Daily Review for June 03, 2022
Global markets mixed. Investors keep focused on central bank interest rate hikes.
After a sharp drop on Wall Street and global stock markets due to the Fed’s interest rate hike, traders are watching the Non-Farm Payrolls (NFP) today.
Europe continues to buy natural gas in the US and Norway at a premium to the price to secure its needs.
Bitcoin is trading at USD$30,506. Today traders are watching the NFP and the impact that Bitcoin options expiration may have.
The Nasdaq 100 closed yesterday with a 2.69% gain generated by investors’ buying volume. The US central bank maintains its strategic focus on lowering inflation towards the 2% annual maximum.
| GOLD -0.18% |
| After a sharp drop on Wall Street and global stock markets due to the Fed’s interest rate hike, traders are looking ahead to today’s Non-Farm Payrolls (NFP) report. Analysts expect the creation of at least 325,000 new non-farm jobs and a 3.5% monthly unemployment rate by May 2022. Buying positions in gold and silver continue, due to economic uncertainty. Gold is currently trading at USD$1,868 and silver at USD$22.38 per Troy ounce. |
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| Support 1: 1,866.64 Support 2: 1,865.72 Support 3: 1,864.09 Resistance 1: 1,869.19 Resistance 2: 1,870.82 Resistance 3: 1,871.74 Pivot Point: 1,868.27 |
| The price is above the 200-day moving average, between resistance 2 and support 2. Expected trading range between USD$1,864 and USD$1,871. RSI neutral, so the price could correct some additional points to change the trend. |
| NATURAL GAS -1.83% |
| Europe continues buying the commodity from the United States and Norway at a premium over the price to guarantee its needs. Meanwhile, the European Union continues to show evidence of Russian gas supply cuts. On the other hand, Germany is moving forward with the construction of an LNG import terminal. In the US, O&G companies report the best cash flow levels since 2014. Natural gas is currently down 1.83% and is trading at USD$8.30 per BTU. Traders expect a rise above USD$10 due to the market supply shock. |
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| Support 1: 8.251 Support 2: 8.224 Support 3: 8.180 Resistance 1: 8.322 Resistance 2: 8.366 Resistance 3: 8.393 Pivot Point: 8.295 |
| Price is below the 200-day moving average, between resistance 1 and support 1. Expected trading range between USD$8.18 and USD$8.39. Pivot point for trend change at USD$8.29. RSI neutral, so the price could continue the correction to the next support level. |
| BITCOIN +1.86% |
| Bitcoin remains above USD$30,000. Today, traders are watching the NFP and the impact of the Bitcoin options expiration. If the NFP beats market expectations, Wall Street is likely to rebound and recover part of May’s decline. The Fed’s rate hike generates an increase in investors’ cost of capital, thus, the demand for capital decreases. On the other hand, the Florida Government proposed a regulatory framework for cryptocurrencies in order to attract the development of the industry in the state. |
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| Support 1: 30,339.2 Support 2: 30,214.4 Support 3: 30,134.5 Resistance 1: 30,543.9 Resistance 2: 30,623.8 Resistance 3: 30,748.5 Pivot Point: 30,419.1 |
| The price is above the 200-day moving average, which is a bullish signal for crypto. Expected trading range between USD$30,134 and USD$30,748. Pivot Point at USD$30,419. RSI neutral, so the price could continue to climb a few points before defining a trend depending on the NFP report. |
| NASDAQ 100 -0.46% |
| The index closed up 2.69% yesterday as the market rebounded, driven by traders trading the NFP report. The US central bank maintains its strategic focus on bringing inflation down to the 2% annual maximum. The cost of this, however, dragged down Wall Street’s gains of the past two years in May. Traders are watching the NFP today. If it beats market expectations, it could signal a rebound in the stock markets. In the meantime, all global stock markets are mixed. |
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| Support 1: 12,802.1 Support 2: 12,777.9 Support 3: 12,736.3 Resistance 1: 12,867.9 Resistance 2: 12,909.5 Resistance 3: 12,933.7 Pivot Point: 12,843.7 |
| Price is above the 200-day moving average. Expected trading range between 12,736 and 12,933. Pivot point for trend change at 12.843. RSI in oversold zone. Traders are watching the NFP, which can increase or decrease the declines in the market. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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