Daily Review for July 7, 2022
According to Fed minutes, the institution fears high inflation more than an economic recession. Officially, the bank has entered into a restrictive monetary policy, which is characterized by the constant increase of interest rates, the decrease of liquidity in the market and the elimination of economic stimulus.
According to the API report, oil inventories rose by 3.8 million barrels, surprising the market.
Wall Street closed higher. However, the Fed minutes showed that the bank is more interested in lowering inflation than in generating an economic recession.
Developers are moving towards the blockchain phase of the Ethereum 2.0 upgrade. The upgrade will allow the Ether platform to be used at reduced rates.
| GOLD -1.53% |
| According to Fed minutes, the institution fears high inflation more than an economic recession. Officially, the bank has entered into a restrictive monetary policy, which is characterized by constantly raising interest rates, decreasing liquidity in the market and eliminating economic stimulus. Analysts expect a 50 to 75 basis point hike at the next Fed meeting in July 2022. The inflation target remains at 2% per year, which according to the Fed could lead to full employment. Equities rose today, as did cryptos. Gold continues to correct. However, it could be at an interesting buying point due to the rebound that could occur before a rate hike. |
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| Support 1: 1735.99 Support 2: 1733.42 Support 3: 1730.19 Resistance 1: 1741.79 Resistance 2: 1745.02 Resistance 3: 1747.59 Pivot Point: 1739.22 |
| Price is below the 200-day moving average, between support 1 and resistance 1. Expected trading range between USD$1,730 and USD$1,747. Pivot point for trend change at USD$1,739. RSI in oversold zone, so gold could start to show buying interest from this point. |
| WTI -1.38% |
| According to the API report, oil inventories rose by 3.8 million barrels, surprising the market. The increase in supply, the G7 initiative to cap the price, fears of an economic recession which would directly impact demand, have generated a price correction since yesterday. WTI is currently down 1.38% and is trading at USD$98.13 per barrel. Gasoline prices in the US have started to decline. Traders are ready to confirm the increase in inventories with tomorrow’s IEA report. |
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| Support 1: 98.26 Support 2: 98.05 Support 3: 97.76 Resistance 1: 98.76 Resistance 2: 99.05 Resistance 3: 99.26 Pivot Point: 98.55 |
| The price is below the 200-day moving average, between resistance 1 and support 1. Expected trading range between USD$97.76 and USD$99.26. Pivot point for trend change at USD$98.55. RSI neutral, so the price could continue correcting towards the next support level, before testing a change of trend. |
| NASDAQ 100 +0.03% |
| Wall Street closed higher. However, the Fed minutes showed that the bank is more interested in lowering inflation than in generating an economic recession. Therefore, it is possible that there will be a sell-off in equities during the next trading session. At the moment, the Nasdaq 100 is up 0.03% and is trading at 11,859 points. In the United Kingdom, pressure continues from members of congress on Boris Johnson, for the Prime Minister to resign. As a result, the pound sterling is showing a correction, as is the FTSE 100. |
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| Support 1: 11,856.1 Support 2: 11,840.4 Support 3: 11,830.4 Resistance 1: 11,881.8 Resistance 2: 11,891.8 Resistance 3: 11,907.5 Pivot Point: 11,866.1 |
| Price is above the 200-day moving average, between resistance 1 and support 1. Expected trading range between 11,830 and 11,907. Pivot point for trend change at 11,866. RSI neutral, so traders could either start selling or reach resistance 1 to take profits. |
| ETHEREUM +3.02% |
| Developers are moving towards the test chain phase of the Ethereum 2.0 upgrade. The upgrade will allow using the Ether platform with reduced fees. Even the fees for using the project are at the same level as in December 2020. At the moment Ethereum is up 3.02% and is trading at USD$1,187. Whales and large investors who hold between 100 and 100,000 Ethereum have re-entered the market, increasing their stakes. |
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| Support 1: 1157.32 Support 2: 1151.93 Support 3: 1148.47 Resistance 1: 1166.17 Resistance 2: 1169.63 Resistance 3: 1175.02 Pivot Point: 1160.78 |
| The price is above the 200-day moving average, which is a bullish signal for Ethereum. Price is between resistance 1 and support 1. Expected trading range between USD$1,148 and USD$1,175. Pivot point for trend change at USD$1,160. RSI in overbought zone, so traders could take profit at this level, or continue to increase holdings to reach the next resistance levels. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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