Daily Review for March 2, 2022
The Bank of Canada will make its interest rate decision. Analysts expect a hike of 25 basis points to 0.50%.
The market is watching the Fed Chairman Jerome Powell’s remarks. Traders are viewing the monetary policy strategy due to the interest in controlling inflation, but also in not destabilizing the markets due to the conflict in Ukraine.
OPEC will meet today, in order to assess the market balance. Continuity is expected in its strategy, which is based on increasing production on a monthly basis. The United States and its allies are seeking to release 60 million barrels into the market to balance prices. For the time being, the price continues to rise, reaching USD$108 per barrel.
Due to the economic sanctions in Russia, the volume of transactions in Bitcoin and other cryptos increases.
Traders are paying attention to the inflation data in the Euro Zone and the announcements of the ECB members.
| GOLD -0.15% |
| Traders are watching the statements of Jerome Powell as Chairman of the FED. Announcements are expected regarding the postponement of interest rate hikes due to the conflict in Ukraine. If interest rates are raised at this time, global markets could be destabilized. At the moment the price of gold is down 0.15% and is trading at USD$1,939 per Troy ounce. At the moment, global stock markets are showing mixed movements. Wall Street futures are in positive territory, while in Europe the indices are correcting, mainly the Swiss SMI with -1.02%. The price of silver is down 1.48% and is trading at USD$25.16 per Troy ounce. |
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| Support 1: 1,940.90 Support 2: 1,934.10 Support 3: 1,929.10 Resistance 1: 1,952.70 Resistance 2: 1,957.70 Resistance 3: 1,964.50 Pivot Point: 1,945.90 |
| The price corrected from resistance 1, where traders took profits. At the moment, it is heading towards the pivot point, where it could generate a change of trend. Expected trading range between USD$1,929 and USD$1,964. Pivot point at USD$1,945. RSI neutral. |
| WTI +6.16% |
| OPEC will meet today to evaluate the supply and demand balance of the market. Analysts expect that the institution will not change its plan and will maintain the objective of increasing production on a monthly basis. On the supply side, the market is beginning to feel pressure due to Russia’s difficulty in selling its oil without Swift. At the moment the price of WTI is up 6.16% and is trading at USD$109.69 per barrel. Brent is up 5.91% and is trading at USD$111.06 per barrel. On the other hand, the United States and its allies are thinking of releasing 60 million barrels to the market in order to balance prices. |
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| Support 1: 109.51 Support 2: 107.99 Support 3: 107.01 Resistance 1: 112.01 Resistance 2: 112.99 Resistance 3: 114.51 Pivot Point: 110.49 |
| The price is between resistance 1 and resistance 2. The next target for the Bulls is at USD$121.80 per barrel. Continuity of buying volume would have to be present for the above to occur. Possible sideways movement as physical and futures traders take profit in the spot. RSI in overbought zone. |
| BITCOIN +0.73% |
| The volume of purchases in the crypto market continues to increase. Analysts project the price of Ethereum at USD$10,000. Bitcoin is currently up 0.73% and is trading at USD$43,864. Due to economic sanctions, in Russia there is an increase in the use of Bitcoin and other cryptos for transactions. At the moment, analysts are starting to test Bitcoin as a possible safe haven asset. Bulls are looking to break above the current level and push the price towards USD$46,000. |
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| Support 1: 43,674.6 Support 2: 43,491.3 Support 3: 43,173.7 Resistance 1: 44,175.6 Resistance 2: 44,493.3 Resistance 3: 44,676.6 Pivot Point: 43,992.3 |
| The price is moving sideways above resistance 1, which could lead to profit taking, or an increase in buying volume, pushing the price towards the next resistance at USD$46,681. Expected trading range between USD$43,173 and USD$44,676. Pivot point at USD$43,992. RSI neutral, so the uptrend could continue. |
| DAX 40 -0.83% |
| Traders are watching for the ECB’s monetary policy statements from some of its members. At the moment, the market is watching retail sales in Germany (demand indicator), the budget in France, unemployment rate in Spain and Germany, and inflation in the Euro Zone, which is decisive for the ECB’s strategy. At the moment, the DAX 40 is correcting 0.83% and is trading at 13,813 points. |
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| Support 1: 13,668.5 Support 2: 13,591.0 Support 3: 13,478.5 Resistance 1: 13,858.5 Resistance 2: 13,971.0 Resistance 3: 14,048.5 Pivot Point: 13,781.0 |
| The price is at support 1, where it is marking an important double bottom. Expected trading range between 13,478 and 14,048. Pivot point for trend change at 13,781. RSI neutral. Descending channel, however, it could present a change of trend due to the double floor. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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