1. Forex Market Insight
EUR/USD
Chicago Fed President Charles Evans indicated on Tuesday, 19th April 2022, that he thinks a round of rate hikes this year is “appropriate”, including two 50 basis point hikes and reaching a neutral level at the end of the year.
Yet, he sees no need for larger rate hikes.
He has no voting rights in the Federal Open Market Committee (FOMC) this year. Previously, some other Fed’s policymakers also pushed for pre-emptive rate hikes.
The euro recovered some of its lost ground against the dollar, rising 0.06% to $1.0786, slightly off the two-year low of $1.0756 touched last week.
Technical Analysis：
(EUR/USD 1-hour chart)
Execution Insight:
We focus on the 1.0776-line today. If the euro runs steadily above the 1.0776-line, then pay attention to the support strength of the two positions of 1.0832 and 1.0890. If the strength of the euro breaks below the 1.0776-line, then pay attention to the suppression strength of the two positions of 1.0734 and 1.0697.
GBP Intraday Trend Analysis
With only 0.1% economic growth in February, the outlook for the UK economy is particularly challenging due to the rising inflation, global uncertainty related to the war in Ukraine and headwinds from the lockdown measures adopted in Asia.
As a result, the Bank of England will withdraw from its rate hike plan after May and the UK economy looks set to contract in the second quarter.
A contraction in the economy and renewed caution from the Bank of England could weigh on the pound.
Technical Analysis：
(GBP/USD 1-hour chart)
Execution Insight:
The pound is mainly focused on the 1.2991-line today. If the pound runs above the 1.2991-line, it will pay attention to the suppression strength of the two positions of 1.3104 and 1.3186. If the pound runs below the 1.2991-line, then pay attention to the support strength of the 1.2872-line.
2. Precious Metals Market Insight
Gold
Fundamental Analysis:
The price of gold fell sharply yesterday, 19th April 2022.
Spot gold once tumbled 1.75%, hitting a low of $1,943.82 per ounce since 11th April 2022.
The strength of the US dollar and the rise in US bond yields overshadowed the inflow of safe-haven funds into gold.
Technical Analysis：
(Gold 1-hour chart)
Trading Strategies:
Gold pays attention to the 1948-line today. If the gold price runs steadily below the 1948-line, then it will pay attention to the support strength of the 1937 and 1929 positions. If the gold price breaks above the 1948-line, it will open up further upward space. At that time, pay attention to the suppression strength of the 1961-line and 1974-line.
3. Commodities Market Insight
WTI Crude Oil
Fundamental Analysis:
Oil prices tumbled about 5% in choppy trade on Tuesday, 19th April 2022, after the International Monetary Fund cut its economic growth forecast and warned of rising inflation, sparking demand concerns.
OPEC+ output was 1.45 million barrels per day below its target in March as Russia began to cut output following Western sanctions, according to a report seen by the agency.
However, oil prices still fell. According to third-party sources, Russia’s March oil production was about 300,000 barrels per day below its target of 10.018 million barrels per day, the report showed.
Technical Analysis：
(Crude oil 1-hour chart)
Trading Strategies:
Oil prices focus on the 107.52-line today. If the oil price runs above the 107.52-line, then focus on the suppression strength of the 102.52 and 99.50 positions. If the oil price runs below the 107.52-line, then pay attention to the support strength of 111.95.
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.
