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Market Update by Solidecn.com

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AUDUSD, the pair is testing 0.72 for a breakout

The Australian dollar shows a slight increase against the US dollar during the Asian session, again testing 0.72 for a breakout. Market activity remains subdued as market participants await the publication of the minutes of the US Federal Reserve meeting, which is likely to mark a 25 basis point hike in rates and the beginning of a cycle of systematic tightening of monetary policy.

Meanwhile, investors are assessing the prospects for a slowdown in the Chinese economy as the country is once again forced to impose quarantine restrictions on more than 45 million people in two industrial centers in an attempt to stem the surge in cases of coronavirus caused by a new stealth omicron variant. Most of the infected were recorded in Jilin province, as well as in the city of Shenzhen, and just a day earlier, about 1.9 thousand new cases of virus infection were detected in the country. Commodity prices have fallen sharply amid the introduction of quarantine restrictions, as well as fears of disruptions in global supply chains. Pressure on the position of the Australian currency is also exerted by the stabilization of the situation on the commodity markets, in particular, on the metal market.

Tomorrow, investors are looking forward to the publication of the February report on the Australian labor market, which may help the Reserve Bank of Australia (RBA) take a tougher stance on monetary policy in the future. It is projected that the Employment Change in the country will accelerate from 12.9 thousand to 37 thousand, while the Unemployment Rate will decrease from 4.2% to 4.1%. Markets are betting that the inflationary momentum will increase and force the country's financial authorities to raise interest rates by 0.1% as early as June.

Resistance levels: 0.725, 0.73, 0.7366, 0.744.
Support levels: 0.7164, 0.71, 0.705, 0.7.

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EUR/USD, downtrend continues

In February, the Consumer Price Index in annual terms rose by 0.7% to 5.8%. Experts believe that prices will continue to increase in the future, which negatively affects the euro, which is still trading in a downtrend. At a meeting held on March 10, the European Central Bank (ECB) left interest rates at 0.00%. The European regulator’s lack of response to rising inflation is explained by problems within the region’s economy: the labor market has not recovered enough from the COVID-19 pandemic, real wage growth remains low, and there are also problems in the supply chains of goods.

The long-term trend is downward. Last week, the resistance level of 1.1100 was tested, which, however, was held, leading to a fall in the price and a breakdown of support at 1.1000. Now the level of 1.1000 is a resistance, from which new sales can be considered with the target at 1.0800.

The mid-term trend is still downtrend. The key trend resistance is in the area of 1.1115. Additional resistance is marked at 1.1017‚Äď1.0997. The target of the decline is target zone 4 (1.0790‚Äď1.0773).

Resistance levels: 1.1000, 1.1100, 1.1195.
Support levels: 1.0800, 1.0655.

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Bank of America, technical analysis

On the 4-hour chart, there is a formation of a Bullish Belt Hold candlestick analysis pattern after the opening of trading with an upward gap at 41.03. Next, a "bullish" Engulfing pattern was formed, which signals the activation of buyers and indicates a possible price reversal. In the current situation, one can consider opening deals to buy from the level of 42.34 with the target at 44.73-49.43. In case the asset drops to the support level of 40.23 and overcomes it, the quotes may continue to decline to the area of 38.65 - 34.88.

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EURUSD. consolidation near 1.1

The European currency shows mixed dynamics of trading against the US dollar during the Asian session, consolidating near 1.1 and local highs from March 10.

The day before, the instrument managed to demonstrate a fairly active growth, despite the publication of the decision of the US Fed on the planned increase in interest rates by 25 basis points for the first time since 2018. Committee members voted almost unanimously (8 people participating in the meeting voted for the increase), which launched the indicator adjustment cycle. In total, 6-7 increases of 0.25% each are expected this year. In addition, the regulator intends to start reducing its 8.9 trillion dollar balance sheet at one of the next meetings. It is worth noting that the "hawkish" rhetoric of the US financial authorities is aimed at curbing maximum inflation, which reached 7.9% in February on an annualized basis, showing the highest result in 40 years. The Chair of the US Federal Reserve, Jerome Powell, noted that the increase in the cost of energy and other goods against the backdrop of a special operation carried out by the Russian authorities in Ukraine will become an additional factor in increasing consumer prices in the short term and will exceed the target value of 2%. At the same time, it should be noted that the decision of the regulator provoked only a short-term growth of the dollar, since the traders have already managed to put this event into quotes.

