U.S. interest rate hikes to halt? 3 U.S. Banks Collapse in Just 5 Days【March 14, 2023】
March 14, 2023
Markets Analysis
目次
Fundamental Analysis
- Silvergate Bank, Silicon Valley Bank, and Signature Bank Fail
- Investors are watching to see whether the monetary authority’s policy of sharply raising interest rates will spread to other banks.
- Fundamentals turn sharply, funds flow out to safer assets
- President Biden attempts to calm the situation by promising full deposit protection
- Some observers believe that the March FOMC meeting will halt interest rate hikes
- Inflation or Stabilization of the Banking System: The Fed’s Response Will Be the Focal Point
- Gold surges to $1900 level as risk aversion continues
- The yen strengthens sharply, temporarily at 132 yen, as investors buy the yen as a safe-haven asset
- Market volatility continues to rise
Technical Analysis
Gold is soaring. In addition, the yen is buying more yen as risk aversion weakens the dollar. Fundamental metals are deteriorating due to the collapse of U.S. banks, and the Nikkei Stock Average is plunging. Bitcoin, a virtual currency, is surging. The dollar is weakening and has recovered to the $24,000 level.
Gold (XAUUSD)
Gold broke through USD 1,900.00 and was rising higher and higher due to risk aversion, but the RSI shows that it is sticking around 70 and the upward momentum is weakening. The possibility of a one-time adjustment cannot be ruled out. There is a possibility that the price may fall back to USD 1900.00 on profit-taking. Today’s range forecast is USD 1892.00 – USD 1931.00.
| Estimated range | USD 1,892.00 – USD 1,931.00 |
| Resistance line | USD 1,921.00 |
| Support line | USD 1,902.00 |
Nikkei Stock Index (NIKKEI225)
The Nikkei 225 trend has shifted due to a change in fundamentals. Attention has been focused on whether Japanese companies will be affected by the collapse of U.S. regional banks. The 4-hour RSI is hovering at 34 and may fall further.
| Estimated range | JPY 27,000 – JPY 27,700 |
| Resistance line | JPY 25,500 |
| Support line | JPY 22,500 |
Bitcoin (BTC/USD)
Bitcoin rallied sharply due to the weak dollar. It briefly fell below USD 20,000, but has now risen to USD 24,000. The price was at an oversold level and appears to have soared on the back of a change in fundamentals. The price to watch is around USD 25,250, which was prevented from breaking through last time.
| Estimated range | USD 23,000 – USD 25,500 |
| Resistance line | USD 24,600 |
| Support line | USD 23,500 |
Today’s Important Economic Indicators
| Economic Indicators and Events | JST (Japan Standard Time) |
| U.S. Consumer Price Index (CPI) | 21:30 |
*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.