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<b> MARKET</b> ANALYSIS <b> MARKET</b> ANALYSIS

MARKET ANALYSIS

Cutting-Edge Market Commentary for Informed Strategy Making

DAILY MARKET REPORT

Friday, MAY 27, 2022


 With risk flows dominating the financial markets on Thursday, Wall Street's main indexes registered impressive gains and the dollar continued to lose interest. Although the market mood seems to have turned cautious early Friday, the US Dollar Index trades at its lowest level in a month near the mid-101.00s. The US Personal Consumption Expenditures (PCE) Price Index data, the Fed's preferred gauge of inflation, will be published later in the day. The US Bureau of Economic Analysis will also release the Personal Income and Personal Spending data for April alongside the University of Michigan's Consumer Sentiment Index for May.

President Volodymyr Zelenskiy urged the West to stop playing around with Russia and impose tougher sanctions on Moscow to end its "senseless war" in Ukraine, adding his country would remain independent, the only question was at what price. Three months into its invasion of Ukraine, Russia has abandoned its assault on the capital Kyiv and is trying to consolidate control of the industrial eastern Donbas region, where it has backed a separatist revolt since 2014.

EURUSD

EUR/USD has regained its traction and continued to push higher after having closed above 1.0700 on Thursday. The pair remains on track to post gains for the second straight week and the technical outlook suggests that sellers remain on the side lines. The near-term technical outlook shows that the bullish bias remains intact for the time being. EUR/USD holds above the ascending trend line coming from mid-May and the Relative Strength Index (RSI) indicator on the four-hour chart holds comfortably above 50. On the upside, static resistance seems to have formed at 1.0760. 1.0800 (psychological level) aligns as the next hurdle.


 

XAUUSD

Gold Price once again found buyers at the critical 200-Daily Moving Average (DMA) near $1,840 on Thursday, having staged a late rebound to settle above the $1,850 psychological barrier. The safe-haven US dollar resumed its ongoing corrective downtrend as risk-on flows returned on better-than-expected earnings at the Chinese tech companies. Upbeat earnings led the Wall Street rebound, lifting gold prices in the American session. Gold Price is fast approaching strong resistance at $1,863, as the renewed upside gathers steam.


 

USDCHF

Today, the USD/CHF pair is trading in the range of Chf0.9565-0.9600 - about a monthly low. On the hourly chart, USD/CHF dropped below the moving average line MA (200) H1 (Chf0.9730) and on the four-hour chart - slightly below MA (200) H4 (Chf0.9700). Technically speaking, the support of Chf0.9565 can keep prices from further decline. The upper bound of Chf0.9765 represents the resistance level.


 

USDJPY

USD/JPY is trading on the defensive around the 127.00 level, licking its wound after the drop to 126.68 lows in Asian trading. The pair is moving in the range Y126.70 -127.20 after falling on Tuesday to a monthly low (Y126.35). On the hourly chart, the pair remains below the MA (200) H1 (Y127.80) moving average line. The situation is similar on the four-hour chart. Technically speaking, the support of Y126.35 can keep prices from further decline. The upper bound of Y127.60-80 represents the resistance level.


 

 

*The information presented above is intended for informative and educational purposes, should not be considered as investment advice, or an offer or solicitation for a transaction in any financial instrument and thus should not be treated as such. Past performance is not a reliable indicator of future results.

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