Weekly Technical Forecast: Dow Holds Back from Trend Reversal, Euro and Pound Pulsating
While volatility readings are still remarkably restrained, we are seeing a host of critical markets pressuring or overtaking key technical levels. Whether the Dow’s eyeing 25,200, the Sterling on the verge of reversing its longest tumble on record or looking to leverage its biggest single-day loss of 2019, there is remarkable technical risk and opportunity in our markets.
Gold is trapped in a short-term range and price action is building for a potential breakout next week.
After a near-relentless dive from the British Pound these past three weeks, there was a break in the clouds Friday with a Sterling bounce on the same day the Prime Minister announced her resignation. Is this the first step for a reversal?
Crude prices posted an outside weekly reversal off the monthly highs and risk further losses into the May close. These are the levels that matter on the WTI weekly chart.
A sharp turn lower in the US Dollar may provide a short reprieve to the strangling of a strong US Dollar on the global economy, but the long-term trends continue to favor a stronger US Dollar Index.