Annual inflation slowed in the United States to 5% in March, while interest rates are now stable and expected to outpace inflation when the Fed meets next May. Expectations call for an additional rise in interest rates by a quarter of a percentage point, which may well be the last of this cycle. The Fed has remained vocal on its commitment to push inflation back toward target levels of 2%, even at the expense of a mild potential recession later this year.
.png "Inflation and interest rates at 5%")
On the other hand, prices in the financial markets are currently dealing with many important and accelerating variables, most notably:
- Lack of clarity in data related to the US labor market.
- The surprise production cut plan announced by the OPEC+
- Repercussions resulting from the unrest in the banking sector last month.
At this time, gold prices rose and traded close to its all-time high. Oil prices rose again and abandoned a previous downward trend, while stocks provided a positive performance during the first quarter of this year.
As investors await information on the future direction of interest rates, here are some expected support and resistance levels for some of the most traded instruments, as per analysts.
|
Brent Oil |
|
|
Expected support |
Expected resistance |
|
75.7 |
89 |
|
64.3 |
93 |
|
58.3 |
98.80 |
.png "Brent Crude Price Chart")
Brent Crude Price Chart, MT5
|
Gold |
|
|
Expected support |
Expected resistance |
|
1980 |
2050 |
|
1940 |
2070 |
|
1860 |
2100 |
.png "Gold Price Chart")
Gold Price Chart, MT5
|
EUR/USD |
|
|
Expected support |
Expected resistance |
|
1.0650 |
1.1080 |
|
1.0600 |
1.1140 |
|
1.0440 |
1.1280 |
.png "Euro vs USD dollar chart")
|
Dow Jones |
|
|
Expected support |
Expected resistance |
|
33,100 |
33,900 |
|
32,500 |
34,300 |
|
31,200 |
35,200 |
.png "US30 Price Chart")
US30 Price Chart, MT5
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