EURUSD Awaits rate decision
After last week’s high-impact news events, the euro succumbed to pressure and fell below 1.1500. With the Eurozone warning of higher inflation, officials warned of headwinds for the European economy, as this week’s triple interest rate decisions are set to shake the markets. Traders and economists alike are wondering if a recession is just around the corner, especially if the current conflict in the Middle East continues longer than expected. 1.1300 becomes the new support, with 1.1530 a fresh resistance.
XAUUSD holding on to $5K
Gold continued its indecision as price action hit the critical $5,000 support level again. The demand for gold could spike, especially if the Fed surprises markets by cutting interest rates. Jerome Powell is expected to hold for now, but the economic projections could determine gold’s direction in the short term. 5000 still looks like it will be a firm support for now, as more buyers move in to propel the price towards 5240.
SPX500 takes another downturn
The S&P500, much like most global indices, took another downturn as rising oil prices and the fears of a prolonged conflict rumble on. The index is hitting multi-month lows and pulling away from any chance of another record. Traders maintain an unfavourable outlook, as evidenced by price action after moving below the 6700 level. 6500 is the next downside target, with further fears that a deeper correction is on the horizon. 6850 is the target, higher if sentiment turns around.
