Economic Calendar
Monday- Australia, New Zealand, and Italy Bank Holiday
Wednesday- AUD CPI
Thursday- BOJ monetary policy report (tentative)
Investors breathe a sigh of relief as Macron beat Le Pen in the French presidential election. They were worried because Le Pen supports nationalizing key industries, cutting French’s contribution to EU budgets, and all the other policies that are not in favor of the markets.
STOXX 50 Daily Chart
EU Stock Indices are expected to open higher as the Eurozone starts its session later.
Currently, STOXX is trading below both its 50 and 200 MA and has been ranging for the past month. If it opens above 50 MA, our first target will be the 200 MA.
China’s covid situation has not been improving. In fact, Shanghai recorded the highest number of daily deaths from Covid as the city enters its fourth week of lockdown.
Elon Musk has begun talks with Twitter after many of its shareholders approached the company and urged them not to miss out on the deal with Musk. In terms of the offer price, hedge funds want Twitter to accept the offer as they are concerned about inflation and the recent plunge in technology stocks (Nasdaq - 10.2% over the past 3 weeks)
TWTR Daily Chart
Twitter is now trading at 10.87% or $5.31 below Musk’s offer price. Should the deal be successful, Twitter’s shares could rally way past $54.20, with a longer-term target at $68 area.
FOREX
USDJPY M30 Chart
USDJPY has been ranging since the 20th of April and is currently in an ascending triangle formation with its lower trendline and 200 MA acting as support. Although we are expecting a continuation to the upside with the first target at 129.13, we still mark our next support level at 127.50.
-
EURUSD Daily Chart
EURUSD is trading just below its recent swing low. There might be a retracement to the upside as the market reacts to Macron winning the presidential election and EUR gaining some strength. However, the aggressive interest rate hiking plan is going to underpin USD’s strength in the short to medium term.
Stocks
SPX Daily
The stocks market is not taking the interest rate hike plan too well with SP500 down 5.36% and Nasdaq down 5.42% in the past 2 trading sessions. SP500 we are still waiting to see if the 4300 support can prevent the price from falling further and for Nasdaq we are eyeing the 13000 key level.
USTEC Daily Chart
Energies
USOIL H2 Chart
China’s crude demand in April is estimated to have declined by 1.2 million bpd compared to the same time last year. Gasoline demand in eastern China has plummeted by roughly 40 % this month and it spells bad news as China is the top crude oil importer in the world.
Oil dropped out of its consolidation range as the market opens this morning and is trading sub $100 again. If the decline gathers momentum, we may see oil testing the $94 support level in the near term
Cryptocurrencies
Bitcoin has not moved much over the weekend, still sitting tight on the 40000 support level. No directional bias is available for now until further breakout.
Welf
Trader, Technical Analyst
