Weekly Forex Outlook: May 21-25

The week was positive for the greenback. The US dollar index managed to set new highs near $93.50. 10-year Treasury yields reached the highest level since 2011. Up to date, they are above 3%. Oil surprised with new highs amid Middle East tensions and global supply’s decrease. Brent tested levels above 80 dollars, WTI was above 72 dollars. Many emerging market currencies declined. We can say that markets were very volatile.

Let’s have a look at the economic calendar for the upcoming days. The pound needs some help in times of Brexit deal’s uncertainties. Tuesday’s inflation report hearings, CPI’s data on Wednesday, retail sales figures on Thursday and second estimate of GDP on Friday may either support it or pull it down. On Wednesday, the US Federal Reserve will release its May meeting minutes giving a deep outlook on economic and financial conditions. Similar outlook will be released by the ECB on Thursday. The week will end with the US durable goods orders on Friday.

It’s time to look at the technical side. USD/JPY is the only one pair that had a direction. It went up and broke above three important levels. Risk-on sentiment does not give many chances for the yen to recover. Above the Fibo level at 110.85, the pair will target 111.50.

EUR/USD was declining during the week. As long as it stays below 1.1850, next weekly aims are at 1.1760 and 1.17.

Other currency pairs continue to consolidate. For example, the pound cannot get out of the range between 1.3450 and 1.3550. The 200-day moving average is a strong resistance. To break it, GBP/USD needs positive economic data from the UK. Otherwise, it will break the bottom line of the consolidation range.

A strong growth of the US dollar led to the plunge of gold. It fell below 200-day MA and is now consolidating between $1,285 and $1,295. At the bottom of this range, there’s a long-term trendline support. If it fails, we’ll see a bigger selloff in gold.

Thank you for your attention! 

Similar

Gold is falling!!! | 5 Assets to Buy This Week
Gold is falling!!! | 5 Assets to Buy This Week

This week we will see two CPIs, five PMIs, and a dozen statements from banks governors from all over the world. Why do you need to follow these releases? Because it is a perfect opportunity for markets to gain volatility and for you to earn on this volatility.

Latest news

Risk On: Market Outlook for May 16-20
Risk On: Market Outlook for May 16-20

Gold is about to break the most significant support. The US dollar index keeps gaining momentum. However, the situation might change this week, and we might see a tiny correction. Investors might return to risk-on and push the US stock market indices and cryptocurrencies to the upside. These and more trade ideas are in our new weekly video! Do not miss it!

IT CAN'T BE REAL | 5 assets to trade on May 9-13
IT CAN'T BE REAL | 5 assets to trade on May 9-13

This week is likely to be pivotal for many assets, including gold, USD, and several stocks. However, we need to be focused and react fast to the ever-changing environment to get the most from it.

Deposit with your local payment systems

Be on top of your game

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera