Daily Review for May 17, 2022
Traders are looking forward to statements from Jerome Powell as Fed Chairman and also from Christine Lagarde as President of the European Central Bank.
Traders are looking forward to the Euro Zone’s quarterly GDP report, which is expected to show a rise of at least 5%.
Ethereum is starting to rebound after last week’s sharp decline. Traders are keeping an eye on the development of Ethereum 2.0 and its possible launch in June 2022.
The confinements in Shanghai are over and this is generating a bullish momentum in commodities, mainly in the energy segment.
| GOLD +0.74% |
| Traders are watching the statements of Jerome Powell as Chairman of the Fed and Christine Lagarde as President of the European Central Bank. Investors’ fear is a new interest rate hike. At its last meeting, the FED had expressed the possibility of an additional 75 basis points hike. For its part, the ECB is expected to confirm Lagarde’s interest in raising rates for the July 2022 meeting. For the time being, traders are increasing their purchases in gold in order to mitigate market volatility in their portfolios. |
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| Support 1: 1,823.95 Support 2: 1,820.49 Support 3: 1,818.54 Resistance 1: 1,829.36 Resistance 2: 1,831.31 Resistance 3: 1,834.77 Pivot Point: 1,825.90 |
| Price is below the 200-day moving average, right at resistance 1. Expected trading range between USD$1,818 and USD$1,834. Pivot point for trend change at USD$1,825. RSI approaching the overbought zone, which could lead to profit taking at the current level. |
| EUROSTOXX 50 +1.15% |
| Traders are looking forward to the Euro Zone’s quarterly GDP report, where at least a 5% increase is expected. If the above is confirmed or the GDP result is better than expected, it could confirm the uptrend in European stock markets. At the moment the Eurostoxx 50 is up 1.15% and is trading at 3,696 points. On the other hand, all global stock markets are showing upward movements. In Europe, the DAX 40 remains in an uptrend with +1.02%. |
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| Support 1: 3,692 Support 2: 3,685 Support 3: 3,680 Resistance 1: 3,704 Resistance 2: 3,709 Resistance 3: 3,716 Pivot Point: 3,697 |
| Price is above the 200-day moving average, right at resistance 1. Expected trading range between 3,680 and 3,716. Pivot point for trend change at 3,697. Neutral RSI approaching the overbought zone, so the price could go up a few more points before traders start taking profits. |
| ETHEREUM +3.42% |
| Ethereum is starting to rebound after last week’s sharp drop. Traders are keeping an eye on the development of Ethereum 2.0 and its possible launch in June 2022. Meanwhile, the Brazilian Stock Exchange will launch Bitcoin and Ethereum futures. On the other hand, Ethreum co-founder Vitalik Buterin commented that developers should stop experimenting with algorithmic stablecoins, and rather focus on blockchain applications in other industries. Ethereum is currently up 3.42% and is trading at USD$2,071. |
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| Support 1: 2,076.29 Support 2: 2,063.75 Support 3: 2,054.93 Resistance 1: 2,097.65 Resistance 2: 2,106.47 Resistance 3: 2,119.01 Pivot Point: 2,085.11 |
| The price is below the 200-day moving average, just between resistance 1 and support 1. Expected trading range between USD$2,054 and USD$2,119. Pivot point for trend change at USD$2,085. RSI neutral, so the price could continue rising towards the next resistance. |
| NATURAL GAS +0.92% |
| The confinements in Shanghai are over and this is generating a bullish momentum in commodities, mainly in the energy segment. On the other hand, Germany’s RWE is analyzing purchases of Russian natural gas through Rubles. The European Union continues to search for new sources of natural gas and continues to evaluate the impact of the energy sanctions against Russia. Natural Gas is currently up 0.92% and is trading at USD$8.05 per BTU. |
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| Support 1: 8.042 Support 2: 8.020 Support 3: 8.000 Resistance 1: 8.084 Resistance 2: 8.104 Resistance 3: 8.126 Pivot Point: 8.062 |
| The price is above the 200-day moving average, between resistance 1 and support 1. Expected trading range between USD$8 and USD$8.12. Pivot point for trend change at USD$8.12. RSI neutral, so the price could continue the rally towards USD$9.01 per BTU. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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