(By ATFX Analyst Team)
Key Takeaways
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Global Market Review 26/05/2026
Yesterday, U.S. stock markets were closed, and the U.S. Dollar fell against major currencies amid light holiday trading. Gold prices rose by more than 1% amid optimistic market expectations for a peace agreement. Oil prices plunged, with WTI crude settling more than 5% lower, driven by optimism that the United States and Iran are nearing a peace deal and that the Strait of Hormuz will resume normal transit.
Key Events Today:
- 22:00 US CB Consumer Confidence MAY **
- 22:30 US Dallas Fed Manufacturing Index MAY **
May 27th
- 08:00 BoJ Gov Ueda Speech ***
- 09:30 AU CPI APR ***
- 22:00 US Richmond Fed Manufacturing Index MAY **
Markets Analysis 26/05/2026
- Resistance: 1.1655/1.1676
- Support: 1.1600/1.1584
The prospect of a potential agreement between the U.S. and Iran has indirectly benefited the Euro. Furthermore, ECB officials continue to signal market expectations for a rate hike in June. As a result, EUR/USD closed at a four-day high yesterday after opening significantly higher.
Analyst View: Although the current headlines are positive, the pair is trading at key resistance near the 10-day moving average. A breakout could pave the way for a return to the early-May highs; however, a failure to break through this resistance would keep the price locked within last week’s lower range.
Bias: Awaiting Breakout within Range
- Resistance: 1.3564/1.3605
- Support: 1.3438/1.3386
Boosted by optimism about the potential reopening of the Strait of Hormuz, GBP/USD strengthened broadly above 1.3500 on Monday, reaching its highest level since mid-month.
Analyst View: GBP/USD’s short-term signals improved yesterday after breaking above the top of last week’s range. The pair is now testing resistance at the 20-day moving average, and a decisive breakout will determine whether it can sustain its position above 1.3500.
Bias: Hovering around the 1.3500 Mark
- Resistance: 159.39/159.74
- Support: 158.62/158.28
USD/JPY edged lower yesterday as the U.S. Dollar pulled back amid progress on geopolitical issues. Meanwhile, concerns about potential FX market intervention by Japanese authorities supported the Yen. However, USD/JPY ticked slightly higher this morning, approaching 159.
Analyst View: The pair remains near a three-week high. As long as it holds above support at the 10-day moving average, bulls retain control. For now, price action remains confined to the range established since last week, awaiting news catalysts for a breakout.
Bias: Range-Bound Trading
- Resistance: 94.98/96.93
- Support: 88.66/86.74
Driven by rising optimism about the prospects for U.S.-Iran peace negotiations, crude oil prices opened sharply lower yesterday and settled more than 5% lower. During the session, prices hit their lowest level since May 6, briefly falling below $90/bbl before rebounding slightly this morning amid reports of a renewed Iranian military attack.
Analyst View: Crude oil prices are entering a “wait-and-see” phase following the heavy sell-off. Amid an optimistic atmosphere surrounding a potential peace agreement, oil prices are expected to remain under pressure. The focus is on whether the May low at $88.66 can act as support again, though sudden shifts in the headlines could trigger sharp volatility at any time.
Bias: Watch and See at Low Levels
- Resistance: 4605/4637
- Support: 4500/4468
- Resistance: 80.79/82.82
- Support: 74.72/72.17
Boosted by optimism over U.S.-Iran peace prospects, spot gold opened higher with an upward gap yesterday and closed above $4,570. However, it gave back some gains this morning as reports emerged that the two sides remain divided on key issues. Furthermore, headlines about a renewed Iranian military attack have cast a shadow over prospects for a temporary agreement to reopen the Strait of Hormuz, capping gold’s optimistic rebound.
Analyst View: Technically, gold’s peak yesterday stalled at the 10-day moving average. The failure to break through brought retracement pressure this morning. If the headlines lack further positive follow-through, focus will shift to support at the $4,500 psychological level.
Bias: Range Bound
- Resistance: 50806/50920
- Support: 50321/50209
Yesterday, U.S. stock markets were closed. Prior to that, Dow continued to set new record highs last Friday. As the market assesses progress in the U.S.-Iran peace negotiations today, the Dow is expected to continue moving toward new highs.
Analyst View: After turning back above the key psychological 51,000 level, the Dow remains well supported within its elevated range. If positive follow-through from the headlines materialises, the index is poised to return to the 50806 / 50920 area. Close attention should also be paid to today’s U.S. Consumer Confidence Index.
Bias: Trading at High Levels
- Resistance: 29886/30285
- Support: 29006/28619
Backed by the AI boom and falling U.S. Treasury yields, the Nasdaq extended its winning streak last Friday, nearing its record highs during the session. Today, the optimistic atmosphere surrounding the US-Iran situation could pave the way for a further price breakout.
Analyst View: Nasdaq is now just a stone’s throw away from its all-time high. A clear breakout above 29,680 would open higher territory, shifting the primary target to the 30,000 psychological milestone. However, this breakout still requires supportive headlines to drive momentum.
Bias: Trading at High Levels
- Resistance: 77944/78881
- Support: 76087/74912
Bitcoin edges higher amid positive market sentiment, fueled by hopes of a U.S.-Iran deal. Recent pullbacks in U.S. Treasury yields and dollar weakness have improved risk appetite.
Analyst View: Yesterday, BTC/USD recorded its third consecutive day of gains, though the upside remained modest. The price is currently hovering around the 10-day moving average. A successful breakout will be crucial to determining whether this winning streak can be extended and to breaking out of the trading range established since last week.
Bias: Range Bound
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