1. Forex Market Insight
EUR/USD
The Ukraine war and its impact on risk appetite, energy prices and inflation as well as interest rate expectations are the reasons for the short-term downside risks for EUR/USD.
Therefore, the overall trend of the euro has still been weak recently.
Technical Analysis：
(EUR/USD 1-hour chart)
Execution Insight:
We focus on the 1.0940-line today. If the euro runs steadily below the 1.0940-line, then pay attention to the support strength of the two positions of 1.0890 and 1.0832. If the strength of the euro breaks above the 1.0940-line, then pay attention to the suppression strength of the two positions of 1.0986 and 1.1055.
GBP Intraday Trend Analysis
Fundamental Analysis：
The U.S. dollar rose to a nearly two-year high on Wednesday, 6th April 2022, reaching a maximum of 99.77, the highest since May 2020, and is currently trading at 99.60.
At the same time, the market expectations were reinforced by the minutes of the last Fed meeting released earlier.
The strong rise of the dollar has caused the pound to weaken, and it has been under pressure and fluctuated downwards.
Technical Analysis：
(GBP/USD 1-hour chart)
Execution Insight:
The pound is mainly focused on the 1.3104 line today. If the pound runs below the 1.3104-line, it will pay attention to the support strength of the two positions of 1.2991 and 1.2872. If the pound runs above the 1.3104-line, it will pay attention to the suppression strength of the two positions of 1.3186 and 1.3302.
2. Precious Metals Market Insight
Gold
Fundamental Analysis:
Spot gold fluctuated yesterday, 6th April 2022, within a narrow range, and is currently trading around $1,925.
Overnight Fed minutes were largely in line with market expectations, suggesting tapering from May, putting gold prices under slight pressure.
However, the United States announced sanctions on Russian banks and Putin’s daughter. Meanwhile, Ukraine urged the West to act decisively against Russia, which still provided safe-haven support for the gold price, and the short-term gold price fluctuated.
Technical Analysis：
(Gold 1-hour chart)
Trading Strategies:
Gold is focused on the 1916-line today. If the gold price runs steadily above the 1916-line, then it will pay attention to the suppression of the 1930 and 1937 positions. If the gold price breaks below the 1916 line, it will open up further downside. At that time, we will pay attention to the support strength of the two positions of 1903 and 1896.
3. Commodities Market Insight
WTI Crude Oil
The International Energy Agency confirmed the release of 120 million barrels of oil reserves yesterday, 6th April 2022. Besides, the minutes of the Fed meeting released a hawkish signal and international oil prices fell sharply too.
WTI crude oil fell by the $100 per barrel mark. By the end of the day, WTI May crude oil futures prices fell $5.73 per barrel to close at $96.23 per barrel, a decrease of 5.62%. whereas Brent crude oil futures for June fell $5.57 per barrel to settle at $101.07 per barrel, or 5.22%.
On the domestic front, the main SC crude oil contract closed down 7.30% overnight at 624.7 yuan per barrel, leading the decline in the domestic commodity overnight market.
Technical Analysis：
(Crude oil 1-hour chart)
Trading Strategies:
The oil price is focused on the 95.05-line today. If the oil price runs above the 95.05-line, then it will pay attention to the suppression strength of the two positions of 100.65 and 104.18. If the oil price runs below the 95.05-line, it will pay attention to the support strength of 93.57 and 91.54.
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.