In turn, the euro is supported by hopes for a peaceful resolution of the conflict between Russia and Ukraine. Traders are hoping for progress in the negotiation process, citing comments from officials from both countries as arguments.

Today, the focus of investors is on the February statistics on consumer prices in the euro area, as well as the speech of the President of the European Central Bank (ECB), Christine Lagarde.

Resistance levels: 1.1051, 1.11, 1.115, 1.1185.
Support levels: 1.1, 1.0957, 1.09, 1.086.

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USDCHF, "bulls" failed to develop an upward momentum

The US dollar showed mixed dynamics against the Swiss franc during the morning session, consolidating near 0.9400. The day before, USD/CHF showed a sharp increase, having updated record highs since April 2021, but then the "bulls" began to quickly lose the initiative.

The reason for the emergence of positive dynamics was the outcome of the meeting of the US Federal Reserve, which raised the interest rate by 25 basis points. At the same time, the market put such growth into quotes a long time ago, and only a correction by 50 basis points could have contributed to a more active reaction. Instead, the regulator limited itself to reports about the imminent start of reducing its own balance sheet, which currently reaches almost 9 trillion dollars. The Chair of the US Federal Reserve, Jerome Powell, noted the impact of a special military operation in Ukraine, initiated by the Russian authorities, on the American economy, stressing that the current situation could significantly worsen logistics and complicate supply chains. Meanwhile, investors hope for a successful negotiation process between representatives of Russia and Ukraine, aimed at a ceasefire and the withdrawal of Russian troops from the territory of Ukraine.

The focus of traders today will be on a block of statistics on imports and exports in Switzerland in February. In addition, the publication of consumer prices in the eurozone for February is expected, as well as a meeting of the Bank of England, at which the rate may be increased for the third time in a row.

Resistance levels: 0.943, 0.9459, 0.95.
Support levels: 0.9372, 0.9341, 0.93, 0.9271.

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GBPUSD, the market is waiting for the decision of the Bank of England

The UK currency is in the stage of a local upward correction in anticipation of the decision of the Bank of England on the interest rate, which will be taken today at 14:00 (GMT+2). Now the GBPUSD pair is trading around 1.3156.

The vast majority of currency market analysts assume that the regulator will raise the interest rate for the third time by 25 basis points and bring it to 0.75% amid rising inflation and a negative situation on the national labor market. Official macroeconomic statistics showed the highest increase in consumer prices since 1992, which amounted to 5.5% for January compared to the same period in 2021. The volume of asset buybacks is projected at the same level of 875B pounds. According to analysts, today's possible increase in the rate is only one of the stages of a large-scale program, under which the rate could be increased to 1.50% by the end of 2022.

As for the US dollar, all the expectations of investors and analysts have completely justified: the US Federal Reserve raised the interest rate from 0.25% to 0.50%, but this had almost no effect on the dollar quotes. Moreover, the US currency fell slightly and is now trading around 98.300 points in the index. In an accompanying statement, the regulator noted that due to the military conflict in Ukraine, inflation would be difficult to contain, and soon the figure may increase again. Despite this, the US financial authorities intend to continue to influence inflationary pressures by raising rates, which will eventually lead to achieving the target value of 2%.

Resistance levels: 1.3266, 1.36.
Support levels: 1.2997, 1.28.

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Crude Oil, possible supply disruptions push the price up

During the Asian session, prices for WTI Crude Oil are growing moderately, developing the "bullish" momentum formed last Wednesday, when the instrument was trading near local lows since February 25. By the end of the week, "black gold" quotes are trying to consolidate above the psychological level of 100 dollars per barrel, reacting to the uncertainty about oil supplies from Russia.

Meanwhile, Russian troops continue to conduct a special operation on the territory of Ukraine, which has already met with sharp opposition from the Western world. Countries and private companies are refusing to buy Russian energy resources, and the current situation is destabilizing the balance of supply and demand in the market even more. According to the International Energy Agency forecast, in April, Russia may reduce production by 3M barrels per day to 8.6M barrels amid the refusal of buyers from exports amid economic restrictions imposed on the country. Currently, only Saudi Arabia and the United Arab Emirates have the opportunity to increase production to compensate for supply problems.

Pressure on oil quotes in the middle of the week was exerted by a report published by the US Department of Energy on the dynamics of energy stocks for the week of March 11. Contrary to forecasts of a further moderate decline of 1.375M barrels, the figure rose by 4.345M. At the same time, gasoline inventories fell more than expected, while US oil production remained unchanged. The increase in the indicator is likely associated with the decision of President Joe Biden to release part of the strategic reserves of "black gold" to reduce prices, but US oil reserves are not unlimited. According to analysts, they can only last for one month.

