Daily Review for May 11, 2022
Traders are watching the US inflation report, which may or may not accelerate the Fed’s next interest rate hike.
El Salvador bought USD$15 million in Monday’s Bitcoin drop. However, the crypto continues to decline.
Traders are watching Christine Lagarde’s statement as President of the European Central Bank. The ECB is one of the most important banks globally, which has not yet raised interest rates.
Traders are watching the US crude oil inventories report, which is expected to rise by 1.3 million barrels.
| GOLD +0.15% |
| Traders are watching the US inflation report, which may or may not accelerate the Fed’s next interest rate hike. Annual inflation is expected to be 8.1%. The Fed’s inflation target is 2% per year. At the moment the price of gold is up 0.15% and is trading at USD$1,842 per Troy ounce. Depending on the inflation data, gold and silver could correct or increase in investors’ portfolios. Meanwhile, Bitcoin continues to correct, so gold remains the main safe-haven asset against inflation. |
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| Support 1: 1,837.83 Support 2: 1,832.36 Support 3: 1,828.82 Resistance 1: 1,846.84 Resistance 2: 1,850.38 Resistance 3: 1,855.85 Pivot Point: 1,841.37 |
| Price is below the 200-day moving average, just bouncing off support 3. Expected trading range between USD$1,828 and USD$1,855. Pivot point for trend change at USD$1,841. RSI neutral, so the price could continue to rise towards resistance 1. |
| BITCOIN -5.57% |
| El Salvador bought USD$15 million in Monday’s Bitcoin plunge. However, the crypto continues to decline. Bitcoin is currently down 5.57% and is trading at USD$30,530. The price reached selling points of USD$28,000. The panic of investors is due to the performance of TerraUSD, which fell from USD$116 to USD$5.37 in one day, which means a drop of 82.76%. The above panic is generating significant corrections across the crypto industry. At the moment traders are evaluating the best momentum to buy the drop. |
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| Support 1: 30,080.2 Support 2: 29,668.0 Support 3: 28,928.6 Resistance 1: 31,231.8 Resistance 2: 31,971.2 Resistance 3: 32,383.5 Pivot Point: 30,819.6 |
| The price is below the 200-day moving average, which is a bearish signal for Bitcoin. Expected trading range between USD$28,928 and USD$32,383. Pivot point for trend change at USD$30,819. RSI neutral, so the price could continue looking for support levels. The main support is at USD$28,000, a key point to review the rebound. |
| EUROSTOXX 50 +0.40% |
| Traders are watching the statements of Christine Lagarde as President of the European Central Bank. The ECB is one of the most important banks globally, which has not yet raised interest rates, mainly because the bank’s objective has been to support the market recovery. However, inflationary pressure in the Eurozone could trigger the bank’s first rate hike. At the moment the Eurostoxx 50 is up 0.40% and is trading at 3,542. |
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| Support 1: 3,546 Support 2: 3,536 Support 3: 3,524 Resistance 1: 3,568 Resistance 2: 3,580 Resistance 3: 3,590 Pivot Point: 3,558 |
| Price is below the 200-day moving average, close to support 1. Expected trading range between 3,524 and 3,590. Pivot point for trend change at 3,558. RSI neutral, so price could continue to bounce towards resistance 1, depending also on the ECB statements. |
| WTI +2.13% |
| Traders are watching the US crude oil inventories report, which is expected to rise by 1.3 million barrels. Crude oil stocks in the US increased by 1.6 million barrels. This is due to the increase in production by O&G companies, in order to supply local and international demand, mainly in Europe. Oil continues to trade close to USD$100 per barrel. At this moment it is up 2.13% and is trading at USD$101.82 per barrel. |
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| Support 1: 101.69 Support 2: 101.40 Support 3: 100.91 Resistance 1: 102.47 Resistance 2: 102.96 Resistance 3: 103.25 Pivot Point: 102.18 |
| The price is below the 200-day moving average, looking to reach the moving average. Expected trading range between USD$100.91 and USD$103.25. Pivot point for trend change at USD$102.18. RSI neutral, so the price could continue to rise until the trend is confirmed with the inventories report. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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