Back to Risk OFF Mode on Wednesday
02 March 2022
Kiev and other major cities in the Ukraine are staying strong. Luckily, the Russian invasion is not advancing and it’s creating more frustration among Russian generals and President Vladimir Putin himself. This havoc has had the biggest influence on commodities. Oil price is going through the roof, with Brent Oil now trading around 113 USD/bbl. Does anyone remember the prices during the peak of Covid fear? Me neither.
After some rest, precious metals are also advancing higher, Gold managed to break the 1910 USD/oz resistance and is now on the way to test the 1960 USD/oz level, which stopped the rise in February.
Silver followed gold up. The price is currently testing the horizontal resistance at 25.5 USD/oz.
Indices suffered losses on Tuesday, which also sets the bearish mood at the beginning of the European session and it’s of course worse closer to the conflict. The DAX made new mid-term lows, whereas American indices are still relatively high, above crucial supports.
The dollar is flexing its muscles today. The EURUSD just made a new long-term low. With this momentum, it seems that the price should reach the lower line of a giant symmetric triangle, which we can spot on the weekly chart.
The GBPUSD also advanced lower aiming for the 38,2% Fibonacci.
Today’s calendar is packed. We already found out the GDP for Australia, which was slightly worse than expected at 3.5% instead of the expected 3.4%.
Later in calendar we will find out the ADP, so an usual Wednesdays warm up before the NFP, which will be published on Friday.
Wednesday will be also an important day for the Canadian Dollar as we have the Bank of Canada rate statement.
On top of that, we will hear a few words from Fed Chairman – Jerome Powell. One thing we know for sure, Wednesday shouldn’t be boring and we can expect some volatility.