Resistance levels: 105, 107.67, 110, 114.51.
Support levels: 103, 100, 96.00, 93.97.

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AUDUSD, consolidation near 0.74

Last week, AUDUSD showed one of the most significant gains in the past few months, quickly recouping last Monday's losses that led to new local lows since the end of February. Even the results of the two-day meeting of the US Federal Reserve, where the interest rate was raised by 25 basis points to 0.50%, did not put pressure on the quotes. The regulator's decision marked the launch of a rate adjustment cycle in 2022, which, according to preliminary estimates, could consist of seven rate hikes. In addition, the Fed announced a reduction in its balance sheet, which is currently estimated at nearly 9 trillion dollars, in the next few months.

The rhetoric of US Federal Reserve Chairman Jerome Powell this week, as well as the US President Joe Biden's meeting with North Atlantic Treaty Organization allies to discuss the possibility of a diplomatic solution to the conflict in Ukraine, will be crucial for the short-term dynamics of AUD/USD. In addition, investors will be watching the rhetoric of the People's Bank of China on the interest rate. Today, the country's financial authorities have left the base lending rate at 3.7%, despite the development of the pandemic in the region. Thus, Australia, as a leading exporter to China, may face an increase in buying activity if the local regulator adjusts the figure.

The macroeconomic statistics released on Friday from the US contributed to additional "bullish" dynamics for the Australian dollar. US Existing Home Sales in February showed a decline of 7.2% after rising 6.6% a month earlier, although analysts had expected a decline of 1.0%.

  • Resistance levels: 0.744, 0.75, 0.755, 0.76.
  • Support levels: 0.7366, 0.73, 0.725, 0.7164.

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Brent Crude Oil, oil prices have returned to growth

The quotes returned to positive dynamics at the end of last week after renewing local lows on February 25 in response to a further deterioration in the situation around Ukraine. Russian troops have been carrying out a special military operation since the end of February, resulting in unprecedented sanctions pressure from Western countries. Thus, the US authorities earlier announced that they were refusing to import Russian energy carriers, but Europe, due to the close connection of energy systems, could not fully support such a ban since it is 40% dependent on Russian gas supplies. Nevertheless, several European countries intend to minimize supplies until the end of this year. In particular, the authorities of the Baltic countries insist on the introduction of a complete ban, but Germany refuses to support the embargo. Analysts do not rule out that Europe will also try to lobby for a complete ban on Russian energy imports, but the position of France, which currently chairs the European Union, may play a key role here.

The situation in the Middle East also remains alarming, where Saudi Arabia reports new attacks by the Yemeni Houthis on oil facilities. Finally, experts are concerned about the surge in the incidence of COVID-19 in China, which is one of the main consumers of oil and petroleum products in the world. The country's authorities adhere to a zero-tolerance policy against the coronavirus. Therefore, they introduce large-scale restrictions in response to even isolated cases of infection.

Resistance levels: 112, 115, 118, 121.
Support levels: 108, 105, 102, 100.

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EURUSD, the euro develops a corrective decline

The European currency shows a moderate decline against the US dollar during the Asian session, again testing 1.1000 for a breakdown. Demand for risky assets remains quite low at the beginning of this week, as the growing geopolitical tensions keep investors from opening new trading positions.

At the moment, Russian troops continue to conduct a special military operation on the territory of Ukraine, which causes a reaction from Western states regarding new restrictions. This week the EU is preparing to consider the introduction of a new, fifth package of sanctions against the Russian economy. Today, a meeting of representatives of the EU secretaries of defense and foreign affairs will be held in Brussels, where the main topic of the agenda will be the situation in Ukraine. EU High Representative for Foreign Affairs and Security Policy Josep Borrell will present a report on possible scenarios for further developments in the situation.

Among other things, the new measures may include the introduction of a moratorium on the import of Russian oil and gas, similar to the one currently in force in the United States. However, the position of European states on this matter is still extremely ambiguous. Given high energy prices, the withdrawal of Russian resources could trigger further price pressures. In particular, Germany, which fears for its energy security, opposes the embargo.

The macroeconomic statistics from Germany published today did not have a noticeable impact on the dynamics of the instrument. Thus, the Producer Price Index in February slowed down growth from 2.2% to 1.4%, which turned out to be worse than the market's expectations of an increase of 1.7%. On an annualized basis, industrial inflation accelerated from 25% to 25.9%, only slightly falling short of the expected 26.1%.

