Daily Review for May 18, 2022
Fed Chairman Jerome Powell announced that he will continue to raise interest rates until inflation reaches the inflation target of 2% per annum.
Traders are looking forward to the European Central Bank’s meeting, where it may announce a reference to the first interest rate hike, which is scheduled for July 2022.
Institutional investors are focused on the Bitcoin rebound. Bulls are hoping to consolidate the bullish path to record highs.
Weekly US crude oil stocks declined by 2.4 million barrels. Traders are looking forward to today’s US inventories report, which is expected to increase by 1.3 million barrels.
| GOLD -0.50% |
| In his speech, Fed Chairman Jerome Powell announced that he will continue to raise interest rates until inflation reaches the inflation target of 2% per annum. At the moment, stock markets are trying to recover from last week’s declines. Investors remain cautious about a more aggressive global monetary policy. Traders are keeping gold in their portfolios. Gold is currently down 0.50% and is trading at USD$1,813 per Troy ounce. |
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| Support 1: 1,805.33 Support 2: 1,803.20 Support 3: 1,798.95 Resistance 1: 1,811.71 Resistance 2: 1,815.96 Resistance 3: 1,818.09 Pivot Point: 1,809.58 |
| The price is below the 200-day moving average, between resistance 1 and support 3. Expected trading range between USD$1,798 and USD$1,818. Pivot point for trend change at USD$1,809. RSI neutral, so the correction could continue towards support 3. |
| DAX 40 -0.03% |
| Traders are looking forward to the meeting of the European Central Bank, where it could announce some reference to the first interest rate hike, which is scheduled for July 2022. For the moment, European stock markets have managed to recover a few points from last week’s major correction. The DAX 40 is sideways, showing a slight fall of 0.03% at the moment and trading at 14,173 points. |
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| Support 1: 14,170.6 Support 2: 14,152.3 Support 3: 14,125.1 Resistance 1: 14,216.1 Resistance 2: 14,243.3 Resistance 3: 14,261.6 Pivot Point: 14,197.8 |
| Price is above the 200-day moving average, near resistance 2. Expected trading range between 14,125 and 14,261. Pivot point for trend change at 14,197. RSI neutral, so the index could continue sideways before confirming trend. The short-term target for the Bulls is 15,000 points. |
| BITCOIN -2.35% |
| Institutional investors are focused on Bitcoin’s rebound. Bulls are hoping to consolidate the bullish path to all-time highs. On the other hand, bears are looking to break the current sideways movement and drive the price towards the USD$10,000 support. The fear and greed index, remains at the fear level. Meanwhile, Grayscale, one of the world’s largest Bitcoin investors, is working on launching an ETF on Bitcoin in Europe. Finally, 40 countries are meeting in El Salvador to discuss Bitcoin. |
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| Support 1: 29,620.0 Support 2: 29,501.0 Support 3: 29,271.1 Resistance 1: 29,969.0 Resistance 2: 30,199.0 Resistance 3: 30,318.0 Pivot Point: 29,850.0 |
| Price is slightly below the 200-day moving average, between resistance 1 and support 1. Expected trading range between USD$29,271 and USD$30,318.0. Pivot point for trend change at USD$29,850. RSI neutral, so the correction could continue towards support 1. Bulls are looking for the ascending channel towards USD$49,000. While the Bears are looking for USD$10,000. |
| WTI +1.39% |
| Weekly US crude oil reserved decreased by 2.4 million barrels. Traders are watching today’s US inventories report, which is expected to increase by 1.3 million barrels, driven by an increase in active oil wells, as a result of increased local and international demand. In the US, local gasoline and diesel prices continue to rise. On the other hand, the US is looking to release some oil restrictions on Venezuela. WTI is currently up 1.39% and is trading at USD$111.28 per barrel. |
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| Support 1: 109.86 Support 2: 109.43 Support 3: 108.81 Resistance 1: 110.91 Resistance 2: 111.53 Resistance 3: 111.96 Pivot Point: 110.48 |
| The price is above the 200-day moving average, between resistance 2 and support 1. Expected trading range between USD$109.43 and USD$111.96. Pivot point for trend change at USD$110.48. RSI neutral, so the price could continue the uptrend towards the next resistance levels. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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