August 23, 2022 ATFX “Ming Tian Guan Hui” | ATFX – vocus

August 23, 2022 ATFX “Ming Tian Guan Hui”

Market risk, the investment need to be cautious! Happy trading!

Market hedging before the annual meeting of the central bank, U.S. stocks suffered sharp losses overnight

【Market Review】

U.S. stocks ended sharply lower on Monday as investors jittered about the annual meeting in Jackson Hole later this week, where the Federal Reserve is expected to underscore a firm commitment to curbing inflation.

Risk assets fell, the dollar rose across the board, approaching the high set on July 14, and rose above parity against the euro again, the pound hit its lowest point in nearly two and a half years, and the dollar hit a one-month high against the yen.

A stronger dollar weighed heavily on precious metals, with gold falling to its lowest level in nearly a month. Oil prices rebounded from session lows and were almost flat in choppy trade.

【Key Prospects】
Today, countries announced the August manufacturing and service PMIs, focusing on European and American data, because it is expected that the euro zone manufacturing industry may fall below 50 and fall into contraction, but the US data is expected to remain in the expansion range.

【Important Economic Calendar】
08:30 Japan’s August manufacturing and services PMI preliminary values**
15:30 German August manufacturing and services PMI preliminary values**
16:00 Eurozone August manufacturing and services PMI preliminary values**
16:30 UK August manufacturing and services PMI preliminary values**
21:45 US August manufacturing and services PMI initial value***
22:00 Eurozone August consumer confidence index preliminary value**
22:00 US July New Home Sales and August Richmond Fed Manufacturing Index**
The next day at 04:30 API crude oil inventory changes last week***
Note: * is the degree of importance

【Market Analysis】
EURUSD
1.0002/1.0042 resistance
0.9912/0.9871 support
In the face of the continued strength of the US dollar, the euro fell three times overnight and fell below US$1 for the first time since July 14. After falling below the key psychological level, it is expected to remain at a low level and look at the performance of the latest manufacturing PMI in the day. Shrinking, the euro’s losses may extend to 0.99 or lower.

GBP to USD
1.1795/1.1843 resistance
1.1743/1.1688 support
GBP/USD has fallen for four consecutive days, falling below the 1.18 mark and hitting the lowest level since March 2020. The 4-hour chart shows a downward look. Currently, it has temporarily found support above 1.17, but if the dollar continues to be strong, the price is expected to still fall The possibility of breaking the above threshold.

USD/JPY
138.05/138.39 resistance
136.71/136.38 support
Driven by the U.S. dollar, the U.S. dollar rose for five consecutive days and hit a one-month high yesterday, but it is currently sorted above 107.60. While the momentum is temporarily slowing down, pay attention to the adjustment. If it goes down, pay attention to the support of the two major moving averages in the 4-hour chart.

USD/CNY
6.8813/6.8949 resistance
6.8539/6.8401 support
USD/RMB has a relatively strong trend, once breaking through the 6.87 level, but pay attention to the technical 4-hour chart that currently forms a short-term high resistance above this level. If it fails to break through, it may return to the vicinity of 6.85 to seek support, but if it breaks through, continue to look towards Above 6.88.

USD/CAD
1.3082/1.3117 resistance
1.3000/1.2973 support
USD/CAD rose for four consecutive days, hitting the highest level on July 15 yesterday, but the rise was suspended after hitting the top of the 1.30 mark. Technically, the top of 1.3060 still acts as the current key resistance, so also pay attention to short-term adjustments.

US Crude Oil Futures (Oct)
92.62/94.23 resistance
88.96/87.30 support
The market weighed Saudi Arabia’s warning about possible production cuts by OPEC+. Oil prices fell first and then rebounded, finally closing above $90.50. The upward trend continued this morning. The manufacturing PMIs of various countries in the day may bring guidance. If it slows down, it may limit oil prices further. A rebound, especially towards the $92 mark.

spot gold
1748/1759 Resistance
1725/1711 support
The dollar’s strength continued, with gold falling for a sixth straight session overnight, after hitting its lowest level since July 27 earlier in the session below $1,730. This morning, the price tried a small rebound, and the 4-hour chart temporarily formed the current bottom. If you pay attention to the resistance of the moving average above $1,740. Spot silver concerns 19.31/19.59 resistance and 18.74/18.47 support.

US Dow Jones Industrial Average futures US30
33297/33793 Resistance
32694/32207 support
The Dow futures fell sharply yesterday and recorded the biggest one-day drop since mid-June, as the market worried that the Federal Reserve would release more firm determination to raise interest rates at the annual meeting of global central banks this week. The 4-hour chart shows that the moving average has turned into resistance again. If the US manufacturing PMI cannot provide support within the day, it may further test below 32700.

US S&P 500 SPX500
4178/4240 resistance
4098/4035 support
The S&P 500 index tumbled 2.14% overnight to close at 4137.99 points. After technically increasing the adjustment from the high level, if the initial support level of 4098 cannot be held, the downside will be further opened. Pay attention to whether the U.S. manufacturing industry is still expanding during the day. Some of the losses were eased.

US NASDAQ index NAS100
13114/13338 resistance
12623/12407 support
The market focused on the Fed’s stance on raising interest rates. The Nasdaq fell 2.55% overnight to close at 12,381.57 points, leading the decline among the three major indexes. Currently below the 13,000 mark, if it cannot find support at 12,989, the decline will push to a lower level of 12,600.

Japan’s Nikkei 225 Index JP225
28515/28694 resistance
28297/28120 support
The Nikkei 225 index continued the decline of the previous two days this morning, and further refreshed the low of more than one week. Technically, the 4-hour moving average has turned into resistance. The price needs to find support at 28297 to ease the downward trend. There is a chance to look at 28500 again. above, otherwise it may point to 28000 integer off.

China A50 Index CHI50
13747/13829 Resistance
13622/13493 support
The A50 index rose yesterday, driven by the favorable policy, but technically it failed to break through 13700, which slowed the rise. It was tested again this morning but fell. It is currently trading near the moving average of the 4-hour chart, which is also the level of 13600. Whether it can hold will determine whether the price tries to rebound again.

Hong Kong Hang Seng Index HK50
19812/19940 resistance
19531/19405 support
HK50 rebounded with the mainland stock market yesterday, but failed to hold most of the gains. It is still in the recent low range. If the 4-hour moving average is still a resistance, then pay attention to still have room to go lower, pointing below the recent low of 19500.

The content is for reference only: there are risks in the market, and investment should be cautious. Happy trading!