Resistance levels: 1.1051, 1.11, 1.115, 1.1185.
Support levels: 1.1000, 1.0957, 1.09, 1.086.

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WTI Crude Oil, pending EU decision on a Russian oil embargo

The price of North American WTI Crude Oil is correcting within an uptrend, trading around 112.56.

The geopolitical situation remains extremely tense, and new market drivers arrive almost daily. Thus, before the meeting of EU foreign ministers, which is scheduled to discuss the issue of a possible rejection of Russian oil, some officials have already called for a complete blockade. In particular, representatives of Lithuania and Ireland supported this option. However, experts agree that it is impossible to completely block the import of "black gold" since the EU countries consume up to 30% of Russian oil and up to 80% of diesel fuel. The aggressive rhetoric of the authorities was a response to the decision of the Russian president to conduct a special military operation on the territory of Ukraine. Since it has not yet been possible to reach a consensus on resolving the conflict, the European authorities are already preparing the fifth sanctions project for an extraordinary summit of EU leaders, scheduled for March 24. US President Joe Biden is also expected to attend the meeting in Brussels. Seeing how the EU countries have already adopted several self-critical sanctions, investors are afraid of unexpected decisions, and oil contracts are actively rising in price.

Additional support for the quotes of the asset was provided by reports from Saudi Arabia, where another attempt was made to attack the Houthi rebels on the oil infrastructure of Saudi Aramco. Although the damage from the attack was small, the cases that have become more frequent recently pose a real threat to the infrastructure.

Resistance levels: 114.80, 123.50.
Support levels: 107.70, 93.60.

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GBPUSD, The US Federal Reserve is ready to accelerate the key rate hike

The US currency grows due to comments by US Federal Reserve Chairman Jerome Powell, who yesterday confirmed the regulator's readiness to fight further inflation, which is likely to support the dollar's position. In particular, the official acknowledged that the national labor market is showing positive dynamics at present, but the rise in prices is also very high. The agency will continue to raise rates until inflation in the country reaches its target, while the pace of changes can be accelerated. According to Jerome Powell, the US Federal Reserve has greatly underestimated the duration of high inflationary pressure and is ready for more aggressive steps to stabilize the situation.

British investors are still in a state of uncertainty before Wednesday's key releases ‚Äď the publication of February inflation data, the presentation of the new budget, and the comments of the head of the Bank of England Andrew Bailey. The consumer price index is expected to rise to 5.9%, and the chairman of the British regulator will comment on this situation. The Bank of England is also expected to continue raising rates to prevent consumer price increases, despite the risks associated with the Ukrainian crisis. Chancellor Rishi Sunak, who represents the budget, is expected to take tax breaks as the authorities promised to help British households suffering from rising living costs.

Resistance levels: 1.3183, 1.3305, 1.3427.
Support levels: 1.3060, 1.2939, 1.2817.

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Gold, a backlash against the "hawkish" rhetoric of the US Fed

The official said that the regulator is ready to raise the rate immediately by 50 basis points at one or more of the next meetings and will soon launch a program to reduce the balance sheet, according to the latest estimates, reaching 9T dollars. Also, The Goldman Sachs Group Inc. analysts forecast two adjustments of 50 basis points at once from the next meeting and then four increases of 25 basis points before the end of the year. The "hawkish" tone of Powell's remarks spurred US bonds higher and affected the bond market, with the US dollar index turning sideways around 98.500 amid heightened investor attention to risky assets and the yield on 10-year US Treasury bonds reached 2.81%. Against this background, gold has expectedly declined, although the demand for shelter assets has generally remained very high in recent days.

The metal is supported by the expectations of new packages of EU sanctions against the Russian economy. This week, EU leaders will meet to discuss the fifth package of restrictive measures that could include a broader ban on Russian energy imports. It is worth noting that there is no single position on this issue: Germany opposes a complete ban while not excluding the possibility of finding alternatives.

Resistance levels: 1930, 1952.5, 1974.2, 2000.
Support levels: 1900, 1877.6, 1860, 1840.

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Brent Crude Oil, "black gold" returned to growth

Brent Crude Oil quotes continue to recover after a significant correction last week and are currently in the 116.70 area.

