05/25 Market report

【Dow Jones】

Snapchat's parent company Snap issued a profit warning after hours on 23rd May and warned that the profit and revenue of this quarter will be lower than estimated. It states that not only social media stocks are hit. The selling pressure of technology stocks are particular heavy. This impacted the already fragile market confidence where investors are worried about the recession.

From the recent price movement of the Dow Jones index, it seems to be a bearish trend that has not went above the previous high. Short-term KD is at a golden cross, while the long-term Alligator is still a death cross. This wave of rise is still considered a rebound pattern.

USA30-D1

Resistance point 1: 32500 / Resistance point 2: 32800 / Resistance point 3: 33200

Support point 1: 31200 / support point 2: 30800 / support point 3: 30200

【EUR】

The euro rebounded strongly on Monday (23Rd) to hit a near-month high as the European Central Bank (ECB) Christine Lagarde released the possibility of ending negative interest rate policy by the end of September. The dollar index has also plunged more than 1%. Lagarde said eurozone deposit rates are expected to emerge from negative territory by the end of September, and if inflation continues to stabilize at 2%, the central bank may raise interest rates further. The current interest rate on eurozone deposits is at -0.5%.

After experiencing 2 interest rate hikes in the US dollar, the euro has finally begun to make some moves on raising interest rates from -0.5% to 0 which is nearly 2 yards. The market for the euro now has some buying force. KD indicators are now in a higher-end area and indicates that in short-term, the euro upward trend is relatively strong.

EURUSD-D1

Resistance point 1: 1.07800 / Resistance point 2: 1.08200 / Resistance point 3: 1.08800

Support point 1: 1.06500 / Support point 2: 1.05500 / Support point 3: 1.04500

【Crude Oil】

Reuters reported that Kadri Simson, the EU's executive committee in charge of energy affairs, said on the 23rd that the European Commission last week proposed to provide 2 billion euros (about $2.1 billion) of funds to countries that rely on Russian crude oil. These affects countries such as Hungary, the Czech Republic and Slovakia, and should help member states reach a consensus and get rid of dependence on Russian energy by 2027.

Although the eurozone has always banned the import of Russian crude oil, all European Union member states must agree to pass the policy. This faces opposition from some countries that must have dealings with Russia to provide their crude oil. KD shows a golden cross, while the Alligator is also at a golden cross. The short-term upward force is stronger.

USOIL-D1

Resistance point 1: 113.800 / Resistance point 2: 115.500 / Resistance point 3: 117.200

Support 1: 109.500 / Support 2: 109.200 / Support 3: 107.800

【Bitcoin】

Scott Minerd, chief investment officer of Wall Street investment bank Guggenheim, predicted on Monday (23rd) that Bitcoin may fall further. It predicts that Bitcoin will fall from its current level to $8,000 which is more than 70% lower than the current price of about $30,000.

ECB President Christine Lagarde also expressed his views on cryptocurrencies, saying they are “worthless”, “unfounded” and require stricter regulation. However, Hungary objected.

Recently, many virtual currencies are still crashing. The first virtual currency, Bitcoin, is also the first to bear the brunt of the impact. Both the KD and Alligator show death crosses.

BTCUSD-D1

Resistance point 1: 29800 / Resistance point 2: 31200 / Resistance point 3: 31800

Support point 1: 29000 / support point 2: 29200 / support point 3: 28800

OnePro Special Analyst

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