24/7 SUPPORT
Download App
Published: 22 May 2026,06:43
Daily Market Analysis New
*US dollar trades sideways as markets await clearer macro direction
*Slight pullback in oil prices eases near-term inflation concerns
*Strong U.S. economic data continues supporting long-term USD outlook
*Gold remains pressured by stronger dollar and yield expectations
The US dollar index, which tracks the greenback against a basket of six major currencies, remained relatively flat and consolidated within a narrow range as market participants continued struggling to establish a clear direction for the broader U.S. economic outlook.
With negotiations between the United States and Iran still ongoing and lacking a definitive breakthrough, oil prices have also remained volatile and directionless. The recent slight pullback in crude oil prices helped ease some near-term inflation concerns, leading U.S. Treasury yields and the dollar to edge slightly lower. However, markets largely viewed the move as a technical correction rather than a major shift in macroeconomic fundamentals.
Despite the recent pause in momentum, the broader long-term outlook for the US dollar remains relatively constructive. Expectations continue to build that the Federal Reserve may maintain a higher interest rate environment moving forward, particularly after another series of resilient U.S. economic data releases.
Recent reports showed that U.S. Manufacturing PMI rose to 55.3 in May, slightly exceeding expectations and reinforcing confidence in the strength of the U.S. economy. In addition, stronger-than-expected inflation reports, including CPI and PPI data, together with solid retail sales figures, have continued to strengthen market optimism surrounding economic activity in the United States.
The combination of resilient growth and persistent inflation pressures has continued supporting the view that the Federal Reserve may keep policy relatively restrictive for longer, helping underpin the dollar over the longer term.
Gold prices, meanwhile, remained largely range-bound and consolidated near the lower end of recent trading ranges as the stronger dollar and elevated yield environment continued to weigh on the appeal of non-yielding assets.
Looking ahead, developments surrounding U.S.–Iran negotiations are expected to remain a major market catalyst. Any positive or negative developments over the weekend could significantly influence oil prices, inflation expectations, Treasury yields, and overall safe-haven demand for gold.
Technical Analysis
DOLLAR_INDX, H4:
The dollar index is currently consolidating within a range between 99.50 resistance and 99.15 support, with markets closely watching for a breakout to determine the next directional move.
Momentum indicators are beginning to weaken, with the MACD turning more bearish and the RSI at 55 pulling back sharply from overbought territory, suggesting downside risks may increase if support breaks.
A confirmed breakdown below 99.15 could extend losses toward the next support at 98.80.
However, if the index holds above support, prices may rebound toward the 99.50 resistance level, with further upside toward 99.95 if momentum recovers.
Resistance level: 99.50, 99.95
Support level: 9.15, 98.80
GOLD, H4:
Gold prices are trading lower, currently testing the 4,515.00 support level, which acts as a key near-term floor.
Momentum remains bearish, with the MACD strengthening to the downside and forming a bearish crossover, while the RSI at 49 is also trending lower, indicating persistent downside pressure.
If bearish momentum continues, gold could extend losses toward the next support at 4,440.00.
However, if selling pressure begins to ease, prices may rebound toward the 4,580.00 resistance level, followed by 4,665.00 if recovery strengthens.
Resistance Levels: 4580.00, 4665.00
Support Levels: 4515.00, 4440.00
Trade forex, indices, metal, and more at industry-low spreads and lightning-fast execution.
Sign up for a PU Prime Live Account with our hassle-free process.
Effortlessly fund your account with a wide range of channels and accepted currencies.
Access hundreds of instruments under market-leading trading conditions.
Trading Platforms
Learn
About PU Prime
Corporate
Please note the Website is intended for individuals residing in jurisdictions where accessing the Website is permitted by law.
Please note that PU Prime and its affiliated entities are neither established nor operating in your home jurisdiction.
By clicking the "Acknowledge" button, you confirm that you are entering this website solely based on your initiative and not as a result of any specific marketing outreach. You wish to obtain information from this website which is provided on reverse solicitation in accordance with the laws of your home jurisdiction.
Thank You for Your Acknowledgement!
Ten en cuenta que el sitio web está destinado a personas que residen en jurisdicciones donde el acceso al sitio web está permitido por la ley.
Ten en cuenta que PU Prime y sus entidades afiliadas no están establecidas ni operan en tu jurisdicción de origen.
Al hacer clic en el botón "Aceptar", confirmas que estás ingresando a este sitio web por tu propia iniciativa y no como resultado de ningún esfuerzo de marketing específico. Deseas obtener información de este sitio web que se proporciona mediante solicitud inversa de acuerdo con las leyes de tu jurisdicción de origen.
Thank You for Your Acknowledgement!