Fears that China will seriously reduce energy consumption due to a new outbreak of the coronavirus pandemic have not yet been justified, and peace negotiations between Russia and Ukraine have stalled, which again brought price support factors back to the fore. The possibility of new sanctions against Russian oil supplies and the lack of progress on the "nuclear deal" with Iran, which the market has been waiting for several weeks, is acting as a catalyst for the demand that is currently impossible to cover since the largest producers, Saudi Arabia and the United Arab Emirates, are not able to quickly increase production. Also, the oil infrastructure of Saudi Arabia is periodically attacked by the Yemeni Houthis, which creates problems for the export of "black gold" to the market.

Among the short-term factors for the growth of the trading instrument, the American Petroleum Institute (API) report published yesterday recorded a reduction in US inventories by 4.280M barrels at once instead of the expected growth by 0.025M barrels and a reduction in oil exports via the Caspian pipeline by 1.0M barrels per days due to damage requiring repair. The likely refusal of the EU countries to impose an embargo on supplies from Russia cannot seriously slow down the growth of quotations. It is already being taken into account by the market, as the leader of the European economy, Germany, opposes such measures.

Resistance levels: 117, 125, 132.
Support levels: 110.7, 100, 92.8.

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USDCHF, trading within the global ascending channel

The Swiss currency is slowly losing its strong position against the US dollar, trading around 0.9344.

Yesterday, the President of the country, Ignazio Cassis, addressed the nation with the rationale for the country's refusal of a neutral position and the imposition of sanctions against the Russian Federation against the backdrop of a special military operation in Ukraine. According to Cassis, this decision could have negative consequences for the economy, including higher utility prices due to high dependence on Russian gas and oil, accelerated inflation due to disruptions in supply chains, and retaliatory sanctions from the Russian Federation. Finally, the franc will remain a shelter asset, which will harm exports.


On the global chart of the asset, the price is moving within the global ascending channel, approaching the resistance line. Technical indicators keep a stable buy signal: fast EMAs on the Alligator indicator are above the signal line, and the AO oscillator histogram trades in the buying zone.

Resistance levels: 0.937, 0.95.
Support levels: 0.9302, 0.9151.

usdchf_1.png.be1f4c57a134117bbd2e2e2881fc0b15.png

 

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NZDUSD, the instrument retreats from local highs

The New Zealand dollar shows the development of downward corrective trend in tandem with the US currency during the Asian session, again testing the level of 0.695 for a breakdown. The NZDUSD pair has been retreating from its local highs since November 2021 without testing the strong resistance at 0.7 for a breakout.

The development of the "bearish" dynamics on the instrument is supported by technical factors, while the position of the US currency on the market changes slightly and remains quite strong against the backdrop of worsening economic prospects as the conflict over Ukraine, where Russian troops continue to conduct a special military operation, develops. Western countries are increasing sanctions pressure on the Russian economy, despite the noticeable back-effect of restrictions. The most important issue at the moment remains a potential embargo on Russian energy imports, which is likely to provoke a sharp complication of the situation in the European energy sector and lead to even greater inflationary pressures.

The positions of the New Zealand dollar are quite strong against the backdrop of trends in commodity areas. At the same time, analysts are paying attention to new outbreaks of coronavirus in New Zealand. Over the past day, more than 18K new cases of infection were detected in the country. Despite the pandemic, New Zealand's GDP returned to growth in the last quarter of 2021, but the increase was only 3.0%, falling short of economists' expectations of growth of 3.2%.

Resistance levels: 0.7, 0.704, 0.71, 0.715.
Support levels: 0.6924, 0.69, 0.6866, 0.684.

nzdusd.png.9cb68d0543c4ac1fd49c21d7ad997a7e.png

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Silver, the price is consolidating near 25

Silver prices show a moderate decline during the Asian session, correcting after a fairly strong increase the day before on the back of lower yields and risk aversion in financial markets. However, the USD Index is rising for the second day in a row, renewing an intraday high around 98.800, adding 0.14%. XAG/USD is again testing 25 for a breakdown; however, there are not so many drivers for the development of the "bearish" trend.

The "hawkish" rhetoric of the US Federal Reserve had only a brief downward effect on safe-haven assets, after which the demand for silver, gold and a number of other trading instruments began to recover again. Traders are concerned about the uncertainty posed by the conflict in Eastern Europe ahead of US President Biden's meeting with his North Atlantic Treaty Organization (NATO) allies in Brussels. The special military operation carried out by Russian troops in Ukraine has been going on for a month already, while it is still premature to talk about the prospects for its completion. The peace talks, which continue to this day, have not led to any clear results due to the cardinal contradictions in the positions of the parties.

