A mixed inflation picture has kept global equity markets muted on Wednesday morning bringing a six-day slump to a pause with crude oil still hovering near highs.
U.S CPI data on Tuesday showed a lower-than-expected monthly number which gave some traders hope that the Fed would tighten policy more slowly than expected. But as consumer prices increase due to higher gasoline prices, a 50-basis point hike is more likely on the table. Inflation is also not letting up in Britain, as data showed this morning inflation has hit a 30 year high of 7%.
Here is what’s expected this week:
With the fundamental picture on the U.S economy still pointing towards a possible downturn, we could expect the major U.S Indices to possibly push lower. The price action on the Wall Street 30 (WS30) Index has pushed lower and rebounded from the 34110-support level as discussed in our previous WS30 note. Prices on the index have turned lower again and a break of the 34110-support level on the index could see the major support level at 33588 targeted.
The price action is trending lower on the 4H chart of the WS30 and the volume has also started to pick up from last week with the downturn. The 50-day simple moving average of price (blue line) is also pointing lower and acting as resistance to price which will be watched closely.
Current State / Chart Source: Wall Street 4H Timeframe - GT247 MT5 Trading Platform
Take note: The outlook and levels might change as this outlook is released during the current days (Wednesday the 13th of April 2022) U.S Market open.
Sources – MetaTrader5, Reuters, Simon Jessop and Alun John, Investing.com
Barry Dumas | Market Analyst at GT247.com
Barry has 12 years of experience in the financial markets. He enjoys educating clients on trading / investing and providing punchy technical analysis on securities. He currently holds a Wealth Management qualification and is studying towards becoming a Chartered Market Technician® (CMT) designation holder.
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