DXY continues to trade lower on Friday US session. USD pairs across the board weakening despite hawkish tone from the FED chair Powell clearly stated that 50 basic points basic rate hike is likely to curb high inflation.
Among the major currencies NZD gained was the winner in terms of % in the weekly gains due to RBNZ recent central bank decision of which has already raise their official cash rate from 1.50% to 2.00%. Bank governor Orr stated that rate hike is appropriate and further rate hike is very likely in the coming meeting.
While for US 10 Years treasuries yield fell to 2.74% from its high as of nearly high of 3.00% at the beginning of May22. As such US stock continues to trade higher, while DOW JONES close above 500points ++. As for Monday Asia open, such risk on environment effect likely to continue to be carried forward till before London session open at 2pm MYT.
While for US is in holiday for Memorial Day, market volatility might be low, however with such recent agenda at Europe should be investor and institution trader’s concern.
From the D1 technically perspective, DXY may continues its correction till fib level 50.0 first before further deeper correction till Fib level 61.8. 100.50 key level would be definitely a key level for institution trader to pay attention. If there is a sign of indication of price rejection from here would be a sign of reversal of USD from this key area, However, if there is a breakout of this area, USD is subjected to extended another losses for the week.
Last day of May22 is fall on Tuesday, market volatility is expected to be in big movement. While EURUSD, GBPUSD should be in watch list especially for EURUSD. While for GBPUSD an inverse head and shoulder pattern is observed. If the DXY continue to trade lower till before the next FOMC meeting at 16 June 22.
In addition, price within a falling wedge chart pattern is observed from the H4 perspective. Thus, price may move within this structure first before any real direction could be observed.
Key fundamental event for coming weeks are Bank of Canada (BOC) rate decision, if there is no surprise of BoC, the bank likely to further increase the rate 1.00% to 1.50%.
GOOD LUCK.
Article by jxjeff
Remarks from author
1)This analysis does not represent long or short trade immediately, it is solely on the author analysis
2)Trade at your own risk with proper lot sizing and follow your own trading plan
3)Risk management is always be the top priority
Among the major currencies NZD gained was the winner in terms of % in the weekly gains due to RBNZ recent central bank decision of which has already raise their official cash rate from 1.50% to 2.00%. Bank governor Orr stated that rate hike is appropriate and further rate hike is very likely in the coming meeting.
While for US 10 Years treasuries yield fell to 2.74% from its high as of nearly high of 3.00% at the beginning of May22. As such US stock continues to trade higher, while DOW JONES close above 500points ++. As for Monday Asia open, such risk on environment effect likely to continue to be carried forward till before London session open at 2pm MYT.
While for US is in holiday for Memorial Day, market volatility might be low, however with such recent agenda at Europe should be investor and institution trader’s concern.
From the D1 technically perspective, DXY may continues its correction till fib level 50.0 first before further deeper correction till Fib level 61.8. 100.50 key level would be definitely a key level for institution trader to pay attention. If there is a sign of indication of price rejection from here would be a sign of reversal of USD from this key area, However, if there is a breakout of this area, USD is subjected to extended another losses for the week.
Last day of May22 is fall on Tuesday, market volatility is expected to be in big movement. While EURUSD, GBPUSD should be in watch list especially for EURUSD. While for GBPUSD an inverse head and shoulder pattern is observed. If the DXY continue to trade lower till before the next FOMC meeting at 16 June 22.
In addition, price within a falling wedge chart pattern is observed from the H4 perspective. Thus, price may move within this structure first before any real direction could be observed.
Key fundamental event for coming weeks are Bank of Canada (BOC) rate decision, if there is no surprise of BoC, the bank likely to further increase the rate 1.00% to 1.50%.
GOOD LUCK.
Article by jxjeff
Remarks from author
1)This analysis does not represent long or short trade immediately, it is solely on the author analysis
2)Trade at your own risk with proper lot sizing and follow your own trading plan
3)Risk management is always be the top priority