Daily Review for April 04, 2022
The week begins and traders are waiting for the minutes of the March FED meeting. Metals rise, due to the rebalancing of investors’ portfolios.
Wall Street corrects at the moment. However, analysts see a possible rebound driven by interest in equities over fixed income. Also, by the good unemployment rate data in the US.
WTI remains close to USD$100 per barrel. The UK decided to start releasing part of its strategic reserves in the market. Russia announced the sale of commodities in rubles.
The European market starts the week mixed. Traders are looking forward to the ECB rate hike.
|Traders are looking forward to the minutes of the Fed’s March meeting, where the bank’s monetary policy outlook can be analyzed. The Fed raised interest rates by 0.25% in March, setting them at 0.50%. Major U.S. investment banks are projecting 6 additional interest rate hikes due to the current level of inflation. U.S. inflation for the February 2022 to February 2021 reading was set at 7.9%. The inflation target is 2%. For the moment, traders are starting the week balancing their portfolios. Gold is currently up 0.43% and is trading at USD$1,934 per Troy ounce.|
|Support 1: 1,927.61|
Support 2: 1,923.23
Support 3: 1,920.96
Resistance 1: 1,934.26
Resistance 2: 1,936.53
Resistance 3: 1,940.91
Pivot Point: 1,929.88
|The price is near the 200-day moving average, bouncing from support 1. If the trend continues, the price could reach the level of resistance 1. Expected trading range between USD$1,920 and USD$1,940. Pivot point at USD$1,929. RSI neutral so the upward movement could be maintained.|
|DOW JONES -0.19%|
|U.S. nonfarm payrolls were 431,000 versus 490,000 expected. The unemployment rate came in at 3.6% versus 3.7% expected. The yield curve remains inverted, indicating that short-term bond yields are higher than long-term bonds. The FED, analyzing the situation, is maintaining the bond buying program in order to improve long-term bond yields. Traders are looking for yields in Wall Street stock indexes. At the moment, the Dow Jones is down 0.19% and is trading at 34,766.|
|Support 1: 34,721.6|
Support 2: 34,675.3
Support 3: 34,611.1
Resistance 1: 34,832.1
Resistance 2: 34,896.3
Resistance 3: 34,942.6
Pivot Point: 34,785.8
|The index is below the 200-day moving average. Approaching support 1 at 34,440. Expected trading range between 34,611 and 34,942. Pivot point for trend change at 34,785. RSI neutral. Ichimoku Cloud projects price at 34,845.|
|WTI closed last week with a 13% drop generated by Joe Biden’s announcement to release 1 million barrels per day of U.S. strategic reserves, in order to balance market prices. Russia sanctions continues. Germany announced that it may nationalize Russian O&G plants and assets in the country. The UK is also going to start releasing some of its strategic reserves into the market. WTI is currently up 0.74% and is trading at USD$100 per barrel.|
|Support 1: 99.68|
Support 2: 99.40
Support 3: 98.88
Resistance 1: 100.48
Resistance 2: 101.00
Resistance 3: 101.28
Pivot Point: 100.20
|The price is below the 200-day moving average. WTI bounced from support 2. The Ichimoku cloud projects the price between USD$98.95 and USD$103.30. Pivot point for trend change at USD$100.20. RSI neutral, so the rebound could continue.|
|DAX 40 -0.63%|
|European markets start the week with mixed movements. Traders are watching for further announcements from the European Central Bank during the week. In the latest ECB announcement, it was stated that the bank is beginning to remove economic stimulus in Europe. Traders are thus looking ahead to the ECB’s first-rate hike of the year. At the moment the DAX 40 is down 0.63% and is trading at 14,385 points.|
|Support 1: 14,328.6|
Support 2: 14,249.3
Support 3: 14,141.6
Resistance 1: 14,515.6
Resistance 2: 14,623.3
Resistance 3: 14,702.6
Pivot Point: 14,436.3
|The price is below the 200-day moving average. If the price breaks this level, the next support is at 14,204. Expected trading range is between 14,141 and 14,702. Pivot point at 14,436. RSI is neutral, so bears may continue to gain ground.|
Capitalix Market Research
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