Daily Review for May 05, 2022
The FED raised interest rates by 0.50%, bringing them to 1%. Fed Chairman Jerome Powell announced that two additional rate hikes of 50 basis points each are on the way.
Traders are looking forward to the OPEC meeting. One of the points to be discussed is Russia’s supply shock.
Investor interest in Bitcoin is increasing, mainly due to more aggressive central banks in monetary policy.
This week the Fed and the Reserve Bank of Australia raised interest rates. Today, the Bank of England is expected to raise rates as well. In this sense, a correction began to be seen in the stock markets, mainly on Wall Street.
|The FED raised interest rates by 0.50%, bringing them to 1%. Fed Chairman Jerome Powell announced that two additional rate hikes, by 50 basis points each, will be implemented at the June and July meetings. Today, traders are watching the Bank of England’s interest rate decision. Analysts expect a hike of 25 basis points. Because of the monetary policy moves seen, traders started to buy metals to hedge portfolios. Gold is currently up 1.53% and is trading at USD$1,896 per Troy ounce.|
|Support 1: 1,895.82|
Support 2: 1,894.18
Support 3: 1,890.96
Resistance 1: 1,900.68
Resistance 2: 1,903.90
Resistance 3: 1,905.54
Pivot Point: 1,899.04
|The price is above the 200-day moving average, near resistance 1. If the bullish momentum continues, the price could reach USD$1,936 per Troy ounce. Expected trading range between USD$1,890 and USD$1,905. Pivot point for trend change at USD$1,899. RSI coming out of the overbought zone, so the upward momentum could continue.|
|Traders are looking forward to the OPEC meeting. One of the points to be discussed is Russia’s supply shock. The European Union is seeking to sanction Russia’s energy sector, including embargoes on energy commodities. On the other hand, analysts expect a significant rebound in global fertilizer prices. Norway announced a major plan to export natural gas to the European Union. India is looking to trade Russian oil at USD$70 per barrel.|
|Support 1: 108.05|
Support 2: 107.79
Support 3: 107.33
Resistance 1: 108.77
Resistance 2: 109.23
Resistance 3: 109.49
Pivot Point: 108.51
|The price is above the 200-day moving average, near resistance 2. Expected trading range between USD$107.33 and USD$109.49. Pivot point for trend change at USD$108.51. RSI leaving the overbought zone. Possible sideways movement above the current zone.|
|Investor interest in Bitcoin is increasing, mainly due to more aggressive central banks in monetary policy. Analysts are watching to assess the upward momentum of the price, and the impact on it of the expiration of USD$735 million in Bitcoin options that expire on Friday. On the other hand, Bitcoin payments surpassed those made through Visa. Meanwhile, Coinbase obtained the first bank loan from Goldman Sachs, with Bitcoin as collateral.|
|Support 1: 39,501.4|
Support 2: 39,446.7
Support 3: 39,350.4
Resistance 1: 39,652.4
Resistance 2: 39,748.7
Resistance 3: 39,803.4
Pivot Point: 39,597.7
|The price rebounded sharply from support 1 to the current level near resistance 1. Bitcoin remains above the 200-day moving average, which is a bullish sign for the crypto. Expected trading range between USD$39,350 and USD$39,803. Pivot point for trend change at USD$39,597. RSI neutral, so the upward momentum could continue towards the next resistance.|
|NASDAQ 100 -0.74%|
|This week the Fed and the Reserve Bank of Australia raised interest rates. Today, the Bank of England is also expected to raise rates. In this sense, a correction began to be seen in the stock markets, mainly in Wall Street due to the fact that the cost of capital has increased, so that investors’ demand for capital is lower than the current level of interest rates. When rates rise, there are corrections in the equity market in the short term. The Nasdaq 100 is currently down 0.74% and is trading at 13,422 points.|
|Support 1: 13,447.1|
Support 2: 13,423.0
Support 3: 13,374.8
Resistance 1: 13,519.4
Resistance 2: 13,567.6
Resistance 3: 13,591.7
Pivot Point: 13,495.3
|The price is above the 200-day moving average, correcting some points after reaching resistances 1 and 2. Expected trading range between 13,374 and 13,591. Pivot point for trend change at 13,495. RSI leaving the overbought zone, so the market correction could be maintained towards the next support levels.|
Capitalix Market Research
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