Weekly overview 23/5/2022

Weekly overview includes the movements of the major pairs with gold and oil and the areas that traders should monitor during the week with the most important economic data for this week

US Dollar Index

As was expected, a corrective decline in the US dollar index after the big rise as a result of the Fed's policies, and a rise in the major indices and currencies after they reached oversold
The level of 102.355 represents a dividing line for the dollar index, in case it loses, i.e. the closing of a four-hour and daily candle below it, we will have more decline for the dollar index, and the levels of 101 and 100 are the next destination, and while maintaining the level of 102.355, the targets are reviving at levels 104 and 105, as well as It forms a positive pattern called the descending triangle, which indicates a reversal when it is breached upwards


With the decline of the US dollar index, gold rose about 2.97% and now it is trading at the level of 1859.626, in the event that the four-hour candle closes above this level, we will witness more rise for gold, but traders should monitor the US dollar if it does not close below the 102.355 level, We will have more decline in gold and we may witness a false breakout

Crude Oil

Crude oil is still trading under geopolitical tensions between Russia and Europe and the export of Russian energy abroad at low and competitive prices. The target for crude oil is still in a positive framework and the target is at the level of 115.82, but as a result of the fluctuations that occur in the markets, the movement has become very volatile and on a large scale. And the trading range in which crude oil is located is between the level of 113.21 as a resistance line and the level of 97.11 as a support line, knowing that the graph is an ascending tunnel, which supports the positive framework as well

Euro against US Dollar

After the European Central Bank President Christine Lagarde announced that the European Central is expected to exit the negative interest rate range by the end of the third quarter by the end of the year, the euro reacted positively, of course, to breach the 1.06433 level and close above it, and we are likely to witness a rise to 1.08992 levels, with Maintain the level of 1.05351
Note: The dollar index breaching the 102.355 level and closing below it supports the positive scenario for the euro

British Pound against US Dollar

The pound sterling is also one of the currencies that has fallen recently as a result of the rise of the US dollar as a main factor in addition to the geopolitical economic conditions and inflation
The pound is now trading near an important psychological level, which is 1.26. The resistance line sloping downward, the pair will decline again to 1.23240 and 1.21958 levels

US Dollar against Canadian Dollar

More decline for this pair, especially with the weakness of the dollar index, and the first target is at the level of 1.27236, and by breaching this level downwards and closing below it on the four-hour time frame, the pair could decline to low levels such as the level of 1.26361 and 1.25

US Dollar against Japanese Yen

This pair is still trading in a general bullish trend until breaching the 126.931 level and closing below it that cancels the positive scenario and the first negative signal for this pair in about 12 weeks, and the short-term target is at 125.925 and 121.703 as a long-term target

Australian Dollar against US Dollar

The Australian dollar rose about 2.50% in the next week to complete its brilliance at the beginning of this week, and it is expected to touch the level of 0.72461, and after that it is possible to complete the general bearish trend, considering of course the movements of the US dollar index

The most important economic data for this week

Tuesday 24 May

Euro: German Services PMI

Wednesday May 25

New Zealand Dollar: Bank of New Zealand interest rate decision
US Dollar: Core Durable Goods Orders
Minutes of the Federal Open Market Committee meeting

Thursday 26 May

US Dollar: Gross Domestic Product
Unemployment Complaint Rates

Friday May 27

US Dollar: Michigan Consumer Confidence Index