Indices Soaring, Forex Signals Bearish Reversals, and Precious Metals Sliding: Market Update
22 May 2023
Last week was truly amazing for stocks and the USD, and the big question this week will be whether this rise and optimism will be sustainable or not. In many cases, instruments broke key resistances and supports, which can give us a hint that those moves will continue, perhaps after a small correction initially. In general, the long and mid-term sentiment has been set.
On some indices, the situation is awesome. The S&P 500, DAX, and Nasdaq are living the time of their lives. The Dow Jones and CAC are in a slightly worse condition but are getting there for sure.
In the Forex market, the Yen is currently in a very interesting place. GBPJPY is testing the 172 resistance for the second time this year. It looks like a great place to initiate a bearish reversal. AUDJPY is currently testing two resistances: a horizontal one at 92.3 and the dynamic one being the upper line of the flag formation. Additionally, on Friday, the price also created a shooting star candlestick, which can actually be a bearish trigger.
In the commodities market, we started this week on the back foot with declines in precious metals and oil. The decline in precious metals continues the new bearish trend that started two weeks ago, while the decline in oil is just a normal slide within the short-term sideways trend. In both cases, the long-term view is rather negative.
Today's calendar is empty, and for more significant updates, we will have to wait until tomorrow when major economies will publish their PMI numbers.