whales accumulated a whopping 90,000 BTC, at press time worth over $350 billion.

According to cryptocurrency analytics firm Santiment, large bitcoin holders with between 100 and 10,000 BTC in their wallets – between $3.9 million and $392 million – started accumulating after BTC’s steep price drop and now account for 48.7% of bitcoin’s supply.

Bitcoin whales’ buying spree placed them at a seven-week high for the amount of BTC they hold, with these addresses now owning over 9.11 million coins – the figure is down a few percentage points from their mid-April high.

BTCUSD is trading in the parallel channel, further upside can be seen if it breaks the channel upside and vice-versa.

5 KEY EVENTS TO WATCH OUT

     Manufacturing Purchasing Managers Index (PMI), U.K.

 WHEN:                                                              WHAT IT INFLUENCES:

 23rd JUNE 2021                                                   GBP and its subsequent 

                                                                             pairs

WHAT’S HAPPENING: 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.

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.

      New Home Sales, U.S.

WHEN:                                                                WHAT IT INFLUENCES:

23rd JUNE 2021                                                       USD and its subsequent 

                                                                              pairs

WHAT’S HAPPENING: New Home Sales measures the annualized number of new single-family homes that were sold during the previous month. This report tends to have more impact when it’s released ahead of Existing Home Sales because the reports are tightly correlated. 

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 (Jun), GERMANY

WHEN:                                                               WHAT IT INFLUENCES:

24th JUNE 2021                                                   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. The index is compiled by the Ifo Institute for Economic Research. 

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 (Jun), JAPAN

WHEN:                                                                WHAT IT INFLUENCES:

22nd JUNE 2021                                                  JPY and its subsequent 

                                                                              Pairs 

WHAT’S HAPPENING:  The survey covers transport & communication, financial intermediation, business services, personal services, computing & IT and hotels & restaurants. Each response received is weighted according to the size of the company to which the questionnaire refers & the contribution to total service sector output accounted for by the sub-sector to which that company belongs.

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.

Retail Sales (MoM) (Apr), CANADA

WHEN:                                                               WHAT IT INFLUENCES:

23rd JUNE 2021                                                    CAD 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 CAD, whereas a lower-than-expected reading should be taken as negative/bearish for the CAD.

EQUITIES IN THE COMING WEEK

1. IHS Markit Ltd (INFO) to announce its Quarterly Results on 23rd JUNE 2021, EPS estimated to 0.7996 per share while revenue estimated 1.12B. 

2. Nike (NKE) to announce its Quarterly Results on 24th JUNE 2021, EPS estimated to 0.5074 per share while revenue estimated 11.14B.

3. Accenture (ACN) to announce its Quarterly Results on 24th JUNE 2021, EPS estimated to 2.24 per share while revenue estimated 12.76B.

4. Paychex (PAYX) to announce its Quarterly Results on 25th JUNE 2021, EPS estimated to 0.6695 per share while revenue estimated 966.91M.

5. CarMax (KMX) to announce its Quarterly Results on 25th JUNE 2021, EPS estimated to 1.64 per share while revenue estimated 6.12B.

TOP COMMODITIES IN THE COMING WEEK

GOLD

Weekly Technical Analysis

GOLD was trading in the up channel; after breaking the channel downside is seen and it can further deepen in the coming days.

SILVER

Weekly Technical Analysis

SILVER was trading in the down channel; after breaking the channel further downside can be seen in the coming days.

WTI CRUDE OIL

Weekly Technical Analysis

WTI CRUDE OIL was trading in the up channel; after breaking the channel it had formed the Morning Doji Star pattern which indicates a bullish reversal pattern.

TOP CRYPTO IN THE COMING WEEK

BTCUSD

Weekly Technical Analysis

BTCUSD is trading in the parallel channel, further upside can be seen if it breaks the channel upside and vice-versa.

ETHEREUM

Weekly Technical Analysis

ETHEREUM is trading in the parallel channel, further upside can be seen if it breaks the channel upside and vice-versa.

    TOP CURRENCY IN THE COMING WEEK

EURUSD 

Weekly Technical Analysis

EURUSD was trading in the up channel; after breaking the channel downside is seen and it can further deepen in the coming days.

GBPUSD

Weekly Technical Analysis

GBPUSD was trading in the parallel channel, after breaking the channel downside is seen and it can further deepen in the coming days.

EURGBP

Weekly Technical Analysis

EURGBP is trading in the descending triangle pattern; the downside can be seen if it breaks downside support.

TOP INDEX IN THE COMING WEEK

CAC 40

Weekly Technical Analysis

CAC 40 is currently in the upward channel. Further upside can be seen in the coming week.

DAX 30

Weekly Technical Analysis

DAX 30 was in the up channel, after breaking the channel further downside can be seen in the coming days.

FTSE 100

Weekly Technical Analysis

FTSE 100 is currently in an up channel. Further upside can be seen in the coming week.

DATA WATCH

Weekly Technical Analysis

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