Daily Review for April 07, 2022
Fed minutes make investors nervous. The interest in further interest rate hikes, makes the equity market correct.
Cryptos continue to correct. Bitcoin falls about 5%. However, the focus is on the Bitcoin 2022 event in Miami, which will be attended by market experts. The crypto bull statue was unveiled at the event.
The United States announced the release of 120 million barrels of strategic reserves to the international market. The price dropped after the announcement to the level of USD$95 per barrel.
Traders expect a rebound in Wall Street stock indexes. The Dow Jones is looking for 35,000 points.
| GOLD +0.12% |
| The market reacted to the FED minutes, in which the bank expressed its interest in continuing to raise interest rates during the course of the year. This generated a correction in equities, with the Eurostoxx 50 falling by -2.38% and the Nasdaq 100 by -2.22%. At this moment, European stock markets are bouncing back and trying to recover from yesterday’s losses. Traders are watching the minutes of the European Central Bank, mainly on tapering as a measure to reduce economic stimulus. |
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| Support 1: 1,921.29 Support 2: 1,919.37 Support 3: 1,918.34 Resistance 1: 1,924.24 Resistance 2: 1,925.27 Resistance 3: 1,927.19 Pivot Point: 1,922.32 |
| The index is below the 200-day moving average. The Ichimoku cloud projects a sideways movement towards USD$1,927. Expected trading range between USD$1,918 and USD$1,927. Pivot point for trend change at USD$1,922. RSI neutral. If equities continue to correct, there could be upward movement of the metal. |
| BITCOIN -4.47% |
| Bitcoin continues to fall due to investors’ risk aversion. The main cause of the price drop was the Fed minutes, where the bank plans to continue removing economic stimulus, and also the possibility of the European Central Bank’s interest rate hike. On the other hand, the Bitcoin 2022 event began, a cryptocurrency event in Miami, where industry experts will present their ideas and innovations on Bitcoin and other cryptos. The crypto bull statue was also unveiled. The president of El Salvador, Bukele will participate in the event. |
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| Support 1: 43,326.6 Support 2: 43,253.3 Support 3: 43,168.6 Resistance 1: 43,484.6 Resistance 2: 43,569.3 Resistance 3: 43,642.6 Pivot Point: 43,411.3 |
| The price is below the 200-day moving average, which is a bearish signal for Bitcoin. The price fell to the USD$42,666 support and then tried to bounce back to the current level. However, a rebound could occur due to buying interest at this level. RSI in oversold zone. |
| WTI +1.29% |
| Crude oil inventories in the United States increased by 2.4 million barrels. The market, on the contrary, expected them to decrease by 2 million barrels. This caused prices to correct towards USD$95 per barrel. At this moment the price is bouncing back 1.29% and is trading at USD$97.35 per barrel. The price correction was also generated by the announcement of Joe Biden and the IEA, to release 120 million barrels of strategic reserves to the market. |
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| Support 1: 97.30 Support 2: 96.94 Support 3: 96.55 Resistance 1: 98.05 Resistance 2: 98.44 Resistance 3: 98.80 Pivot Point: 97.69 |
| The price is below the 200-day moving average. WTI rebounded from the support at USD$95.80. Expected trading range between USD$96.55 and USD$98.80. Pivot point for trend change at USD$97.69. RSI neutral, so the price could recover additional points. |
| DOW JONES -0.11% |
| The index is looking for a rebound from the current zone towards the 35,000 resistance. Traders are paying close attention to the economic performance in the United States. At the moment, inflation remains well above the inflation target of 2%, thus the interest of the FED to continue raising interest rates. The Dow Jones is currently down 0.11% and is trading at 34,368 points. Traders are looking for a rebound from this area. |
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| Support 1: 34,384.1 Support 2: 34,308.3 Support 3: 34,264.2 Resistance 1: 34,504.0 Resistance 2: 34,548.1 Resistance 3: 34,623.9 Pivot Point: 34,428.2 |
| Double bottom at 34,179. The index is looking for a rebound from this area. However, it is still below the 200-day moving average, which takes strength away from the Bulls. Expected trading range between 34,264 and 34,623. Pivot point at 34,428. RSI neutral, so the index can recover positions. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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