Weekly Market Analysis: 21 March 2022

　　

What happened in the market last week?

• Last week was a good week for equity markets, where the S&P 500 (+6.2%), Dow Jones Industrial Average (+5.5%), and Nasdaq Composite (+ 8.2%) all resulted positive.
• Two central banks raised their interest rates by 25 bps. The Fed signalled that they would raise interest rates 6 times more this year, which means almost every FOMC meeting this year is expected to have a rate hike.
• While the Bank of England also said that after raising interest rates by 25bps, they will not stop and will remain on track to raise interest rates another 4x this year to offset rising inflation.

What to focus on this week?

This week, there is not much news that we can expect to shake the market tremendously, but we still need to pay attention to the conditions of the meeting between Russia and Ukraine.

Some of the data to watch are inflation data from the UK, some speeches from Jerome Powell, the PMI for Manufacturing and Services from the EU, and the latest policy from the Swiss National Bank.

USD Index

This week there may not be too many trending movements in the USD index unless there is a surprise from Jerome Powell’s speeches. We can see that this week, the potential for the USD Index will move consolidative between the Support and Resistance areas.

On a weekly timeframe, the key Support area is between 97.20 – 97.68, while the key Resistance area is at 99.28 – 99.57.

Meanwhile, on a smaller timeframe on H4, the closest support is at the 97.75–97.85 area, and the closest resistance is at the 98.45–98.62 area. 

Gold

Gold fell after the market again saw the potential for peace between Russia and Ukraine, coupled with the FED’s policy of raising interest rates, causing the market to take profit-taking action on Gold as a safe haven.

If we look at the weekly timeframe, we can see that gold will consolidate again this week, with the movement between the support area 1891.00 – 1916.80 and the resistance area between 1965.00 – 1993.80.

Meanwhile, on the smaller timeframe on H4, we can see a lower but narrower area between 1886.55 – 1895.00 with resistance at 1941.10 – 1950.80.