Weekly Market Commentary | 20.05 – 26.05

Curious to know what’s happening on the markets this week? Take a quick tour of the latest news, economic updates, and trading setups that will keep you up-to-date and in the know!

Monday

• The week kicks off on a quiet note, as usual, with an almost empty economic calendar. A good day to catch your breath before the action picks up.

Tuesday

• Eyes on Canadian inflation data, expected at 0.5% month-on-month. This will be the highlight, setting the tone for the Canadian dollar and potentially influencing broader market sentiment.

Wednesday

• Key event: Nvidia’s earnings report post-market close could shake up stocks and indices, so keep an eye on tech.
• Macro data: New Zealand’s interest rate decision (likely to stay at 5.5%), UK’s inflation (expected at 2.1%), and the FOMC meeting minutes from the U.S. These events will keep traders busy all day.

Thursday

• PMI day: Major economies including France, Germany, the Eurozone, the UK, and the U.S. will release their manufacturing and services PMIs. These reports are crucial indicators of economic health and can lead to significant market movements.

Friday

• Retail sales data from the UK, expected at -0.6%, could set the tone for the British pound.
• Also on the docket: Canadian retail sales figures, U.S. durable goods orders, and the revised University of Michigan Consumer Sentiment, expected at 67.7. A full day that could wrap up the week with a bang.

Setups for This Week:

USD/CHF

Primary View: 

After the false breakout, marked with an orange color, the price is in a proper upswing.

• We bounced over key horizontal support and broke key dynamic resistance marked with a black color.
• Currently, the price is challenging blue horizontal resistance. A breakout to the upside will be a proper signal to buy.

Alternative View:

• Price bouncing off the blue resistance will be a signal to go short.

GBP/CHF 

Primary View:

The price is currently challenging key horizontal resistance marked with a yellow color.

• The price climbing above this level, which is currently happening, is a proper signal to buy.
• The price action suggests a breakout above this key resistance.

Alternative View:

• Price dropping below the yellow horizontal support will be a proper signal to go short.

NZD/USD 

Primary View:

The price broke key resistances, including the black downtrend line and yellow horizontal resistance, signaling a buy.

• As long as the price stays above the yellow support, the sentiment is positive.
• The recent breakouts indicate strong bullish momentum.

Alternative View:

• A drop back below the yellow horizontal support will signal to sell.

Source: https://www.axiory.com/analytics/weekly-market-commentary/weekly-market-commentary-20-05-26-05