USD Gains Momentum as Global Indices Peak

By Tomasz Wisniewski|

Published: May 30 2023, 06:17 GMT+0

USD Gains Momentum as Global Indices Peak

With many traders off duty this Monday, volatility was notably low, and substantial moves were hard to come by. However, the landscape changes drastically today. Even before the European session kicks off, the USD is ascending swiftly, offering intriguing trading opportunities.

EURUSD is currently setting fresh lows in the most recent downtrend, solidifying 1.076 as a crucial local resistance. USDJPY is appreciating significantly, with the price nudging towards the monthly highs. Meanwhile, AUDUSD is retreating, confirming 0.656 as a key local resistance.

As anticipated, the strengthening USD is putting pressure on commodities. Gold is now on the decline, recording new lows for May. Oil is also trending southward, and technically, it seems like it’s inching towards the end of a wedge pattern. A wedge usually signifies a bullish correction within a larger downtrend, and it’s likely to culminate in a breakout to the downside.

Indices remained relatively stagnant yesterday, but the general trend leans towards the positive. Most key global indices are near or at their local peaks. After the resolution of the debt ceiling issue, it seems like there are no immediate concerns looming on the horizon—though unexpected complications can always surface unexpectedly.

Today’s calendar kicks off with key data from Switzerland, where we anticipate a modest 0.1% rise in Swiss GDP. The only significant data set to follow will be the CB Consumer Confidence number, released after the start of the American session. It’s expected to inch just below 100, at 99.1.

Source: https://www.axiory.com/analytics/market-news/usd-gains-momentum-as-global-indices-peak

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