The global equities during the Asia-Pac session slumped

In Ukraine, the situation is getting worse as any hope of a resolution gets further away with no sign of either side getting what they want after the second round of talks.


Market Brief

In Ukraine, the situation is getting worse as any hope of a resolution gets further away with no sign of either side getting what they want after the second round of talks. The global equities during the Asia-Pac session slumped on news of a fire breaking out at a Ukrainian nuclear plant. Thankfully the fire was at the perimeter and no critical infrastructure was damaged but the fighting to capture the nuclear plant at Zaporizhia is another worrying development. The Nikkei 225, Hang Seng and DAX are -2.23%, -2.88% and -2.16% respectively lower. The DAX is approaching 13,000 which would be more than a 20% drop from the highs and is currently below the weekly 200 EMA.

Usually, on the first Friday of the month, the markets are slow whilst we wait for the US session and the non-farm payrolls data, and US average earnings. The EURUSD has already dropped more than 50 pips and could be heading to the 1.0900 level which is the 24th May 2020 resistance high. This is accelerating lower as flows into the US dollar increase and we move closer to the Fed's rate hike.

Gold is still trading within a tight range and the $1950 level is currently acting as a ceiling. This is also the deep retracement signified by the 78.6% Fibonacci level from the trading range that originated from the recent swing high and the low formed on 24th February. EMAs across multiple time frames are still pointing up daily and hourly, and price action typically follows the prevailing momentum

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