Meanwhile, oil prices keep trending north, extending the bounce from local lows seen below the $100 a barrel figure last week. Brent crude is back above both the psychological level and the 20-DMA, holding above $112 ahead of the North American trading session. The latest rally in the market was due to reports that the EU governments are considering whether to impose an oil embargo on Russia over its invasion of Ukraine.
Also, Brent derives some support from expectations that China’s latest COVID-19 impact would be less severe than anticipated. And of course, oil futures stay elevated as Russia-Ukraine talks appear to yield no sign of progress. As for currencies, the dollar looks indecisive today, treading water above the $98 figure. The USD index turned positive in recent trading but still struggles to stage a more robust bounce as risk sentiment looks mixed for the time being. Also, traders express a cautious tone ahead of Powell’s speech due later today.
Meanwhile, Fed’s Bostic said he expects six rates hikes this year and another two hikes in 2023. Also, the central bank official noted that the Fed needs to get its benchmark Federal Funds interest rate to neutral as quickly as possible. He currently estimates the neutral rate to be around 2.25%. Elsewhere, the bitcoin price faced local resistance in the form of a slightly descending 100-DMA over the weekend.
This moving average, currently around $42,300, has been capping bullish attempt in the market for the third day in a row already. Today, the BTC/USD pair extended the retreat from the local barrier but managed to hold above the $40,000 figure that represents the immediate significant support zone at this stage. As long as the coin stays between the mentioned SMAs, the technical picture looks neutral in the short term.