Forex Forecast: Pairs In Focus - Sunday, May 16

Last week saw the global number of confirmed new coronavirus cases fall for the second week running, suggesting that the recent wave which saw a new record daily high may have peaked globally. Total confirmed coronavirus deaths also fell.

Despite the global dip, the coronavirus situation remains very serious in India, although new cases have fallen significantly there in recent days, suggesting this wave may have peaked.

Many countries have begun vaccination programs. Excepting extremely small nations, the fastest progress towards herd immunity has taken place in Israel, the U.K. and the U.A.E. Immunization is now proceeding more quickly in the European Union than it is in the U.S. although the U.S. is ahead of the E.U. with 46% of its population having received at least one shot of a vaccine, while the E.U. has vaccinated 31% of its population.

The strongest growth in new confirmed coronavirus cases right now is happening in Afghanistan, Argentina, Bahrain, Bolivia, Colombia, Costa Rica, Cuba, Denmark, Dominican Republic, Egypt, Georgia, Greece, Japan, Malaysia, Nepal, Paraguay, Sri Lanka, Trinidad, and Vietnam.

Technical Analysis

U.S. Dollar Index

The weekly price chart below shows the U.S. Dollar Index printed a bearish candlestick last week even though it closed slightly higher than its open. The index is still below its prices from both three and six months ago which is another a bearish sign. The greenback was boosted by much higher than anticipated U.S. inflation numbers last week, although the dollar lost considerable ground on Friday as risk appetite bounced back. Overall, next week’s price movement in the U.S. dollar looks likely to be downwards. For this reason, it will probably be wise to not take any long USD trades over the coming week.

US Dollar Index Weekly Chart

S&P 500 Index

The incredible rise of the U.S. stock market since the initial impact of the coronavirus in March 2020 continues over the long term, with the price rallying strongly on Friday to recoup most of the losses from earlier in the week. However, the price is still well below recent all-time highs, so although the short-term odds are still slightly with the bulls, the advantage is only slight until the highs are broken, or until there is a deeper pullback which breaks below the 50-day moving average before turning bullish again.

View single page >> |

Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.