05/05 Market report

【Dow Jones】

The U.S. Federal Reserve today announced a 2-yard rate hike which is the first in 22 years, and will shrink its balance sheet by $9 trillion to suppress the inflation at a 40-year high.

The U.S. Consumer Price Index (CPI) rose 8.5 percent year-over-year in March which is the highest since December 1981. Jerome Powell told the people of the United States at the beginning of a press conference after the meeting: “The inflation rate is really too high, we understand that this is causing hardship to the people, and we are acting quickly to pull down inflation.”

USA30-D1

Resistance point 1: 34500 / Resistance point 2: 34800 / Resistance point 3: 35500

Support point 1: 33500 / support point 2: 33000 / support point 3: 32500

【EUR】

After two days of rallies, Federal Reserve Council officials decided to raise the target range for the federal funds rate to 0.75% to 1%, in line with market expectations.

This is the first 0.5 percentage point increase since May 2000, and the first time since June 2006 that two regular sessions have resolved to raise interest rates and suppress high inflation.

After the US officially announced the interest rate hike, the USD began to fall from the high-end. For EURUSD, yesterday's rally formed a short-term W bottom. KD also shows an obvious golden cross, showing that there is buying strength on the short line. Alligator is still a death crossover and indicates that it has not broken out of range yet.

EURUSD-D1

Resistance point 1: 1.06500 / Resistance point 2: 1.06800 / Resistance point 3: 1.07200

Support point 1: 1.05800 / support point 2: 1.05500 / support point 3: 1.05200

【Gold】

SPDR Gold Shares (GLD), the world's largest gold-backed ETF, held 1,089.04t of gold on the 4th May.

According to data released by the U.S. Mint, sales of U.S. Eagle Yang coins were 88,000 ounces in April which is a new monthly low this year. It is down 43 percent from 155,500 ounces the previous month, but up 128.5 percent from 38,500 ounces in the same period last year.

Analysts pointed out that the decline in gold and silver coin sales in April was mainly due to investors' expectations of the US Federal Reserve's monetary policy tightening.

From the perspective of gold, the US dollar index fell and gold began to rise. The overall international situation of gold has not changed much and the movement has only moved up according to the decline of the USD. There is some selling pressure near the resistance at $1910 per ounce. The key thing to note would be whether Gold will break through above this level.

XAUUSD-D1

Resistance point 1: 1910.00 / Resistance point 2: 1930.00 / Resistance point 3: 1950.00

Support point 1: 1880.00 / support point 2: 1850.00 / support point 3: 1830.00

【Crude Oil】

The European Union on Wednesday unveiled its toughest sanctions against Russia to date, including a phased oil embargo. If all 27 EU governments agree, it would echo the measures already taken by the United States and Britain. Some countries in the EU are still dependent on Russian energy and must find alternative supplies.

The price of crude oil has begun to be strengthened by a declining USD but the price pattern of crude oil is still in a stage of consolidation and convergence. The current price is near the $110 resistance and waiting to break upwards. Alligator and KD are golden crosses. This indicates that the strength of buying is strong and that the chance of a breakthrough is relatively high.

USOIL-D1

Resistance point 1: 110.800 / Resistance point 2: 113.500 / Resistance point 3: 115.200

Support point 1: 107.500 / support point 2: 105.200 / support point 3: 103.800

OnePro Special Analyst

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