(By ATFX Analyst Team)
Key Takeaways
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Global Market Review 01/06/2026
Driven by optimism about a potential Middle East agreement, US equities hit record highs last Friday. For the week,
the S&P 500 gained 1.43%, marking its ninth consecutive weekly win—the longest winning streak since December
2023—while the Nasdaq and the Dow Jones Industrial Average rose 2.39% and 0.9%, respectively.
US Treasury yields fell for a fourth consecutive session, and the US dollar recorded a weekly loss against major
currencies. As investors awaited updates on the extension of the Iran ceasefire, spot gold rallied 1% last Friday,
finishing the week up 0.68%. Meanwhile, crude oil prices slumped to their lowest levels since late April, with US
crude plunging more than 9% for the week, marking its sharpest weekly drop in six weeks.
Key Events Today:
- 08:30 JP Manufacturing PMI Final MAY **
09:45 CN Manufacturing PMI MAY *
- 14:00 EU GERMANY Retail Sales MoM APR **
- 15:55 EU GERMANY Manufacturing PMI Final MAY **
- 16:00 EU Manufacturing PMI Final MAY **
- 16:30 GB Manufacturing PMI Final MAY **
- 17:00 EU Unemployment Rate APR **
- 21:45 US Manufacturing PMI Final MAY ***
- 22:00 US ISM Manufacturing PMI MAY ***
June 2nd
- 17:00 EU CPI Flash MAY ***
Markets Analysis 01/06/2026
- Resistance: 1.1682 / 1.1707
- Support: 1.1626 / 1.1601
Market Update: Driven by further selling pressure on the US dollar, EUR/USD climbed to a two-week high last Friday,
approaching 1.1680, amid widespread market expectations of an imminent US-Iran agreement. Intraday focus shifts to
manufacturing PMIs from Europe and the US, as well as Eurozone unemployment data, for further direction.
Analyst View: Although EUR/USD reached a two-week high, its rally stalled just above the 20-day
moving average (MA), suggesting that bulls still lack the momentum to trigger a breakout. For now, the pair is
expected to consolidate between the 10-day and 20-day MAs, awaiting further fundamental catalysts for a decisive
breakout.
Bias: Range-bound consolidation
- Resistance: 1.3522 / 1.3564
- Support: 1.3386 / 1.3343
Market Update: Bank of England Governor Andrew Bailey said it is reasonable to tolerate inflation above the bank’s 2%
target, given lingering economic uncertainty stemming from the Iran war and fragile growth momentum. GBP/USD rose to a
three-day high last Friday, reflecting further improvements in the geopolitical landscape.
Analyst View: GBP/USD failed to extend its two-day rebound this morning. With the 20-day MA acting
as a key resistance level throughout last week, the short-term bias remains bearish as long as the pair trades below
this level. A break below the 10-day MA would threaten the 1.3400 level.
Analyst View:
Bias: Short-term bearish
- Resistance: 159.73 / 160.08
- Support: 159.06 / 158.62
Market Update: Data showed that Japanese authorities deployed a total of 11.7 trillion yen to intervene in the FX
market over the past month. Meanwhile, Japanese corporate capital expenditure stagnated in the first quarter,
compounding economic worries triggered by the Middle East conflict. USD/JPY gained at the start of the new week.
Analyst View: USD/JPY gapped higher this morning, with an opportunity to test last week’s high of
159.65. However, with intervention fears keeping markets cautious, the exchange rate is expected to remain
range-bound.
Bias: Range-bound fluctuation
- Resistance: 93.04 / 95.00
- Support: 86.74 / 84.75
Market Update: WTI crude continued its volatile downward slide last Friday, breaking below the $90 threshold amid
expectations that the Strait of Hormuz could reopen. However, oil prices bounced more than 2% in early morning trading
today after reports that Israel has ordered troops to push deeper into Lebanon amid fighting with the Iran-backed
Hezbollah militant group.
Analyst View: After booking a seven-day losing streak last Friday, oil prices are attempting a
recovery this morning. If the US-Iran ceasefire agreement fails to gain traction, it could spark a broader rebound in
oil. Reclaiming the $90 mark would help ease short-term downside pressure.
Bias: Bottoming consolidation
- Resistance: 4570/4618
- Support: 4463/4414
- Resistance: 76.69/78.72
- Support: 72.17/70.18
Spot gold rallied towards $4,600 last Friday as traders awaited either confirmation or a formal announcement of a
peace deal between Washington and Tehran. Gold prices held steady above the psychological $4,500 mark during Monday’s
Asian trading session.
Analyst View: Gold’s push towards $4,600 last Friday ultimately lost momentum after meeting
resistance at the 20-day moving average (MA), which capped the rebound. The metal is now trading at its 10-day MA, a
pivotal level for defending the $4,500 handle. For now, the near-term focus remains on range-bound consolidation
between these two key moving averages.
Bias: Range-bound consolidation
- Resistance: 51163 / 51274
- Support: 50910 / 50797
Market Update: US equities traded in a narrow band last Friday as the market awaited confirmation of the US-Iran
ceasefire agreement. Nevertheless, sustained optimism nudged the indices to new record highs, with the Dow closing
above the 51,000 milestone after reaching a fresh peak.
Analyst View: From a technical perspective, the Dow has broken out of its four-day trading range,
opening the door to further upside. If market optimism holds, the index appears poised to target the 51163 / 51274
zone, though investors should remain alert to potential volatility triggered by shifting geopolitical headlines.
Bias: Volatile tracking at highs
- Resistance: 30492 / 30620
- Support: 30105 / 29940
Market Update: The euphoria surrounding AI and tech stocks shows no signs of slowing, as the sector propelled Nasdaq
to fresh record highs last Friday. However, the index pared some intraday gains as it approached the close, signaling
a shift towards a more prudent stance as investors await formal confirmation of an extended ceasefire.
Analyst View: Nasdaq gapped higher and drifted higher last Friday, though overall gains were modest.
The index may enter a period of high-level consolidation in the short term, as it likely requires a dual catalyst of
geopolitical optimism and sustained AI momentum to fuel its next leg into record territory.
Bias: Cautious at highs
Resistance:74912/76086
- Support: 71849/70945
Bitcoin’s price hovered near $73,500 after a 3% drop in May. The market is now closely watched by investors for any
signs of a recovery that could help it hold an important level.
Analyst View: BTC/USD has remained pinned at the lower bound of its trading range since April 13,
continuing its tight consolidation. If the pair can hold last week’s low at 72,400, it may set up a technical rebound.
However, the 10-day MA near 74,900 remains a formidable near-term resistance level.
Bias: Consolidation at lows
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