【Dow Jones】
The Fed finally raised interest rates by 1 yard and this is the first rate hike since December 2018. There is no big fluctuation from the market reaction as it is in line with expectations. From the latest published interest rate news, there will be another 6 rate hikes in 2022. Although the market pulled back slightly, it continued to rise up 500 points.
From the Dow Jones index chart, there is a wave of upward movement after the interest rate decision. The death cross of Alligator is still large as the current movement challenges the downward long-term moving average pressure. KD is still a gold cross but as the market has not been stimulated by buying power for a long period, it could take a while for the buying to accumulate.
USA30-D1
Resistance point 1: 34500 / Resistance point 2: 35000 / Resistance point 3: 35200
Support point 1: 33800 / support point 2: 33200 / support point 3: 32800
【Euro】
In addition to the Fed's interest rate hike, Chairman Powell mentioned that the inflation has exceeded their expectations. The recent War of Russia will also continue to increase the inflation and thus affecting the economy.
The US GDP forecast changed from 4% to 2.8% while inflation expectations changed from 2.7% to 4%. The dollar index had a small increase prior to the news and then began to pull back.
Although the US dollar interest rate decision came out, fluctuations in the euro have not been stimulated. From the technical chart of the daily line, Alligator shows a death cross while KD began to move towards a golden cross. Contradictions began to appear on the technical line but the opening of the Alligator is still large.
EURUSD-D1
Resistance point 1: 1.10800 / Resistance point 2: 1.11200 / Resistance point 3: 1.11800
Support Point 1: 1.10000 / Support Point 2: 1.09500 / Support Point 3: 1.09000
【Gold】
According to the British Financial Times, negotiations between Ukraine and Russia have gradually come up with a draft agreement where Ukraine can retain its military power but must remain neutral and give up joining NATO. It cannot accept foreign military bases or weapons from countries including United States, Britain, and Turkey. The negotiation process is still preliminary on resolving the conflict.
These messages indicate that the conflict between Ukraine and Russia is gradually decreasing. It also means that the safe-haven demand for gold is beginning to gradually decrease.
In terms of gold's daily technical line, Alligator's gold crossover has gradually shrunk and has tangled. The KD has entered a lower figure which indicates that the current buying power on gold is still strong.
The current price of gold has remained at a high level and investors should not trade too aggressively whether it is a long or short.
XAUUSD-D1
Resistance point 1: 1950.00 / Resistance point 2: 1980.00 / Resistance point 3: 2020.00
Support point 1: 1900.00 / support point 2: 1880.00 / support point 3: 1850.00
【Crude Oil】
OPEC, the Organization of the Petroleum Exporting Countries, said it was assessing the crude oil demand and supply in 2022. The vicious inflation caused by the Russo-Ukrainian war is actually reducing the world's energy consumption. it is now oscillating between $90 and $100 a barrel.
From the perspective of the technical line of the daily crude oil, Alligator has begun to tangle while the KD has moved into the low-end figure. This shows that the short-term selling force is stronger than the buying force.
USOIL – D1
Resistance point 1: 96.800 / Resistance point 2: 97.500 / Resistance point 3: 98.200
Support point 1: 95.800 / support point 2: 94.500 / support point 3: 93.800
OneProSpecial Analyst
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