Good morning everybody, I hope you had an ideal weekend. As you understand, I’ve been away with my household for a couple of days, spending a while on the seaside because of the holidays in Europe, however as at all times I saved an eye fixed on the markets.
We noticed a pleasant transfer increased on shares final week, supported by robust earnings, particularly from massive tech names like Meta, , and , all beating on income and EPS. For now, there aren’t any clear recession alerts, which is maintaining sentiment optimistic, with US futures buying and selling at new highs.
On the similar time, the greenback turned barely decrease final week. Tensions within the Center East across the Strait of Hormuz are nonetheless current, however eased a bit after OPEC introduced an output enhance of 188000 barrels per day for June. This transfer goals to stabilize vitality markets and restrict additional inflation pressures.
Wanting on the , the important thing technical level is that the restoration from the April 17 lows unfolded in three waves, adopted by a pointy drop under the corrective channel help round 98.15. This means we may see additional draw back after the present A-B-C rebound, which is probably going solely short-term.
Being Monday, the bounce might be reversed later as you understand, so we’d anticipate resistance to indicate up across the 38.2% to 61.8% retracement zone, roughly within the 98.10 to 98.25 space. From there, one other leg decrease may comply with, with a retest of the April lows close to 97.31.
If this situation performs out, then stronger currencies, particularly commodity currencies, may proceed to outperform as soon as the present bounce on the greenback completes.
