06/07 Market report

【Dow Jones】

In terms of politics and economics, the United States has recently offered a lot of tariffs. Foreign media reported on Monday that US President Biden is expected to announce exemptions from tariffs on solar cells imported from four Southeast Asian countries (Cambodia, Malaysia, Thailand and Vietnam) for up to 2 years. This encouraged solar stocks to go higher. U.S. Commerce Secretary Gina Raimondo confirmed on Sunday (5th June) that Biden had ordered the ruling team to assess options for removing some of the tariffs imposed on Chinese mainland imports to counter hyperinflation.

The Alligator of the Dow presents a golden cross while the KD shows a death cross. This indicates that the Dow is oscillating between the long and short forces and waiting for a clearer break through. KD's short-term strength is stronger at this stage and the market should be slightly pulled back.

USA30-D1

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

Support point 1: 32500 / support point 2: 32000 / support point 3: 31500

【EUR】

The Federal Reserve will announce its June interest rate decision next week and it is widely expected to raise interest rates by 50 basis points (2 yards).

On the eve of the central bank meeting, investors will be paying attention to the consumer price index (CPI) on Friday (10th June) for any clues related to the future path of interest rate increases.

The EURUSDs Alligator shows a death cross while the KD shows a golden cross. This indicates that the euro is currently in a long-short battle between buyers and sellers. At this stage, not only is the US dollar in a rate hike, the euro is also in an interest rate increase. Investors will be assessing the strength of the interest rate hikes between the two.

EURUSD-D1

Resistance point 1: 1.07200 / Resistance point 2: 1.07800 / Resistance point 3: 1.08200

Support point 1: 1.06200 / Support point 2: 1.05500 / Support point 3: 1.05200

【Gold】

U.S. stocks plunged into a decline on Friday by a strong non-farm payrolls report. On Monday, it shrugged off the decline and closed higher with the help of bullish U.S.-China policy support. The market has now shifted its focus to the May inflation report.

Gold prices were weighed down by the U.S. Treasury yields which rose below 3 percent on Monday. It is still below the 3.124 percent touched on May 6. High yields raise the opportunity cost of holding non-yielding assets such as gold.

The appreciation of the US dollar makes it necessary for overseas buyers to buy gold at a higher cost.

Alligator shows a death cross while the KD also shows a death cross. This indicates that the strength of the bears are relatively strong. The focus of the market would be on the inflation index as the US dollar has gone through several interest rate hikes. If there is an effect, this should be presented in the inflation index. If the inflation index begins to be suppressed, it would mean that the interest rate hike is effective. If there is no effect on the inflation index, the Fed may need to have more aggressive measures.

XAUUSD-D1

Resistance point 1: 1850.00 / Resistance point 2: 1880.00 / Resistance point 3: 1900.00

Support point 1: 1830.00 / support point 2: 1820.00 / support point 3: 1800.00

【Crude Oil】

Last week's decision by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) to boost production in July and August by 648,000 bpd failed to curb the rise in crude prices.

OPEC+ previously maintained its target of 432,000 bpd per month but it had repeatedly failed to meet the target. This time, the expansion of OPEC+ production is widely considered insufficient to compensate for the expected loss of Russian production in the coming months.

Russia has been sanctioned for invading Ukraine and an embargo on the country's energy exports has come into effect.

Alligator shows a golden cross while the KD shows a high-end figure. Crude oil buying force gradually emerged stronger. Speculation on the future price of crude oil estimates have been bullish. Investors should not enter the market against the trend for the time being.

USOIL-D1

Resistance point 1: 121.800 / Resistance point 2: 123.500 / Resistance point 3: 125.200

Support point 1: 118.500 / Support point 2: 116.200 / Support point 3: 114.800

OnePro Special Analyst

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