23.05.22 Macro Morning
Chris Becker | May 23, 2022 08:55
While there was a sea of green across Australian politics on Saturday, Friday night saw Wall Street put in a deep intrasession loss that was then barely filled at the end of the night. This continued high volatility is also translating into a much firmer bond market with the 10 year US Treasury yield again pulling back to the 2.7% level, with interest rate markets still continuing to price in nearly 2% of rate rises to come from the Fed by the end of the year with a 50 bps rise predicted for next month. Meanwhile the USD regained strength against the undollars with the Dollar Index up nearly 0.5%, mainly on the fall in Euro while the Australian dollar just finished above the 70 handle. Commodity prices swung a little higher with WTI and Brent crude up by nearly 1% while gold finished almost finish at the $1850USD per ounce level .
Bitcoin is still going nowhere, finishing the week in meek fashion just below the $30K level as price remains well contained at the recent near 50% loss lows. After cracking through the $25K level in the previous week, momentum remains heavily negative, if not oversold and price action has not yet recovered as trailing ATR resistance remains way overhead for now. Essentially turn the chart upside down and you’d be buying on any breakout/breakdown at the $29K level:
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