Commodities Strive for Continued Bullish Reversal; DAX Finds Support at 15,700 Points
27 June 2023
The week started on a subdued note, with speeches from central bankers from Switzerland and the European Central Bank failing to generate any major market movements. For Tuesday, the focus will shift to the Canadian and American dollars, with inflation data expected for Canada and the CB Consumer Confidence number set to be released in the US.
On the currency front, we witnessed a reversal with the Australian and New Zealand dollars now being the strongest, while the American dollar and Japanese yen remain the weakest. This strength is particularly visible in the AUDUSD, which is experiencing a bounce from the 50% Fibonacci retracement level, and the AUDJPY, which seems to be halting its bearish correction that began on June 19th.
Indices continued their southward journey from June 16th, hitting new lows, but there are some indications of a potential reversal. One key observation is on the DAX, where a bounce from the crucial horizontal support at 15700 points could signal the onset of a new bullish wave.
Lastly, commodities seem to be endeavoring to maintain their bullish reversal. Gold is struggling somewhat, but silver is endeavoring to lock in its third consecutive bullish day after hitting new mid-term lows. Oil, particularly Brent, is also climbing higher, continuing the bounce that began last week, but it is likely to face resistance from the sideways trend established in early May.