Market Update - 15 May 2023

EUR/USD bears keep the reins at the lowest levels in five weeks. Clear downside break of 50-DMA, multi-day-old ascending trend line favors Euro bears. Mixed oscillators suggest limited downside room and highlight 100-DMA as the key support. Recovery remains elusive below 1.0950, rising trend line from early February appears the key upside hurdle. (FXStreet)

USD/JPY seesaws near the highest level in a week, prints three-day uptrend. Yields grind higher amid US debt ceiling and banking woes, as well as hawkish Fed talks. BOJ’s Ueda defends easy money policy, Japan PM Kishida to oder assessment on wage outlook by government and BoJ. Softer Japan PPI, unimpressive US inflation signals fail to entertain Yen pair traders. (FXStreet)

GBP/USD has moved confidently above 1.2460 as the risk-off impulse is fading away. The USD Index has sensed a loss in the upside momentum as the Fed is expected to pause its rate-hiking spell ahead. UK Prime Minister Rishi Sunak might miss his pledge of halving UK inflation by the end of CY2023. (FXStreet)

AUD/USD gains strong positive traction on Monday and snaps a two-day losing streak. A positive risk tone prompts some USD selling and provides a goodish lift to the major. The mixed fundamental backdrop warrants some caution for aggressive bullish traders. (FXStreet)

The index gives away gains following new highs near 102.80. US yields start the trading week on a positive foot. NY Empire State Index, TIC Flows, Fedspeak next on tap. The USD Index (DXY), which gauges the greenback vs. a basket of its main competitors, trades slightly on the defensive after hitting new 5-week highs around 102.75 on Monday. (FXStreet)

USD/CAD is struggling for decisive action as investors are awaiting Canada’s inflation for further guidance. Canada’s core and headline inflation are seen softening to 3.9% and 3.7% respectively. USD/CAD is marching towards the downward-sloping trendline plotted from 1.3862. (FXStreet)

USD/CHF is approaching the psychological resistance of 0.9000 amid deepening concerns over US debt-ceiling issues. If situation of default in obligated payments by the US Treasury comes across, its long-term credibility will get impacted dramatically. The restrictive monetary policy approach by the SNB is weighing effectively on inflationary pressures. (FXStreet)

EUR/GBP reverses an intraday dip to the 0.8700 mark, albeit lacks follow-through buying. The BoE’s less hawkish outlook undermines the GBP and acts as a tailwind for the cross. The mixed comments by ECB policymakers warrant caution for aggressive bullish traders. (FXStreet)

NZD/USD recovers from three-week-old horizontal support area to snap two-day downtrend. Oversold RSI (14) line favors corrective bounce but convergence of 200-SMA, 50% Fibonacci retracement guards immediate upside. Multiple hurdles toward the north, bearish MACD signals prod Kiwi pair buyers. (FXStreet)

USD/INR retreats after refreshing three-week high, prods two-day winning streak. Upbeat oscillators, sustained break of 100-DMA favors Indian Rupee bears.61.8% Fibonacci retracement, six-week-old descending resistance line restrict immediate upside. USD/INR buyers remain hopeful above 200-DMA; two-month-old previous resistance line adds to the downside filters. (FXStreet)

USD/TRY clings to mild gains after retreating from all-time high. Turkish elections fail to provide any clear results even if President Erdogan appears slightly ahead. Mixed sentiment, cautious mood ahead of May 28 runoff elections prod Turkish Lira bears. US debt ceiling updates, US Retail Sales and Fed Chair Powell’s speech eyed ahead of May 28 Presidential Vote. (FXStreet)

USD/CNH seesaws around the highest levels in nine weeks, prods four-day uptrend. US Dollar struggles to defend the biggest weekly gain since September 2022 as US policymakers appear hopeful of avoiding default. PBOC keeps one-year MLF rate unchanged at 2.75%. US debt ceiling talks, China data dump will be crucial to watch for clear directions. (FXStreet)

Prices of the barrel of the WTI dropped for the third session in a row at the end of last week. The downtick, however, was on the back of declining open interest and volume and is suggestive that further retracements appear out of table in the very near term. Occasional bullish attempts should face initial hurdle at the weekly high of $73.83 (May 10). (FXStreet)

Natural Gas cheers upside break of two-month-old resistance at a fortnight high. Convergence of 50-day EMA, 38.2% Fibonacci retracement of March-April downside appears a tough nut to crack for XNG/USD bulls. Ascending support line from May 05 adds to the downside filters for the Natural Gas price. (FXStreet)

Gold price clings to mild gains during the first positive day in three. Corrective bounce in market sentiment adds strength to recovery from $2,010 support confluence. Hopes of US debt ceiling extension, absence of major risk-negative headlines keep XAU/USD on intraday buyers’ radar. Gold buyers need to gain validation from US default updates, banking news and US Retail Sales. (FXStreet)

Silver price licks its wounds at the lowest levels in six weeks. Downbeat RSI (14) allows 50-DMA to challenge XAG/USD bears. Horizontal hurdle from early 2023, 21-DMA guard recovery moves. Silver price (XAG/USD) struggles to defend the latest corrective from a 1.5-month low near $26.00 amid early Monday morning in Europe. (FXStreet)

Source: FXStreet

Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.