August 29, 2022 ATFX “Ming Tian Guan Hui” ｜Fang Gezi vocus

August 29, 2022 ATFX “Ming Tian Guan Hui”

Market risk, the investment needs to be careful! Happy trading!

Powell hawks tumble US stocks, markets focus on non-farm payrolls report this week

【Market Review】

Federal Reserve Chairman Powell beat market expectations and said he would continue to raise interest rates “strongly” to fight inflation, which dashed some investors’ hopes for a slowdown in the path of interest rate hikes, and also noted the possibility of continuing to charge interest. rates by 75 basis points at the September meeting.

Last Friday, US stocks collectively suffered a fall of more than 3% The Dow fell more than 1,000 points in one day for the first time in three months. The S&P and the Nasdaq recorded their biggest daily declines in more than two months. For the week, the Nasdaq fell 4.4%, the Dow fell 4.2% and the S&P 500 fell 4%.

The US dollar index rose above the 109 mark at one point, with two-year yields briefly reaching their highest since October 2007. EUR/USD continued to close below 1.0, while GBP recorded its biggest drop in a week and returned to below 1.18.

Gold fell more than 1% to close below $1,740, closing lower for the second straight week. Oil prices ended slightly lower, with weekly gains of 2.5%, helped by Saudi Arabia’s signal that OPEC may cut production, but also by beauty hawks.

【Key Prospects】
This morning, the Asian market continued to digest last Friday’s market, along with limited important data guidance during the day, so it is expected that the market will continue in the previous trading day, and gradually wait for the latest job market report of the United States later this week.

【Important Economic Calendar】
UK closed for holidays
09:30 Australia in July seasonally adjusted retail sales**
13:00 Japan June synchronization and leading indicators**
22:30 US August Dallas Fed Business Activity Index**
Note: * is the degree of importance

【Market Analysis】
EURUSD
0.9970/1.0013 resistance
0.9903/0.9853 support
The euro rose against the dollar last Friday, but after the dollar received Powell’s speech to stimulate the increase, the exchange rate still closed lower. This morning, it continued to expand and fell close to the low set last week, so pay attention to the possibility of looking for support near the 0.99 mark first.

GBP to USD
1.1734/1.1795 resistance
1.1641/1.1593 support
GBP/USD extended the pressure of the previous session this morning, hitting its lowest level since March 2020 this morning. The 4-hour chart fell below the previous low, and the exchange rate continued to approach the 1.1600 mark. If it cannot hold this level, it will attract more selling to follow.

USD/JPY
139.12/140.15 resistance
137.45/136.41 support
After the USD/JPY closed at a one-week high last Friday, it continued to expand upwards this morning The Asian market is approaching 138.50, and is looking to challenge the mid-July high .So, if it breaks the 139 mark, it should pay attention to the resistance of the high level range.

USD/CNY
6.9292/6.9549 resistance
6.8876/6.8461 support
USD/RMB followed the strength of the USD last Friday and then hit a high. This morning, it continued to break above 6.90 Technically, the upward momentum on the 4-hour chart is strong, but pay attention to short-term adjustments before testing 6.93 During the period, pay attention to the support near 6.89, but Target 6.95 if there is a chance of a breakout to the side.

USD/CAD
1.3074/1.3131 resistance
1.3028/1.2982 support
USD/CAD recorded its biggest one-day rebound since mid-August last Friday.. It continued its upward trend this morning, renewing the intraday high since mid-July. Whether the current level can holding above 1.30 is the key to determine if the rebound can expand, and Push the target above 1.31.

US Crude Oil Futures (October)
94.23/95.86 resistance
92.62/90.57 support
Oil prices closed around $93 late last Friday, attempting to rebound during the session, but the Fed’s hawkish stance also weakened the rebound in oil prices. Still trading between the moving averages on the 4-hour chart, it tends to consolidate before breaking out, and a break above the 20 SMA would mean a move above $94.

spot gold
1736/1748 Resistance
1711/1700 support
Spot gold was directly weighed down by Powell’s comments last Friday and recorded its biggest drop in nearly two weeks. It continued to fall this morning, recording its lowest level since late July. If it can’t hold $1725, pay attention to the low level. in the 4-hour chart from 1711. The dollar comes into view. Spot money pays attention to resistance 18.95/19.21 and support 18.44/18.18.

US Dow Jones Industrial Average Futures US30
32703/33304 Resistance
31731/31245 support
Powell said that “another unusually large increase may be appropriate”, which scared the US stocks directly, and the Dow plunged thousands of points. After the current correction, the Dow has fallen to a one-month low, and the market continues to digest the market during the day, which may relieve some of the downward pressure, but it is still necessary to pay attention that the price can continue to approach 32,000.

US S&P 500 SPX500
4098/4178 resistance
4035/3972 support
The Fed was once again reflected by raising interest rates by 75 basis points in September. Last Friday, the S&P 500 index fell 141.46 points, or 3.37% The current initial support is looking at 4035, just to see if the point mark can 4000 below. be maintained.

NASDAQ US NAS100 Index
12898/13115 resistance
12407/12187 support
Last Friday, the Nasdaq fell 497.56 points, or 3.94%% It is also at a one-month low. As market sentiment is still weak, there is still room for a short-term adjustment. Therefore, we should look at the initial support near 12,400. In terms of resistance, we mainly look at the 4 hour chart 10 moving average and Fibonacci set at 12898.

Japan’s Nikkei 225 index JP225
27944/28120 resistance
27595/27373 support
The Nikkei 225 fell sharply last Friday, recording its biggest drop since June This morning, it trailed the US stock market and opened lower, hitting the lowest level in almost three weeks.Before entering the previous low range, technically pay attention to the vicinity of 27600. eg support.

China Index A50 CHI50
13620/13724 resistance
13386/13284 support
The A50 index opened lower this morning, and the trend was repeated. The intraday low was around 13500, and the resistance was below the 4 hour moving average. So, 13600 is the current resistance. retest of last week’s low of 13386.

Hong Kong Hang Seng HK50 Index
20073/20215 Resistance
19783/19639 support
The Hang Seng Index finally closed lower after hitting a high last Friday. It also opened lower this morning in line with external sentiment. The 4 hour chart continued to decline from the top. For now, we will focuses on the trading between the moving averages, so we may repeatedly test the 20,000-point mark, which is the main support, around 19800.

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