August 22, 2022 ATFX “Ming Tian Guan Hui”
Market risk, the investment need to be cautious! Happy trading!
U.S. dollar rises with U.S. bond yields, U.S. stocks stop four-day winning streak
【Market Review】
The rise in U.S. government bond yields led to pressure on the stock market last Friday. All three major indexes closed lower, led by large-cap stocks. about 0.2%.
As U.S. 10-year bond yields approached 3%, the dollar index hit a five-week high and recorded its biggest weekly gain since April 2020, the euro hit its lowest since mid-July, and the pound hit its best since September 2020 weekly decline.
Gold prices fell for a fifth straight session, the longest losing streak since November last year. Oil prices held steady but fell for the week, weighed down by a stronger dollar and concerns that a slowing economy would dent crude demand.
【Key Prospects】
The key economic data in the market on Monday was very light, and the market is expected to be inclined to wait and see other intensive data later in the week, including Tuesday’s preliminary August manufacturing PMI reports from various countries.
【Important Economic Calendar】
09:15 China One-Year and Five-Year Loan Rates**
20:30 Canada July New Home Price Index**
20:30 US July Chicago Fed National Activity Index**
Note: * is the degree of importance
【Market Analysis】
EURUSD
1.0082/1.0123 resistance
1.0002/0.9951 support
The euro against the dollar continued to be under pressure this morning after increasing its retracement to the low level since mid-July last Friday, further approaching the 1.00 mark, so the line of sight is looking forward to a low of 0.9951, but before that, you can pay attention to 1.00 as an important psychological mark support.
GBP to USD
1.1843/1.1890 resistance
1.1790/1.1734 support
GBP/USD also fell to its lowest level since mid-July after three consecutive losses. The previous low was around 1.1760. However, the current 4-hour chart shows that the exchange rate is consolidating at a low level. If it can hold 1.1790, it can temporarily ease the downward momentum.
USD/JPY
137.45/138.27 resistance
136.41/135.59 support
USD/JPY recorded a four-day streak of gains last Friday. This morning, it further tested the highest level since July 27, which means that it will expand its upward trend above the 137 mark. For the time being, focus on 137.45 as the resistance of the previous high in the 4-hour chart. A breakout will look towards the 138 mark.
USD/CNY
6.8539/6.8676 resistance
6.8231/6.8091 support
The USD/RMB has risen sharply since last week, hitting a two-year high. The current 4-hour chart forms the current high resistance near 6.8450. If it can break through further with the US dollar, the target will point to above 6.85, but if it encounters resistance and adjusts Then it points to 6.82, which is also the level of the 10 moving average.
USD/CAD
1.3029/1.3075 resistance
1.2983/1.2936 support
After the USD/CAD closed higher, the current challenge is the resistance above the 1.30 mark. From the 4-hour chart, considering that 1.2980 to 1.3029 used to be a heavy trading range in the previous period, if it fails to break through, the current exchange rate may also be Reproduce trading within the range.
US Crude Oil Futures (Oct)
90.57/92.62 resistance
87.30/85.22 support
Crude oil futures closed slightly lower after intraday consolidation last Friday. They initially hit a five-day high, but turned around before approaching $92. The current 4-hour chart shows that they are temporarily in a narrow range between the moving averages, and the situation will determine the short-term re-accumulation. The rebound is still below $88.
spot gold
1751/1768 Resistance
1737/1724 support
Amid a stronger dollar and more interest rate hikes in the U.S., gold has lost traction, hitting its lowest level since July 28 last Friday. The current price is subject to the resistance of $1,750, but it also pays attention to the support near $1,740. It is expected that further declines will be limited when the intraday data guidance is light. Spot silver concerns 19.31/19.59 resistance and 18.74/18.47 support.
US Dow Jones Industrial Average futures US30
33888/34274 Resistance
33571/33264 support
U.S. bond yields hit a one-month high last Friday, and U.S. stocks followed a downward adjustment, with all three major indexes paring back gains that rebounded on Thursday. Currently, the Dow is technically further away from the high level, and may seek support at 33571, where the 20 MA and the Fibonacci level are located after falling below the 10 MA.
US S&P 500 SPX500
4280/4325 resistance
4177/4098 support
The S&P 500 fell 55.26 points, or 1.29%, on Friday, marking its weekly loss after four straight weeks of gains. The current price fell below the 4-hour moving average support, and temporarily focus on the consolidation near the 4200 mark to wait for the guidance of more key US economic data later this week.
US NASDAQ index NAS100
13338/13617 Resistance
13114/12899 support
The Nasdaq lost 260.13 points, or 2.01%, on Friday, snapping a four-week winning streak. Technically, the moving average of the 4-hour chart has been confirmed to turn into resistance. In the case of light intraday data guidance, it may temporarily favor the trading between 13338 and 13114.
Japan’s Nikkei 225 Index JP225
28694/28867 Resistance
28515/28297 support
The Nikkei 225 index stopped rising last Friday and recorded the largest one-day drop in two months, indicating that the technical high resistance is obvious. After the 29000 mark turned into resistance again, the price temporarily found support near 28500, but a bigger rebound Strength may be limited.
China A50 Index CHI50
13622/13725 Resistance
13493/13388 support
China announced this morning that its latest lending rate had been cut as expected, but slightly less than market expectations. The A50 index found support this morning after falling for two consecutive days last week and followed the release of the policy. Technically, if it can break through the 10 moving average in the 4-hour chart, then re-look at the upper resistance of 13600.
Hong Kong Hang Seng Index HK50
19651/19811 Resistance
19403/19277 support
After the continuous decline of HK50 last week, it once tested the low point in May this morning and gained support and rebounded. It returned to the top of 19500 in line with the positive news, but it still did not break away from the low range, only breaking the 4-hour chart 10 moving average around 19651 The resistance can have more rebound momentum to follow up.
The content is for reference only: there are risks in the market, and investment should be cautious. Happy trading!
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