Not a great week for commodities and indices
26 May 2023
On Thursday, the key data in the calendar was the prelim GDP number from the US who came slightly higher than expected at 1.3% (1.1%exp). Although it was the only Tier 1 number in the calendar, it did not cause any bigger changes on the charts. A far bigger story was the opening on NVIDIA, after the company published great results and forecasts after the Wednesday session.
Indices are currently correcting a little, but they are still feeling a drop from the beginning of the week. S&P 500 stays below the 4190 resistance, but the price is at least aiming at it right now. Dow Jones is bouncing off the lower line of the triangle pattern after testing it yesterday. CAC is doing the same, but with the mid-term up-trendline. Maybe this correction won’t be very deep after all?
Friday is usually a correction of the dominant moves from the whole week. This is why the EURUSD is currently climbing slightly higher, but as long as the price stays below the 1.076, the sentiment remains negative. The whole week was negative for the AUD and NZD, but today we can see a bullish correction here, too. Does it change anything? Not really, as the sentiment for the two currencies in the mid-term remains negative.
A correction can also be seen on precious metals who were dropping sharply, especially on Wednesday and yesterday. Today, the price made a new mid-term low, which can perfectly tell you who is winning right now. Silver is also rising on Friday, but here we had 4 consecutive bearish days, so this correction is just pure take-profit action before the weekend. Big moves happened on oil yesterday, where in one day, the price managed to wipe out the whole week’s gains. The long-term sentiment on oil remains negative.