07/11 Market report

【Dow Jones】

According to the U.S Bureau of Labor Statistics, the number of non-farm payrolls increased by 372,000 in June and that is higher than Dow Jones' estimate of 250,000. This indicates a year of strong job growth.

The debt market continues to issue recession warnings. The 2-year and 10-year US yields are in reverse. James Bullard (President of St. Louis Fed) and Christopher Waller (Governor of the Federal Reserve) believe that recession fears have been exaggerated by the market and they both maintain a hawkish position in favour of a 3-yard rate hike in July.

The Alligator of the Dow Jones Index presents a death cross which indicates that the long-term Dow is still biased towards the bearish side. The short-term KD has formed a high-end blunt which indicates that the upward force has been more powerful. The key observation would be whether the upward force can break through the previous high. There is a good chance of it going higher.

USA30 Daily Trend: UP

Cut-off point: 30342

Current Transactions: Hold long positions with targets at 31500 and 31800

Alternatives: If broken below 30342, turn short and set 30200 and 30000 as targets after directly entering the market.

Comments: RSI 49.8% is on the bearish side.

【Euro】

As investors predict that a soaring inflation rate will lead to a recession in the eurozone, the EURUSD exchange rate should depreciate $1.01 today and approach parity.

Traders have pointed out that another factor in the EURUSDs selling pressure is that the US Federal Reserve Board (Fed) raised interest rates more violently than the European Central Bank (ECB).

In addition to the long-term Alligator death cross, the short-term KD is in a low-end pattern. Both long-term and short-term lines are biased towards the bearish side. Investors are recommended to look at the market as bearishly as possible and not guess the bottom.

EURUD Daily Trend: DOWN

Cut-off point: 1.02229

Current Transactions: Hold short positions with targets at 1.01500 and 1.01200

Alternatives: After being broken above 1.02229, turn long and set 1.02500 and 1.02800 as targets after direct entry.

Comments: RSI 27.3% is on the bearish side.

【Gold】

The World Gold Association released its 2022 mid-year report on July 7 saying that in the first half of this year, Gold was one of the best performing assets in the financial market. However, the challenges in the gold market will also increase in the second half of the year.

At present, the gold market is still mainly affected by the US federal reserve's sharp interest rate hike but some analysts have begun to believe that the final rate increase of the Fed may not be as large as expected. This is because the US economy is at risk of recession.

In Gold's daily technical chart, Alligator shows a death cross while the KD is in a low-end pattern. Both the long-term and short-term lines are biased towards the short side. Investors should try to look at the market as bearishly as possible and not guess the bottom.

XAUUSD Daily Trend: DOWN

Cut-off point: 1773

Current Transactions: Hold short positions with targets at 1735 and 1732

Alternatives: If broken above 1773, turn long and set 1788.00 and 1780.00 as targets after direct entry.

Comments: RSI 26.48% the market is bearish.

【Crude Oil】

Sri Lankan Prime Minister Vikri Misingh told Parliament on 5th July that the country had gone bankrupt and Sri Lanka was facing fuel shortages.

Energy Minister Vijcekra said: Domestic crude oil stocks have less than a day left.

Some people were so angry that they took to the streets to resist the demonstrations but unexpectedly encountered supporters of the government and broke into demonstration. There was a serious clash between the two sides and the mass riots caused heavy casualties.

In order to solve the fuel problem, Sri Lanka sent representatives to Russia in search of crude oil.

In the daily technical chart of crude oil, Alligator shows a death cross which indicates that the long-term crude oil is still bearish. The short-term KD is at a golden cross which indicates that the short-term buyer's strength is stronger. The probability of crude oil challenging the previous wave highs is high.

USOIL Daily Trend: UP

Cut-off point: 102.26

Current Transactions: Hold long positions with targets at 103.8 and 104.2

Alternatives: If broken below 102.26, the direction is turned short, and after entering the market, 101.20 and 100.80 are set as targets.

Comments: RSI 44.3% the market is bearish.

OnePro Special Analyst

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The foregoing is a personal opinion only and does not represent any opinion of OnePro Global, nor is there any guarantee of reliability, accuracy or originality in the foregoing.

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