At the end of the week, investors expect an emergency EU summit to consider new sanctions against the Russian economy. The focus will be on the issue of a possible embargo on energy supplies from the Russian Federation to the EU countries. In addition, according to US Senator John Cornyn, he met with US Treasury Secretary Janet Yellen to discuss sanctions on Russian gold.

Resistance levels: 25.35, 25.58, 26, 26.27.
Support levels: 25, 24.67, 24.42, 24.

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Germany's energy sector faces new challenges

The key news for the market is the statement of the President of the Russian Federation Vladimir Putin, who instructed to convert all payments for natural gas supplies into rubles as soon as possible, and for the first time, the new technology will be tested in Europe. It will create some difficulties for buyers. According to German Economy Minister Robert Habeck, although the country considers such a decision to be a violation of contractual obligations, it is still impossible to refuse gas supplies from Russia. Later, the head of the Bundestag Committee on Economics and Energy, Klaus Ernst, noted that it is technically possible for Germany to pay for fuel in Russian rubles but this forces energy consumers to bypass their own sanctions restrictions, which is not entirely logical.

On the global chart, the price moves within the correction to the previous decline. Technical indicators keep a sell signal, which has almost been cancelled: indicator Alligator’s EMA fluctuations range narrowed almost completely, and the histogram of the AO oscillator reached the transition level.

Resistance levels: 14555, 15350.
Support levels: 14000, 12600.

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GBPUSD, UK inflation rises again

CPI rose by 0.8% MoM for February, which contributed to an increase in the annual rate to 6.2%. The core retail price index increased to 8.3% YoY, exceeding the January value of 8.0%. In general, the negative dynamics was predicted by analysts but they assumed that the February inflation would not be higher than 5.9%. Talking about estimates for a longer term, the figures are about 7.0% by the middle of the year, which will require serious steps from the Bank of England.

The US dollar index made a slight upward spurt, reaching 98.800 against the background of the rhetoric of several US Federal Reserve officials. Thus, Cleveland Fed Chairman Loretta Mester said she considers it reasonable to raise the interest rate to at least 2.5% by the end of this year since any other increase will not be able to cope with record inflation. Her colleague, the head of the San Francisco Fed, Mary Daly, also adheres to the rapid pace of adjusting the value but believes that it will be enough to sharply raise the rate by several levels at once, after which economic growth and consumer prices will stabilize.

The GBP/USD pair move within the global downward channel and, reversed at the support line, are heading upwards. Technical indicators keep a sell signal: indicator Alligator’s EMA fluctuations range remains wide, and the histogram of the AO oscillator is in the sell zone.

Resistance levels: 1.3259, 1.3513.
Support levels: 1.3100, 1.2900.

gbpusd.png.f95a9e4fa0d5dae34f8c70813115ee88.png

 

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AUDUSD, the uptrend is possible

AUDUSD continues to grow for the second month in a row and has tested 0.7500 this week. The positions of the trading instrument are supported by actively growing prices for raw materials exported from Australia, as well as the expectation of an early increase in rates from the Reserve Bank of Australia (RBA).

Australia's February Unemployment Rate was released last week. The indicator fell from 4.2% to 4.0% and reached the target level provided by the Australian regulator to start tightening monetary policy. The only limiting factor for the RBA now remains the uncertainty associated with the crisis in Eastern Europe. Today's preliminary March data on business activity in the country turned out to be positive. Commonwealth Bank Manufacturing PMI increased from 57.0 to 57.3 points, and the Services PMI increased from 57.4 to 57.9 points. Experts, however, fear that business activity will begin to decline in the near future, as it will be negatively affected by rising energy prices and the results of the recent flooding in Australia.

The positions of the US dollar look less stable, as investors are concerned about the too weak rate hike by the US Federal Reserve, which is unlikely to contain inflation. Probably, the officials of the regulator understand this as well, since during the week many of them advocated a 0.50% rate correction in the future. This prospect is admitted by the President of San Francisco Fed, Mary Daly, the President of St. Louis Fed, James Bullard, and the Cleveland Fed President Loretta Mester; however, the decision to accelerate the rate of increase may not be made by the regulator until May.

Resistance levels: 0.7507, 0.757, 0.789.
Support levels: 0.7415, 0.7325.

audusd.png.0aceb57910bc05de9a5233b1c26554c3.png

 

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