05/03 Market report

【Dow Jones】

The Federal Reserve (Fed) is about to hold an interest rate meeting in May. With a sharp interest rate hike imminent, the 10-year US Treasury yield rose on Monday and hit 3% for the first time since 2018. The Dow Jones fell more than 500 points intraday during the opening as technology stocks fell sharply but clawed back to a small increase of 0.26% after that.

Alligator shows a Death Cross which indicates that the long-term Dow Jones still has selling pressure. A long lower shadow line also makes the KD indicator have a low-end divergence. The key would be on whether the price can break through the previous lows.

USA30-D1

Resistance point 1: 33500 / Resistance point 2: 33800 / Resistance point 3: 34200

Support point 1: 32800 / support point 2: 32200 / support point 3: 32000

【Japanese Yen】

Hitachi Group and Mitsubishi Group announced its 2021 earnings report on Thursday. Hitachi's revenue in the previous fiscal year (April 2021 to March 2022) reached 10 trillion yen which is an annual increase of 17%, and their net profit after tax also surged 16% to 583.4 billion yen. This is a record high. The company also announced that 335 billion of the revenue added 938.7 billion yen last year benefited from the depreciation of the yen exchange rate.

USDJPY's has been oscillating at the high end over the past few trading sessions. The current USDJPY buying is quite strong. The opening is also quite large, indicating that the long-term bullish pattern may be difficult to flip.

USDJPY-D1

Resistance point 1: 132.200 / Resistance point 2: 133.500 / Resistance point 3: 135.800

Support 1: 128.800 / Support 2: 126.500 / Support 3: 124.800

【Gold】

The Belgorod region on the Russian-Ukrainian border reported fires yesterday. Thick black smoke soared into the sky, and although Governor Gladkov declared it was just a fire, most people thought that it had to do with the Russian-Ukrainian war.

Gold continued to fall all the way down to the region of $1853 per ounce. It is not only affected by the rise in the US dollar index but there has been also some selling pressure encountered as well. Alligator shows an obvious death cross while the KD indicator shows a low-end figure.

XAUUSD-D1

Resistance point 1: 1880.00 / Resistance point 2: 1900.00 / Resistance point 3: 1920.00

Support 1: 1850.00 / Support 2: 1830.00 / Support 3: 1810.00

【Crude Oil】

Officials at the European Commission's executive board said that the crude oil embargo was in preparation and is expected to be implemented in phases. Hungary and Slovakia still remain highly dependent on Russian crude imports. However, the reluctance is shown by some in Europe. Cyprus was still mulling over Washington's request to transfer its Russian-made weapons to Ukraine. Serbian President Aleksandar Vucic discussed with Russian President Vladimir Putin on Wednesday ways to strengthen Serbia-Russia strategic partnership and energy cooperation. Hungary's Prime Minister Viktor Orban is a fierce opponent of sanctions against Moscow and has made it clear that he will not give into pressure from the EU leadership.

There is still a relatively strong buying in the support of crude oil, but from the current stage of the price trend, the swing band is getting smaller. At this stage, it is advisable not to trade against the trend so as not to suffer losses should there be a clearer breakthrough.

USOIL-D1

Resistance point 1: 107.800 / Resistance point 2: 109.500 / Resistance point 3: 110.200

Support 1: 103.500 / Support 2: 101.200 / Support 3: 98.800

OnePro Special Analyst

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