Forex Analysis: 14 May 2024 Gold, USD & Stock Updates

by | May 14, 2024 | Forex Analysis

Gold bars to represent ForexTabs 14 May 2024 Forex Analysis.

Forex and Stock Market Update: Tuesday, May 14

Currencies:

Gold Price Technical Analysis

  • Recent Performance: Gold prices fell after failing to breach the $2,375 resistance last Friday, sliding below $2,350 as the new week began.
  • Potential Downside: Key support is around $2,280, near May’s lows and the 50-day SMA. A breach could see further declines toward $2,260.
  • Potential Upside: Resistance stands at $2,350, with the next significant level at the dynamic trendline around $2,365. If overcome, prices could rally to $2,420 and potentially $2,430.

EUR/USD Forecast – Technical Analysis

  • Recent Performance: EUR/USD moved above the 50-day and 200-day SMAs at 1.0785, showing a bullish trend.
  • Potential Upside: If the bullish trend holds, resistance between 1.0805 to 1.0810 could be tested next, with potential extension to 1.0865, marking the 50% Fibonacci retracement of the 2023 selloff.
  • Potential Downside: A retreat below the moving averages could lead to a pullback to 1.0725 and possibly 1.0695. A continued drop might reach May’s low at 1.0650.

USD/JPY Forecast – Technical Analysis

  • Recent Performance: USD/JPY has maintained its upward trend, stabilizing above 156.00.
  • Potential Upside: Resistance is anticipated at 158.00 and then at 160.00, though interventions by Japanese authorities may affect the gains.
  • Potential Downside: Support during pullbacks might be found at 154.65, with further drops potentially targeting 153.15 and the 152.50 area, near the 50-day SMA.

Stock Market:

European and US Markets

  • Market Behavior: European stocks and US futures exhibited modest fluctuations as the market braces for upcoming US inflation data.
  • Key Market Movements:
    • Europe: The Stoxx Europe 600 hovered near record highs, with noteworthy moves from Anglo American Plc and Delivery Hero SE.
    • US: S&P 500 and Nasdaq futures remained steady; Asian shares saw gains, particularly in Chinese tech stocks.

Economic Reports:

  • Bonds and Inflation: The 10-year Treasury yields stayed stable with investor focus on the upcoming US producer prices report and CPI data expected on Wednesday.

Expert Insight:

  • Oppenheimer & Co. Inc.: John Stoltzfus, Chief Strategist, anticipates that the April CPI report will draw significant market attention, potentially offering near-term investment opportunities.

Japan and Commodities:

  • Japan: The 20-year government bond yield reached its highest since 2013 amid speculation about the Bank of Japan’s policy adjustments.
  • Commodities: Oil prices held steady, while iron ore faced pressure and industrial metals like nickel and copper saw gains.

Cryptocurrencies:

  • Bitcoin: Remained stable at $62,341.
  • Ether: Increased by 1.71% to $3,000.

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