06/01 Market report

【Dow Jones】

US President Biden met with Fed President Powell on the 31st to discuss the inflation that is emptying the pockets of the American people. Biden said before the meeting that controlling inflation was his top priority. Fed director Christopher Waller said on the 30th that the Fed should be prepared to raise interest rates by 2 yards at each future regular meeting until inflation is firmly under control.

The long-term death cross of the Alligator is about to enter entanglement which indicates that the previous sharp decline has been lifted. At this stage, KD continues to be in the high-end blunting area.

USA30-D1

Resistance point 1: 33500 / Resistance point 2: 33800 / Resistance point 3: 34200

Support point 1: 33000 / support point 2: 32800 / support point 3: 32500

【EUR】

Consumer prices in the eurozone's 19 countries climbed 8.1 percent from a year earlier, up from 7.4 percent in April, according to Eurostat. Energy prices climbed 39.2 percent because of the war and global energy crunch. This made the cost of living for 343 million people in the eurozone more expensive. Eurozone inflation is currently at its highest level since the data began to be published in 1997. The latest data prompted ECB policymakers to raise interest rates from ultra-low levels to dampen upward pressure on prices.

The price of the euro continued to oscillate around 1.07. The KD has officially detached from the high-end blunting area which indicates that the rise is temporarily rested. The current long-term Alligator is still at a golden cross which indicates that the long-term line is still mostly buying strength.

EURUSD-D1

Resistance point 1: 1.07800 / Resistance point 2: 1.08200 / Resistance point 3: 1.08500

Support 1: 1.07000 / Support 2: 1.06800 / Support 3: 1.06500

【Gold】

Stocks fell and U.S. Treasuries are sold across the board. Higher yields on U.S. 10-year Treasuries reduced the attractiveness of zero-yield gold, and a strong dollar made dollar-denominated gold more expensive for overseas buyers.

In the technical indicators of gold, KD death cross is about to fall to the lower blunted area while the Alligator shows a death cross. This means that regardless of the long-term and short-term conditions, the strength of the bears has an advantage. The price of gold at this stage is in the 1800-1850 US dollars per ounce region and the chances of a burst is quite low.

XAUUSD-D1

Resistance point 1: 1850.00 / Resistance point 2: 1870.00 / Resistance point 3: 1900.00

Support 1: 1820.00 / Support 2: 1800.00 / Support 3: 1780.00

【Crude Oil】

The Wall Street Journal reported that if Russian production is not included in the target, it is expected to pave the way for a significant increase in production in Saudi Arabia, the United Arab Emirates (UAE) and other OPEC members.

Russia is the leader of OPEC+ and they agreed last year to increase production every month to slowly lift the production cuts implemented after the COVID-19 outbreak in 2020. Some OPEC members are considering temporarily excluding Russia from the oil production deal as Western sanctions hit Russia's ability to ramp up production.

Crude oil prices is showing a bullish pattern  and yesterday's high-end pull back caused the KD indicator to move out of the high-end blunting area. Long-term Alligator shows a golden cross which indicates that the long-term trend still has an advantage. The short-term KD death cross also indicates that the probability of a pull back in the near future is very high.

USOIL-D1

Resistance point 1: 118.800 / Resistance point 2: 120.500 / Resistance point 3: 123.200

Support 1: 115.500 / Support 2: 113.200 / Support 3: 111.800

OnePro Special Analyst

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