There are no important economic events to end the week, however, volatility remains high across the market with participants continuously monitoring global macroeconomic developments, from the ongoing Russian war, China’s lockdown, EU’s oil embargo to the buffed-up USD and the most recent crash in Luna and Terra.

XAUUSD

XAUUSD H4 Chart. Source: TradingView

Gold is now down to its pre-war levels, trading at $1820ish after breaking through two recent support levels with ease. While gold is traditionally negatively correlated with the stocks market, they have been moving in tandem with each other for the past 2 months.

If the price continues to breach the current support, we may be looking at 1790 areas for a potential rebound.

Image: Movement of XAUUSD relatively to SP500 (March 15 - May 13)

Source: TradingView

EURUSD

EURUSD Daily Chart. Source: TradingView

Trading at a 5-year-low, the Euro is at its weakest against the US dollar. It is trading at the 1.04 key level right now, and we are just waiting on the sidelines and see if the support holds. It is a Friday, so a significant breakout might be less likely, also there are no significant economic releases to give the price a solid push.

Crude Oil

USOIL H4 Chart. Source: TradingView

Oil is trading back above its range’s midpoint, above $105 per barrel. It is pretty much range-bound right now where supply concerns caused by war and an impending embargo are offset by reduced demand from the major oil importer- China due to its lockdown. We need to see oil prices break above $105 to signal a continuation of the bull market, and a break below $94 for further downside. However, the former is more likely to happen as lockdowns related factors can be solved more easily than a limited global oil supply.

Nasdaq

Nasdaq Daily Chart. Source: TradingView

Tech-heavy Nasdaq composite index has seen a major retracement, losing almost one-fifth of its value in its most recent downswing.

It has also broken through key support at 12250, and if we see bears continue to be in control, 11000 will be our next target level. Most of this bearish momentum was most likely caused by inflationary concerns and the implementation of tight monetary policy by the Fed.

Cryptocurrencies

BTCUSD

BTCUSD Weekly Chart. Source: TradingView

We have witnessed a bloodbath across the crypto market in the past few days.

If we look at Bitcoin’s weekly chart, it lost as much as 45% of its value, although it has made some recovery. The main reason for the most recent sell-off is because Luna. one of its biggest buyers, has been forced to sell their Bitcoin holdings to support the Peg on UST, a stablecoin on the Terra blockchain. 

SOLANA

SOLANA Weekly Chart. Source: TradingView

Solana is one of the biggest losers in the recent crypto market sell-off with 64% of its value lost in the past month and a half. Our team of analysts has mapped out a potential zone to buy the dip at the $20 level. It is the price where Solana was first listed on major exchanges, and it could be a good bargain and a great chance to get your hands on some Solanas.

Welf

Trader, Technical Analyst

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