1. Forex Market Insight
EUR/USD
EUR/USD dropped 1.27% at $1.0378, having touched $1.0352, its lowest since 3rd January 2017.
Markets have been attracted to safe-haven assets such as the U.S. dollar, with growing concerns about the Fed’s ability to curb inflation without causing a recession, as well as the impact of the war in Ukraine and climbing new infections in major Asian countries curbing demand.
Lingering concerns about a stagflationary environment of slow growth and high prices have also weakened investors’ risk appetite.
Technical Analysis：
(EUR/USD 1-hour chart)
We focus on the 1.0529-line today. If EUR runs steadily below the 1.0529-line, then pay attention to the support strength of the two positions of 1.0357 and 1.0264. If the strength of EUR breaks above the 1.0529-line, then pay attention to the suppression strength of the positions of 1.0662.
GBP Intraday Trend Analysis
Fundamental Analysis：
The dollar hit another near 20-year high of 104.93 on Thursday, 12th May 2022, closing at 104.75, up about 0.7%, as markets continued to worry that actions by major central banks to curb high inflation will dampen global economic growth.
This makes the dollar more safe-haven appeal.
As a result, the GDP/USD fell slightly, hitting a nearly two-year low of 1.2164 and closing at 1.2198, a drop of about 0.4%, a decline for six consecutive trading days.
Technical Analysis：
(GBP/USD 1-hour chart)
Execution Insight:
GBP is mainly focused on the 1.2301-line today. If GBP runs below the 1.2301-line, it will pay attention to the suppression strength of the two positions of 1.2106 and 1.2005. If GBP runs above the 1.2301-line, then pay attention to the support strength of the position of 1.2478.
2. Precious Metals Market Insight
Gold
Fundamental Analysis:
Gold fell on Thursday, 12th May 2022, spot gold lost 1830, falling to a new low of more than three months to $1810.07 per ounce, closing at 1821.20, down about 1.68%
Investors are betting that the Fed will stick to aggressive rate hikes, and in turn are flocking to buy dollars.
A slide in the yield on the 10-year U.S. bond limited the decline in gold prices, with the yield touching its lowest in two weeks.
Technical Analysis：
(Gold 1-hour chart)
Trading Strategies:
Gold pays attention to the 1812-line today. If the gold price runs steadily above the 1812-line, then it will pay attention to the support strength of the 1830 and 1853 positions. If the gold price breaks below the 1812-line, then pay attention to the suppression strength of the two positions of the 1804 and 1793.
3. Commodities Market Insight
WTI Crude Oil
Fundamental Analysis:
International crude oil prices edged higher on Thursday, 12th May 2022, as the International Energy Agency (IEA) highlighted the tightness in global fuel inventories.
The European Union hinted that member states may not be able to agree on Russia’s oil ban. U.S. crude settled near $106 but was volatile for most of Thursday, 13th May 2022.
If the European Union cannot convince Hungary to support a ban on Russian oil, then perhaps it is time to consider postponing the move to ban Russian oil, EU countries said.
An IEA report shows Russian supplies are critical to maintaining the global fuel balance. In its monthly oil market report, the agency said “shortages of refined products are almost universal.”
Technical Analysis：
(Crude Oil 1-hour chart)
Trading Strategies:
Oil prices focus on the 102.52-line today. If the oil price runs above the 102.52-line, then focus on the suppression strength of the two positions of 107.52 and 111.95. If the oil price runs below the 99.50-line, then pay attention to the support strength of the two positions of 99.50 and 97.33.
Disclaimer
While every effort has been made to ensure the accuracy of the information in this document, DOO Prime does not warrant or guarantee the accuracy, completeness or reliability of this information. DOO Prime does not accept responsibility for any losses or damages arising directly or indirectly, from the use of this document. The material contained in this document is provided solely for general information and educational purposes and is not and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, securities, futures, options, bonds or any other relevant financial instruments or investments. Nothing in this document should be taken as making any recommendations or providing any investment or other advice with respect to the purchase, sale or other disposition of financial instruments, any related products or any other products, securities or investments. Trading involves risk and you are advised to exercise caution in relation to the report. Before making any investment decision, prospective investors should seek advice from their own financial advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.
