DBG Markets: Market Report for June 3, 2026

AI Optimism Overshadows Middle East Risks; Dollar Stalls at 99.00

Dollar, Euro, Pound, Gold & Crypto OutlookAI Optimism Drives Global Equities

Global equities continue their upward trajectory as recent optimism surrounding artificial intelligence (AI) technology completely overshadows ongoing uncertainties in the Middle East. Despite the fluid geopolitical landscape, the insatiable demand for AI-driven tech stocks is fueling a massive risk-on rally across global markets, keeping investor sentiment highly elevated.

US Dollar Outlook: Hovering Near the 99.00 Pivot

This surging global risk appetite is causing the US Dollar to stall. The Greenback is currently stuck, hovering dangerously near the crucial 99.00 structural level. The absolute focus for traders is to watch whether the Dollar Index can hold this line or if it will face a definitive breakout.

USD Index, H4 ChartForex Outlook: EURUSD and GBPUSD Finding Support

With the US Dollar struggling to maintain its full dominance, major currency pairs are beginning to find their footing. Both the EURUSD and GBPUSD are currently finding solid structural support. This is a highly positive technical sign for bulls. If the Dollar definitively fails to hold above the 99.00 pivot line, we could see these major Dollar pairs stage a meaningful recovery and extend their near-term bounces.

EURUSD Outlook

EURUSD, H2 Chart

After an earlier break below 1.1600, the pair regained support. This week, several attempts to push the price lower were met with a support recovery at the 1.1610 area, suggesting that Euro bulls have not entirely given up.

GBPUSD Outlook

GBPUSD, H2 Chart

The same applies to the GBPUSD. It was pushed down to 1.3400 but failed to move lower. Recent price action sees the GBPUSD once again testing its upper boundary of 1.3470. The 1.3470 – 1.3500 zone is a crucial resistance area, but if near-term price action continues to push toward the upper boundary, we could still see a bullish recovery for the pair.

Precious Metals Outlook: Gold Holds the Zone

Gold is attempting to stabilize amidst the broader risk-on environment. The precious metal is currently testing the critical $4,460 – $4,500 support zone. If bears fail to break below this structural floor, Gold is highly likely to enter a potential range-bound phase.

XAUUSD, H2 ChartCryptocurrency Outlook: Bitcoin and Ethereum Face Pressure

This week, the crypto space is facing heavy technical pressure. Bitcoin (BTC) is expected to see further downside after decisively breaking below the 70,000 psychological mark. The near-term outlook remains a broad downside swing for Bitcoin.

BTCUSD, Daily Chart

But for the broader term, traders must now closely watch the 65,000 – 63,000 support zone to see if this area can form a structural bottom.

BTCUSD, H4 Chart

At this point, bears are strong. Any rebound remains a "sell the rally" opportunity until we can see solid ground forming near 63,000 – 65,000.

Meaning to say, in the near term, continue to sell the rally; while for the positional/long-term outlook, wait to see if a bottom forms here.

ETHUSD Outlook

Meanwhile, Ethereum (ETH) has also dropped and is currently testing critical support at 1835, which marks its lowest level in 2026. Bulls must fiercely defend this level to prevent a deeper capitulation.

ETHUSD, H4 Chart

Similar to BTCUSD, in the near term, continue to sell the rally. While for the positional/long-term outlook, observe whether a bottom will form here.

Bottom Line & Asset Summary

Unrelenting AI optimism continues to drive global equities higher, effectively overshadowing lingering Middle East geopolitical uncertainties. This massive risk-on sentiment has stalled the US Dollar, leaving it hovering near the critical 99.00 level. The Dollar's hesitation is allowing major pairs like EURUSD and GBPUSD to find structural support.

Meanwhile, Gold remains supported within the $4,460 – $4,500 zone, and the crypto market faces heavy pressure with Bitcoin breaking below 70,000 and Ethereum testing its 2026 lows at 1835.

Asset Outlook Summary:

· US Dollar (DXY): Stuck near the 99.00 pivot. Traders are watching for a definitive hold or a breakout to dictate the next directional trend.

· EURUSD & GBPUSD: Finding solid technical support. Positioned for potential recoveries if the Dollar fails to hold above 99.00.

· Gold (XAUUSD): Testing the $4,460 – $4,500 support zone. If the floor holds, expect a range-bound structure to develop.

· Bitcoin (BTC): Facing downside pressure after breaking 70,000. The key focus is now on the 65,000 – 63,000 support zone for a potential bottom.

· Ethereum (ETH): Trading heavily at the 1835 support, marking the lowest level of 2026.