DXY, EUR/USD And U.S. 10-Year Yield Hit 21 DMA; Could A Rally Follow?

www.investing.com/analysis/dxy-eurusd-and-us-10year-yield-hit-21-dma-could-a-rally-follow-200624537

By Ashraf Laidi | May 19, 2022 01:10AM ET

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Just as market sentiment began improving and the US dollar index showed its first 3-day losing run since March, selling resumed across the board.

Tuesday's solid US retail sales gave Powell the confidence to stick to his “inflation-remains priority” rhetoric. Interestingly, DXY, EUR/USD and US 10-year all stabilized at their 21-day moving averages.

No, this is neither a piece about “bear market rallies,” nor about “Intermarket technical confluences” covered successfully at last Thursday's market low.

This, in fact, is about how the market could resume rallying into next week—despite Wednesday's wobble.

NASDAQ-100 Daily Chart

Technically, there is a chart pattern confluence support across the NASDAQ 100, SPX and XAU/USD near 12220, 3980, and 1808/12 respectively.

As I emphasized yesterday (and today) on the importance of 1808/9 in gold, this has remained a lone sign of stability—despite earlier $30 daily swings.

The gold part is partly backed by silver holding above the $21.00 level—served as a support/resistance over the last 4 decades.

And if you think there are inflationary effects from China's disrupted supply chains, imagine the inflation from a “fully-open-back-in-demand” China. Whether this will coincide with the Fed easing off from tightening or before, yields are in for a rude awakening soon.

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Central Banks

Interest Rates

Next Meeting

FED

4.75%

Mar 22, 2023

ECB

3.00%

Mar 16, 2023

BOE

4.00%

Mar 23, 2023

SNB

1.00%

Mar 23, 2023

RBA

3.10%

Feb 07, 2023

BOC

4.50%

Mar 08, 2023

RBNZ

4.25%

Feb 22, 2023

BOJ

-0.10%

Mar 10, 2023

CBR

7.50%

Feb 10, 2023

RBI

6.25%

Feb 08, 2023

PBOC

3.65%

BCB

13.75%

Mar 22, 2023

US 30	33,849.0	-77.0	-0.23%
US 500	4,124.4	-12.1	-0.29%
Dow Jones	33,926.01	-127.93	-0.38%
S&P 500	4,136.48	-43.28	-1.04%
Nasdaq	12,006.96	-193.86	-1.59%
S&P 500 VIX	18.33	0.00	0.00%
Dollar Index	102.935	+0.180	+0.18%

Crude Oil WTI	73.67	+0.44	+0.60%
Brent Oil	80.09	+0.15	+0.19%
Natural Gas	2.428	+0.043	+1.80%
Gold	1,882.00	+1.70	+0.09%
Silver	22.420	-0.002	-0.01%
Copper	4.0430	+0.0118	+0.29%
US Soybeans	1,532.00	-1.00	-0.07%

U.S. 10Y	3.519	+-0.013	+-0.37%
U.S. 30Y	3.616	+-0.011	+-0.31%
U.S. 5Y	3.6520	+-0.0140	+-0.38%
U.S. 3M	4.6593	+0.0003	+0.01%
US 10Y T-Note	114.30	-0.12	-0.11%
Euro Bund	137.79	-1.61	-1.15%
10-2 Yield Spread	-76.93	-6.74	9.60%

Apple	154.50	+3.68	+2.44%
Alphabet A	104.78	-2.96	-2.75%
Tesla	189.98	+1.71	+0.91%
Amazon.com	103.39	-9.52	-8.43%
Netflix	365.90	-0.99	-0.27%
Meta Platforms	186.53	-2.24	-1.19%
Bank of America	36.43	+0.30	+0.83%

DXY, EUR/USD And U.S. 10-Year Yield Hit 21 DMA; Could A Rally Follow?

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