Market Analysis
GOLD
GOLD prices have stagnated following last week’s trading, influenced by easing US-China trade tensions. We can see demand for gold dimming, as the MACD reflects a lack of conviction to buy or sell. The RSI, however, does show slight signs of bearish momentum. Economic indicators point to potential upside, but we remain cautious until we see a clear breakout. For now, we remain overall bullish, awaiting confirmation of the next price movement. Breakout entries above key levels will offer buying opportunities as gold continues to respect the broader bullish trend.
SILVER
SILVER prices have started to lower following weakness in GOLD. The MACD shows increased bearish momentum, while the RSI continues to reflect consistent selling pressure. However, until a clear break of structure at 32.5177 is seen, we remain bullish on silver. With economic indicators still favoring silver’s upside, we expect further buying opportunities in the near term. Trade timing will be crucial in capturing the next bullish move.
DXY
The Dollar Index is currently squeezed into a tight range by the EMA200. The MACD shows bearish volume, while the RSI remains neutral-to-bullish but is flattening. We maintain a bearish bias on the USD for now, as price respects the broader bearish structure. Upcoming economic indicators such as JOLTS Job Openings, GDP data, and employment figures will likely influence the Dollar’s next move. Trade timing will be essential as the market awaits these crucial reports.
GBPUSD
The Pound remains in a consolidation phase, holding its ground at current levels. The MACD and RSI indicate bullish momentum, supporting our continuation of a bullish bias. We will not call a market shift until a clear break in either direction is seen. Major currency pairs like GBPUSD are primed for potential breakout entries, and careful monitoring of economic indicators will guide us on when to act.
AUDUSD
The Aussie Dollar remains in a consolidation phase, showing little conviction in either direction. While both the MACD and RSI show some signs of bullish potential, a clear breakout is still needed. Analysts are awaiting the outcome of upcoming U.S.-China negotiations, as well as the economic indicators around CPI and elections. Trade timing will be essential, with potential buying opportunities as the market shifts.
NZDUSD
The Kiwi has shown positive price action, with both the MACD and RSI signaling increased bullish momentum. Despite this, price remains in a consolidation phase above the EMA200. Economic indicators related to China’s manufacturing data will influence NZD movement. We expect continued buying opportunities, but caution is advised until a clear breakout is confirmed. Breakout entries above key levels may present a favorable entry.
EURUSD
The Euro remains in a consolidation zone, with the MACD and RSI showing neutral momentum. While the EMA200 supports prices, we remain cautious, as further buying could face resistance. We will continue to monitor the major currency pairs for a clearer directional move. A trade timing strategy will be key in navigating this range-bound market until a break is confirmed.
USDJPY
The Yen has shifted into a bullish structure, breaking above 141.442, turning the EMA200 into a support level. Despite this, the MACD shows low bullish volume, and the RSI remains high. Economic indicators from Japan, particularly concerning trade relations with the U.S., will influence the Yen’s trajectory. Breakout entries above key levels may present additional buying opportunities if momentum continues.
USDCHF
The Franc has maintained its bullish shift, though price action has been steady. The MACD and RSI both show increasing bullish momentum, but without clear price action signals, we remain neutral for now. The overall strength of the USD and the uncertainty of U.S.-China trade relations will influence the Franc’s next move. Trade timing will be crucial to capitalize on any potential upward momentum.
USDCAD
The CAD is in a consolidation phase, squeezed by the EMA200. We expect an explosive move once a clear breakout is seen. The economic indicators from Canada, particularly GDP data, will provide insight into the CAD’s strength. Until a clear directional bias is confirmed, we remain cautious. Breakout entries may offer a significant opportunity once the market defines its next move.
COT Reports Analysis
- AUD – WEAK (5/5)
- GBP – STRONG (5/5)
- CAD – STRONG (1/5)
- EUR – WEAK (1/5)
- JPY – STRONG (5/5)
- CHF – WEAK (2/5)
- USD – MIXED
- NZD – STRONG (1/5)
- GOLD – STRONG (2/5)
- SILVER – STRONG (3/5)
Final Thoughts
As the forex market continues to evolve, it’s crucial for traders to stay informed on key economic indicators and the performance of major currency pairs. While gold and silver maintain bullish momentum, caution is needed as consolidation and mixed signals prevail in some currency pairs. Trade timing and identifying breakout entries will be essential in navigating the market’s next moves. With crucial economic data set to release, monitoring economic indicators will help traders make informed decisions, positioning themselves for success in this dynamic and ever-changing forex landscape.
