Economic Calendar
No important announcements to end the week. French presidential election on Sunday.
Important Headlines
Shanghai lockdown is continuing to affect the global economy due to logistical and manufacturing limitations among many other factors. Flight activity to Shanghai Pudong Airport is only 3% of the previous month’s and air cargo shipments are restricted to necessary goods such as medicine. It is still unclear when the measures will be eased as cases hit record numbers for 6 consecutive days, standing at almost 20000 cases yesterday
The previous month’s FOMC Meeting minutes indicated that the Fed will consider a half-percentage-points step at upcoming meetings if inflation remains high. Therefore, we should keep an eye out for the CPI report next Tuesday. The Fed is also planning to shrink its balance sheet by 95 billion dollars a month, starting May.
Technical Analysis
XAUUSD
Gold Daily
Gold has been consolidating within a 30 dollar range for more than a week already. And traders should be wary as the likelihood for a huge breakout is very, very high. Technical levels remain the same and are marked on the chart.
OIL
Oil H4
Oil has been making lower highs and lower lows and is in a short-term bearish market structure. It is currently down 8.5% from its weekly high and approaching $94 support. If it fails to hold, we have another support at $89.5.
Fundamentals-wise, planned stockpile release from consuming countries is keeping prices low. However, it is not a long-term solution and is deterring oil producers from increasing output as quickly, although oil price is near triple digits.
EURUSD
EURUSD Weekly
EURUSD drifted lower and is down 1.77% for the week. It is heading towards key support at 1.0850. Is the Euro strong enough to bounce away from support? The bearish outlook remains intact as the market structure is showing lower highs and lower lows since May last year.
USDJPY
USDJPY Daily
USDJPY is set to advance higher after finishing its consolidation on the bullish trendline. The next resistance is the key level at 125 which is only 100 pips away. Will UJ hit the level before CPI next Tuesday?
US stocks markets
Investors have to continuously monitor developments of the war, China’s covid situation, and global inflation amongst many other headwinds that is taking place around the world right now.
SP500
SPX Daily
SP500 has been lingering around the 4500 level for the past 2 days with not much directional movement.
USTEC
Nasdaq Daily
USTEC made a brief bounce from 14480 support during yesterday's trading, also no significant movement has been observed.
BTCUSD
BTCUSD Daily
As discussed in our previous analysis, Bitcoin was indeed making a fakeout to the upside and is now trading back below the 45000 level. Bearish momentum looks strong as Bitcoin lost 6.3% this week. The next level to look out for is $40000 which somehow acts as a midpoint for bulls and bears.
Welf
Trader, Technical Analyst
