Between May 23 and May 27, the equity markets were running briskly, with the NASDAQ (NASDAQ: QQQ) high-tech heavy ETF and the S&P 500 (NYSE: SPY) up more than 6.50%. However, this week’s price movements are happening throughout the week, and while the J trading session is not over yet, the weekly candlesticks suggest close to last week’s opening.
Currently, significant levels of technical resistance are above their current trading levels before all major indices. Coupled with growing economic uncertainty and fears of an economic downturn, the reversal may be limited.
Cryptocurrency down again
The cryptocurrency market may close moderately but down for the week, extending its lost streak to a record high of nine direct weekly losses. There were a number of altcoins in the lock this week, Cardano (ADA) and Stellar (XLM), for example, but both destroyed 50-70% of those gains.
The total market capitalization of the cryptocurrency market sits just above the $ 1.2 trillion level, which is uncomfortably close to the $ 1 trillion critical zone.
The price of oil continues to rise
Light crude oil futures (NYMEX: CL) continue to rise and may end implicitly close to 14-year highs, levels not seen since the end of July 2008. April 11-3 June More than 20% have already been reached at Oil and is just under $ 120. level.
Weekly crude oil inventory data for June 1 showed a much larger drop of -5 million barrels from the estimate of -1.35 million. Even the recent OPEC + market for production has almost doubled to stop the rise in oil.
Wheat (CBOT: ZW) and corn (CBOT: ZC) futures markets are down this week, 10% and 6% respectively. However, these markets are likely to decline due to very prolonged oversupply conditions, leading to a technical pullback. Global concerns and uncertainties regarding food security and food shortages continue to plague this market.
The recovery of the dollar could take place
Like wheat and corn, the green backback is coming out of technical pullback after prolonged oversupply conditions. Thus, in the Ichimoku Kinko Hyo system, the US Dollar Index (TVC: DXY) is implicitly close to the higher week with a marginal gain of 0.3%.
Due to a strong technical reversal in the weekly Tenkan-Sen the DXY rally was more than + 1%, but most of those gains were lost. The DXY may fall lower to the critical level of 100 near the weekly Kijun-Sen, but the difference between the hidden chart and the composite index may prevent any lower pressure .
For cryptocurrency traders and investors, the DXY is sometimes considered an unrelated market. In other words, when DXY goes up, bitcoin (BTC) and altcoins go down.
This is not always the case, but the DXY should be considered a flight for safety. When money moves towards the dollar, it is assumed that market participants are fearful and insecure.
Due to ongoing economic uncertainty and some labor market vulnerabilities, the DXY could continue to rise steadily.
Key economic data to view next week
- June 7: Canadian Trade Balances and Ivey PMI data. Change in US API Crude Oil Inventories.
- June 9: European Union Central Bank Decision on Interest Rates. Initial claims for unemployment benefits in the United States.
- June 10: Unemployment rate in Canada. Core Inflation (MoM), Actual Inflation Rate, Core Inflation (YoY) and US Consumer Attitudes Michigan.
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