COT-based Markets Weekly Overview for May 16–22

Key topics

E-Mini S&P500 (ESM22)

The market remains in the bearish trend and the correction wave develops. A pullback selling opportunity will appear after the correction completion on the Daily timeframe. Short positions will remain relevant until the market is below the nearest resistance level on the Daily timeframe, the highs of May 3–6.

Dollar Index (DXY)

The market remains in the uptrend and the correction wave develops. A pullback buying opportunity will appear after the correction completion on the Daily timeframe. Long positions will remain relevant until the market is above the nearest support level on the Daily timeframe, the lows of May 3–6.

Euro (EURUSD)

EURUSD currency pair remains in the bearish trend and the correction wave develops. A pullback selling opportunity will appear after the correction completion on the Daily timeframe. Short positions (EURUSD) will remain relevant until the market is below the nearest resistance level on the Daily timeframe, the highs of May 3–6.

Swiss Franc (USDCHF)

USDCHF currency pair remains in the uptrend and the impulse wave develops. A pullback buying opportunity will appear after the correction formation on the Daily timeframe. Long positions (USDCHF) will remain relevant until the market is above the nearest support level on the Daily timeframe, the lows of May 3–6.

British Pound (GBPUSD)

GBPUSD currency pair remains in the bearish trend and the correction wave develops. A pullback selling opportunity will appear after the correction completion on the Daily timeframe. Short positions (GBPUSD) will remain relevant until the market is below the nearest resistance level on the Daily timeframe, the highs of May 3–6.

Japanese Yen (USDJPY)

The support level was broken on the Daily timeframe on Thursday, the trend is bearish now and the correction wave develops. A pullback selling opportunity will appear after the correction completion on the Daily timeframe. Short positions (USDJPY) will remain relevant until the market is below the nearest resistance level on the Daily timeframe, the highs of May 5–11.

WTI Crude Oil (CLM22)

The support level was broken on the Daily timeframe on Tuesday, the trend is bearish now and the correction wave develops. A pullback selling opportunity will appear after the correction completion on the Daily timeframe. Short positions will remain relevant until the market is below the nearest resistance level on the Daily timeframe, the highs of May 3–9.

Canadian Dollar (USDCAD)

USDCAD currency pair remains in the uptrend. The correction came to an end last week and the pullback buying opportunity was formed. Long positions (USDCAD) will remain relevant until the market is above the nearest support level on the Daily timeframe, the lows of May 11–12.

Gold (XAUUSD)

The market remains in the bearish trend and the impulse wave develops. A pullback selling opportunity will appear after the correction formation on the Daily timeframe. Short positions will remain relevant until the market is below the nearest resistance level on the Daily timeframe, the highs of May 3–9.

Silver (XAGUSD)

The market remains in the bearish trend and the correction wave develops. A pullback selling opportunity will appear after the correction completion on the Daily timeframe. Short positions will remain relevant until the market is below the nearest resistance level on the Daily timeframe, the highs of May 3–6.

Australian Dollar (AUDUSD)

AUDUSD currency pair remains in the bearish trend and the correction wave develops. A pullback selling opportunity will appear after the correction completion on the Daily timeframe. Short positions (AUDUSD) will remain relevant until the market is below the nearest resistance level on the Daily timeframe, the highs of May 3–6.

New Zealand Dollar (NZDUSD)

NZDUSD currency pair remains in the bearish trend and the correction wave develops. A pullback selling opportunity will appear after the correction completion on the Daily timeframe. Short positions (NZDUSD) will remain relevant until the market is below the nearest resistance level on the Daily timeframe, the highs of May 3–6.

Russian Rouble (USDRUB)

USDRUB currency pair remains in the downtrend. The correction came to an end last week and the pullback selling opportunity was formed. Short positions (USDRUB) will remain relevant until the market is below the nearest resistance level on the Daily timeframe, the highs of May 6–11.

Conclusions

In terms of medium-term trading, financial instruments with the correction close to completion on the Daily timeframe and with potentially the most promising risk-reward ratio are USDRUB and AUDNZD.

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