Daily market analysis report 05/23/24

Finance and economics explained simply
Daily market analysis report – 05/23/24


Understanding of the daily market behavior is very paramount if you want to be profitable in the financial market. the financial market comprises of the currency market, stock market, indices, commodity market and the cryptocurrency market. Our focus will be on the currency market, we will be analyzing some currency pairs as follows:


the GBPUSD continues to rise above the 1.2700 level. again, we have to pay attention to the PMI data that will be released. in the early Asian trading hour, GBPUSD was hovering around 1.2720 and according to the FOMC Minutes, participants were concerned about the inflation rate’s slow progress toward the 2% target. April saw a 2.3% YoY increase in the UK CPI, from 3.2% in March and above the 2.1% consensus.

from our chart, we can see that GBPUSD is above the daily pivot level of 1.2726. the market at the same time is at a trendline resistance, If the market succeeds in breaking this trendline resistance may push further to the next resistance zone of 1.2753, breaking further may hit the second resistance zone of 1.2788. if it breaks the pivot level downwards may reach our first support level at 1.2691 breaking further may the second support level of 1.2664.


Wednesday saw a little decline in EURUSD as the FOMC Meeting Minutes fell short of expectations. In response to the FOMC Greenback bid, EURUSD fell. Investors are reevaluating the likelihood of a September rate cut. PMIs in the barrel for the US and EU today.

from our chart above EURUSD is currently above the daily pivot level is acting as a support level to its move upward. the market may test the trendline resistance above and dove downward for a sell but if it succeeds in breaking the trendline and the resistance level of 1.08520, may push further to the next resistance level of 1.08810. Again, if the opposite comes true and the market breaks the daily pivot downward may test the trendline support and can break further to touch the first support zone or level of 1.08050.


GBPJPY increases after UK inflation data exceeds forecast by analyst. following the release of higher- than -expected UK inflation figures, the GBPJPY exchange rate rises. When the BoE lowers interest rates, the data may not be released on time, which would help the GBP. Gains in the GBPJPY pair might have been limited as Japanese bond yields crossed above 1.0% for the first time in more than ten years.

looking at our chart it is clear that GBPJPY is in an uptrend and above the daily pivot (199.050) and it is also moving upwards on a trendline support. the market may push further to test our resistance level at 199.930. But we are also seeing a bearish divergence at the current peak. at such we are expecting GBPJPY to break the trendline support and pivot level and deep downward to test our support zone of 198.540 and then to the second support level 197.660.


Gold prices decline due to the Fed’s aggressive position. On Thursday, there is a bearish bias in the gold price. The FOMC minutes from the meeting last month, which took a hawkish posture, may have limited the rise in precious metal prices. Investor attention will be focused on Thursday’s initial reading of US PMI data for May.

currently from our chart the market is on our support zone S1(2360.00) accompanied by a bullish divergence. from this we are expecting an upward movement of the market knowing that the market is also oversold. we expect the market to buy to the trendline resistance above. may break the trendline and push further to test our resistance zone R1 (2411.00) then to resistance zone R2 (2444.00). but if it breaks the support level S1 may come to test the support level S2(2341.00).


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