U.S. Dollar Could See More Weakness As Stocks Stabilize
2022.05.30 12:31
The US markets are closed today due to Memorial day, so we expect thin trading conditions and slow price action. Trading should return to normal tomorrow when risk-on may resume following a sharp bounce last week and a positive close on Friday.
It was a nice bullish close which can produce more upside this week as China is ready to go back to normal as “unreasonable” curbs on businesses will be removed from Jun. 1 as it looks to lift its COVID-19 lockdown, while Beijing reopened parts of its public transport as well as some malls and other venues as infections stabilized.
This is positive for global markets, gold, and also for Aussie. The USD can see more weakness going forward. From an Elliott wave perspective, we see five waves down on DXY so more USD weakness can be seen, but ideally, after a corrective rally back to 102.45-103.25 area.
DXY 2-hour chart.
