Daily Review for March 17, 2022
The Fed raised interest rates by 0.25%. Traders are watching the ECB and the Euro Zone inflation data. The Bank of England rate hike is expected to increase by 25 basis points to 0.75%.
Ethereum and Bitcoin react positively to the interest rate hike. Both cryptos bounce more than 4%. Ethereum founders announced that version 2.0 will start on the market from June 2022.
Crude oil inventories in the United States increased by more than 4 million barrels. U.S. production is on the rise, as are crude oil and LNG exports to Europe.
Gold prices are starting to rebound due to a possible rate hike by the Bank of England.
| DAX 40 -0.13% |
| Yesterday the FED raised interest rates by 0.25%. They are currently at 0.50%. In other words, the Central Bank of the United States has started the strategy of recovering the inflationary level. The inflation target for the US is 2% per year. Today, traders are looking forward to the European Central Bank’s statement, which may comment on interest rates in the US and the possibility of raising them in Europe. The current inflation rate forecast for the European Union is 5.8% per annum. The DAX 40 is currently down 0.13% and is trading at 14,419 points. European stock markets are mixed at the moment. |
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| Support 1: 14,473.0 Support 2: 14,428.0 Support 3: 14,399.5 Resistance 1: 14,546.5 Resistance 2: 14,575.0 Resistance 3: 14,620.0 Pivot Point: 14,501.5 |
| The price is at resistance 1, where it has started to take sideways movement, while the trend is confirmed. The Ichimoku Cloud projects a trading range between 14,399 and 14,620. Pivot point for trend change at 14,501. RSI near the overbought zone. |
| ETHEREUM +4.18% |
| The Ethereum 2.0 version could be launched in June 2022. Goldman Sachs investment bank now allows its clients to invest in Ethereum. At the moment the crypto is up 4.18% and is trading at USD$2,753. Bulls are looking for USD$3,000. Bitcoin is currently up 3.25% and is trading at USD$40,878. At the moment cryptos have reacted positively to the Fed’s interest rate hike. |
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| Support 1: 2,744.83 Support 2: 2,736.71 Support 3: 2,726.36 Resistance 1: 2,763.30 Resistance 2: 2,773.65 Resistance 3: 2,781.77 Pivot Point: 2,755.18 |
| The price is above the 200-day moving average, which is a bullish signal for Ethereum. Expected trading range between USD$2,726 and USD$2,781. Pivot point for trend change at USD$2,755. RSI near the overbought zone. If the buying volume continues, the price could reach USD$3,017. |
| WTI +3.72% |
| Yesterday, the market expected a 1.3-million-barrel reduction in US crude oil inventories. However, these increased by 4.3 million barrels, which evidenced the increase in production and the release of part of the strategic reserves. The increase in US supply is occurring due to the increase in crude oil exports to Europe. The price has decreased again to levels below USD$100 per barrel. At this moment the price is trying to rebound, rising 3.72% and trading at USD$98.44 per barrel. |
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| Support 1: 97.13 Support 2: 96.42 Support 3: 96.01 Resistance 1: 98.25 Resistance 2: 98.66 Resistance 3: 99.37 Pivot Point: 97.54 |
| The price is above the 200-day moving average, which is a bullish sign for Bitcoin. The crypto reached almost USD$42,000 before turning back towards the USD$40,000 area. If the upward momentum consolidates, the price could reach USD$42,015. Expected trading range between USD$39,153 and USD$40,002. RSI approaching the overbought zone. |
| GOLD +1.72% |
| Traders are looking forward to the Bank of England’s interest rate hike. They also await the European Central Bank’s statement on the European benchmark rates, considering the current inflationary level. Investors therefore started to increase their buying positions in metals such as gold and silver, to mitigate the risk of volatility in their portfolios. Generally, when there are interest rate hikes, equities correct a few points because it means that the cost of money to make investments increases. |
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| Support 1: 1,932.49 Support 2: 1,928.82 Support 3: 1,926.99 Resistance 1: 1,937.99 Resistance 2: 1,939.82 Resistance 3: 1,943.49 Pivot Point: 1,934.32 |
| The price is at resistance 2, where the buying volume of investors continues to rise. Expected trading range between USD$1,926 and USD$1,943. Pivot point for trend change at USD$1,934. RSI near the overbought zone. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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