May 29, 20221 min read

[Week 22 - 2022] Trades Recap and Trade Setups

Updated: Jan 20, 2023

Hey Traders,

Stock rebounded throughout the week with the Dollar continued its weakness. The release of the PCE inflation data also supported the risk on environment as the it reported a declined from 5.2% to 4.9% in April while the headline came in at 6.3% vs 6.6%, indicating a decline in inflation.

Next week's unemployment report will also be the key highlight as companies has indicated a slow down in growth and potentially reducing headcount. If we were to see any signs of increase in unemployment, we could potentially see a reversal in stock indices.

Upcoming Economic Release:

Weekly Economic Calendar for Week 22 — Credit: ForexFactory.com Time: +8 GMT

Dollar Index (DXY)

The Dollar continue to weaken, breaking below the 102.35 region. To maintain the bullish outlook of the dollar, it would need to break above the 102.35 region else it may fall towards the 100.0 region.

Spot Gold (XAU/USD)

Gold attempts to trade above resistance level

Despite the weaker Dollar, Gold struggled to increase in value, trading around the 1850 region. A break of the 1832 support region can potentially fuel more downside move.

Trade Recap

AUD/NZD (Analysis 19-1)