01.06.2021: USD about to revive (S&P500, DXY, USD/CAD, BTC/USD)

Yesterday, US trading floors were closed for the federal holiday, Memorial Day. The markets are again in motion today. US stocks traded quietly without a clear-cut trend for the whole last week. All benchmark stock indices closed on Friday with minor weekly growth of 1-1.5%. Meanwhile, oil is developing a steady rally amid growing global demand and ultra-soft monetary policy of the US Fed and other major central banks. Such background is supposed to support the US stock market.

00:00 USA indexes
00:38 S&P500
01:14 DXY
01:50 USD/CAD
02:17 Bitcoin

On Friday, three US benchmark stock indices closed with modest growth. For example, the S&P500 edged up 0.08%. Besides, it logged a muted dynamic in May. The index grew just 0.5%, though with new historic highs. The long-term outlook for the S&P500 is bullish from the technical point. Today it is trading at about 4,204 and is expected to hold in the corridor of 4,160 to 4,240 in the near time.
Currently, traders are searching for clues to the US Fed’s stance on monetary policy. On Friday, traders are anticipating crucial data on the US labor market, nonfarm payrolls for May. Meanwhile, the US dollar lacks confidence. Today, its index is trading at around 89.80. The index has got firmly stuck in a range of 89.50 to 90.30. It could be trapped in the flat market until the fundamental picture in the market and in the US economy changes.
The steady rally of oil prices is making the Canadian dollar overvalued. Today this pressure is escalating. Experts say the loonie could break below 1.1980 that will trigger a new bullish wave. Today the USD/CAD pair is trading at near 1.2060. It is likely to hold in the corridor of 1.1980 to 1.2150 in the near time.
Bitcoin is trading steadily. Technically, the number one cryptocurrency has formed the Bearish wedge in the chart after the price had reached the target level with the head and shoulder pattern. Such developments exclude a rapid rally. This week, Bitcoin is expected to trade in the same range of around 36,500 dollars.
Speaking about the outlook for Bitcoin, large investors, who entered the market in the recent year, are not poised to sell crypto assets. On the contrary, they increase their investments in the crypto market. It proves that institutional investors are optimistic about the crypto market prospects. All in all, the flagship cryptocurrency will hardly make sharp moves until the autumn. Bitcoin is unlikely to tumble below 30,000 dollars and climb above 45,000 dollars.
The US stock market is consolidating gains at the levels below record highs. US stocks find support from a robust economic recovery in the US as well as from a waning coronavirus pandemic in the US and worldwide. Monitor developments in financial markets on InstaForex TV channel!

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