COT Market Sentiment
This week’s COT positioning highlights sharp divergences between fundamentals and speculative bias. A strong forex risk management plan is essential in such volatile setups:
- AUD – WEAK (5/5)
- GBP – STRONG (5/5)
- CAD – WEAK (5/5)
- EUR – STRONG (5/5)
- JPY – STRONG (3/5)
- CHF – WEAK (4/5)
- USD – WEAK (5/5)
- NZD – STRONG (4/5)
- GOLD – STRONG (5/5)
- SILVER – STRONG (3/5)
Traders should be cautious and disciplined with forex swing entry and exit points, especially as inflation and employment reports alter price direction unexpectedly.
Market Analysis
GOLD
Gold remains stuck within its range but shows increased bearish momentum post-inflation data. MACD and RSI both favor a continuation lower. Stick to a structured forex trading approach, targeting downside breaks while being cautious of false reversals near EMA200.
SILVER
Silver reflects bearish intent after multiple rejections at resistance. MACD and RSI highlight growing sell pressure. Conservative swing entries remain favorable only after a clean break of structure, ideally utilizing a forex swing trade risk-reward calculator.
DXY
The Dollar saw erratic moves post-PPI release and Powell rumors. Technicals are mixed, with RSI suggesting potential downside continuation. The broader structure remains unstable; apply swing trading risk management and avoid chasing news-driven spikes.
GBPUSD
Despite brief Dollar weakness, GBP/USD remains in a bearish structure. MACD and RSI’s bullish signals appear temporary. Favor short setups with a focus on forex swing entry and exit points after market noise subsides.
AUDUSD
AUD/USD fell sharply after weak jobs data and rising unemployment. MACD and RSI signal continued bearish momentum. Sellers should monitor short-term pullbacks for re-entry opportunities, guided by optimal risk to reward ratio setups.
NZDUSD
NZD/USD follows through on bearish momentum, in line with expectations. MACD and RSI validate further selling potential. A clean continuation setup is likely, but prudent swing trading risk management is advised to navigate any temporary rebounds.
EURUSD
EUR/USD remains pressured despite intraday wicks suggesting demand. MACD signals minor buying volume, but RSI remains oversold. Traders should remain patient, awaiting a clear structure break before considering counter-trend opportunities.
USDJPY
USD/JPY is stabilizing near EMA200, with signs of bullish recovery potential. MACD and RSI indicate mixed signals, but price action leans toward recovery. Look for bullish continuation trades while employing tight risk management plans to protect against volatility.
USDCHF
USD/CHF shows bullish follow-through post-U.S. data releases. MACD and RSI align with continued upside. Traders can target higher levels cautiously, ensuring disciplined entry and exit strategies in light of underlying Franc strength.
USDCAD
USD/CAD remains directionless within consolidation. Until a breakout emerges, avoid unnecessary risk exposure. Watch for a structural move before engaging with defined risk to reward ratio setups.
Final Thoughts
After a week of inflation shocks and surprising jobs data, the forex landscape is primed for technical setups with sharp reversals and momentum trades. Focus on a structured forex trading approach, apply swing trading risk management, and track your consistency using a disciplined trade journal for forex. Every trade must respect risk parameters to navigate these unpredictable shifts efficiently. Visit: https://worldquestfx.com/