26 May 2023 Afternoon Session Analysis
Euro slumped as Germany entered recession.
The Euro, which acts as the single currency of the European Union, teetered near the brink of collapse as the strongest economy in the EU entered the stage of recession. According to the Federal Statistical Office of Germany, the German GDP posted a reading at -0.3%, lower than the consensus forecast of -0.1%, mirroring that the German economy has been in the negative territory of growth for the 2nd consecutive quarter. Comparing Germany with other highly developed countries, the German economy was losing its potential for growth which prompted investors to move away their investments from the country. In detail, the main contribution causing negative growth in the recent month came from the significant drop in government spending and household consumption, about -4.9% and -1.2% on QoQ basis respectively. In fact, sky-high inflation was the main factor pressuring consumer spending in recent months, as the high price of goods and services reduce the spending power of the consumer. As of writing, the pair of EUR/USD edged up by 0.06% to 1.0735.
In the commodities market, crude oil prices edged down -0.21% to $71.65 per barrel as the prospect of no further oil cut plan weighed on the black commodity price. Besides, gold prices edged up by 0.26% to $1946.10 per troy ounce after hitting the lowest level in 2 months’ time.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | GBP – Retail Sales (MoM) (Apr) | -0.9% | 0.4% | – |
| 20:30 | USD – Core Durable Goods Orders (MoM) (Apr) | 0.3% | 0.0% | – |
| 20:30 | USD – Core PCE Price Index (MoM) (Apr) | 0.3% | 0.3% | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher following the prior breakout above the previous resistance level at 103.00. MACD which illustrated bullish bias momentum suggests the index to extend its gains toward the resistance level at 105.00.
Resistance level: 105.00, 106.65
Support level: 103.00, 100.65
GBPUSD, Daily: GBPUSD was traded lower while currently testing the support level at 1.2300. MACD which illustrated bearish bias momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.2405, 1.2525
Support level: 1.2300, 1.2200
EURUSD, Daily: EURUSD was traded lower following the prior breakout below the previous support level at 1.0770. MACD which illustrated bearish bias momentum suggest the pair to extend its losses toward the support level at 1.0665.
Resistance level: 1.0770, 1.0915
Support level: 1.0665, 1.0575
USDJPY, Daily: USDJPY was traded higher following the prior breakout above the previous resistance level at 138.95. MACD which illustrated bullish bias momentum suggest the pair to extend its gains toward the resistance level at 141.60.
Resistance level: 141.60, 144.85
Support level: 138.95, 137.60
AUDUSD, Daily: AUDUSD was traded lower following the prior breakout below the previous support level at 0.6565. MACD which illustrated bearish bias momentum suggest the pair to extend its losses toward the support level at 0.6425.
Resistance level: 0.6565, 0.6675
Support level: 0.6425, 0.6285
NZDUSD, Daily: NZDUSD was traded lower while currently testing the support level at 0.6040. MACD which illustrated bearish bias momentum suggest the pair to extend its losses after it successfully breakout below the support level at 0.6040.
Resistance level: 0.6150, 0.6290
Support level: 0.6040, 0.5925
USDCAD, Daily: USDCAD was traded higher while currently testing the resistance level at 1.3635. MACD which illustrated bullish bias momentum suggests the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.3635, 1.3730
Support level: 1.3565, 1.3485
USDCHF, Daily: USDCHF was traded higher while currently testing the resistance level at 0.9075. MACD which illustrated bullish bias momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.9075, 0.9160
Support level: 0.9000, 0.8865
CrudeOIL, Daily: Crude oil price was traded lower while currently testing the upward trend line. MACD which illustrated diminishing bullish momentum suggest the commodity to extend its losses after it successfully breakout below the upward trend line.
Resistance level: 73.90, 77.15
Support level: 70.15, 66.50
GOLD_, Daily: Gold price was traded higher while currently testing the resistance level at 1951.60. MACD which illustrated diminishing bearish momentum suggests the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1951.60, 1980.00
Support level: 1889.55, 1839.40