A follow-up on the pairs that we discussed in our midweek outlook.
USDCAD
USDCAD Daily
Since our last update, the pair has been trading slightly lower but is still well supported by the 50-day SMA. Investors remain cautious as PPI is scheduled to be released in 3 hours. The previous technical levels remain intact with the possibility of the pair testing 1.38000 before the market closes diminished as the pair drifted lower.
GBPUSD
The Pound Dollar is stalling and we don’t see too much conviction here as market participants are staying on the sideline for the upcoming key events. 1.2300 is indeed a tough level for the bulls to break, though the PPI data could provide some much-needed volatility. Previous technical levels are still in force.
And some market talks to end the week…
TSLA
Continuing on our Technical Tuesday article, Tesla has later reduced its staff’s working shifts and also slowed down the hiring process in Giga Shanghai. Together with reports that production will be dialed back, TSLA shares were faced with tremendous pressure this week.
TSLA Daily
TSLA lost grip during the last two trading sessions and the stock is now down 11% for the week already. The inverse head and shoulders pattern that we discussed did not play out as anticipated, and the last hope for buyers has probably been destroyed. Musk’s social media venture certainly did not help as he had already sold some of his Tesla holdings to “save” Twitter. What is your priority, Musk?
Should the bearish sentiment gets stronger and shareholders start to lose confidence, $150 is not too far away for our next area of interest.
WTI Crude
USOIL Daily
Crude oil is set to end the week with double-digit losses too as it broke through its key support level near $77. Apparently, the price cap set by the western nation on Russian crude is not as effective as previously thought. Coupled with a slowdown in economic growth and fears over sluggish demand, the commodity is making its way toward the South.
Optimistically, we can expect a strong bounce up from the $65.50 level as it coincides with the effects of China’s relaxation of covid restrictive rules to fully materialize. However, the question then becomes whether or not the economy can really pick up in the face of an expected surge in covid cases and related deaths.
All in all, the double-top pattern that was repeatedly discussed has finally played out and we are always on the lookout for the next opportunity. Visit our blog regularly for updates.
Bitcoin
Industry-leading Bitcoin has entered into another round of consolidation following a sharp decline due to FTX’s fallout. Trading at $17200, it is looking like a tough journey for Bitcoin to recover in the short term. The US CPI and Fed’s meeting next week may inject some volatility into the asset, and if there is enough bullish power we may see the pair retest the broken support near $18500.
Bitcoin and other cryptos used to trend higher as Christmas approaches, except last year. Are we going to witness a Christmas Bump in the next couple of weeks? Only time will tell.
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Ru Yi
Financial Market Analyst
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