Market Analysis
GOLD
GOLD prices continue to rise with strong bullish momentum. The MACD confirms the ongoing bullish trend with increasing volume, while the RSI suggests that we may see a brief pullback before continuing higher. Given that central bank purchases of gold remain high and geopolitical tensions persist, the bullish outlook for GOLD is intact. Traders can use forex swing trading strategies to capitalize on the ongoing upward movement, with the target still set at $3,800/oz by year-end.
SILVER
SILVER has shown some gains but remains relatively muted compared to GOLD. The MACD shows increased bullish volume, but the RSI remains neutral, indicating no clear directional move yet. As GOLD continues to lead, SILVER is likely to catch up in due time. Traders should monitor the correlation between GOLD and SILVER closely, as SILVER often follows GOLD’s lead, offering opportunities once the lag in price action resolves.
DXY
The U.S. Dollar continues to face downward pressure, with both the MACD and RSI indicating bearish momentum. Despite some positive readings, the ongoing trade uncertainties and inflation risks are weighing on the Dollar. As a result, we anticipate further Dollar weakness in the medium term. This creates opportunities for forex swing trading strategies to benefit from the volatility in cross-currency pairs, particularly in pairs like EUR/USD, which will likely experience increased price movement.
GBPUSD
The Pound has shown a resurgence of bullish movement, with both the MACD and RSI reflecting strengthening bullish volume and momentum. As the Dollar weakens, the GBP/USD pair continues to see upward pressure. We expect the bullish trend to continue, and traders should focus on position trading in forex for longer-term gains as the structural trend remains intact.
AUDUSD
The Aussie Dollar remains bullish, confirmed by increasing MACD and RSI momentum. However, resistance at the EMA200 could present a short-term pullback before any continuation higher. Traders should be cautious and look for confirmation of further upward movement before entering new positions. The overall trend remains bullish, and we maintain a positive outlook.
NZDUSD
The Kiwi mirrors the Aussie Dollar in performance, with increasing MACD and RSI bullish momentum. While short-term pullbacks may occur, the overall upward trend remains intact. This movement is largely driven by global Dollar sentiment, making it an ideal opportunity for traders to apply forex swing trading strategies based on momentum.
EURUSD
The Euro is showing strength, with MACD and RSI confirming bullish movement. However, the RSI has approached overbought levels, and a potential retracement to test support could occur. Despite this, the broader bullish trend remains intact. Traders should remain vigilant and look for buying opportunities once the market tests key support levels.
USDJPY
The Yen continues to experience bearish pressure, but its relative strength compared to the Dollar is expected to rise over time. Both the MACD and RSI show increased bearish momentum, indicating a potential for further downside. Traders should continue to look for short opportunities until a more definitive breakout occurs.
USDCHF
The Swiss Franc continues to show strength against the Dollar. While the trend remains bearish, the MACD and RSI indicate potential short-term retracements. Traders should remain cautious, looking for pullbacks as opportunities to re-enter bearish positions.
USDCAD
The Canadian Dollar is currently showing bullish momentum, but the broader trend remains bearish. The MACD and RSI confirm increased momentum, but we continue to favor selling opportunities unless price structure breaks convincingly above the EMA200. The forex pair analysis suggests that the bearish trend will likely persist, despite short-term bullish fluctuations.
COT Reports Analysis
Here’s the latest Commitment of Traders (COT) outlook, reinforcing the directional bias:
- AUD – WEAK (3/5)
- GBP – WEAK (5/5)
- CAD – WEAK (4/5)
- EUR – STRONG (5/5)
- JPY – STRONG (5/5)
- CHF – WEAK (3/5)
- USD – STRONG (4/5)
- NZD – WEAK (4/5)
- GOLD – STRONG (4/5)
- SILVER – STRONG (4/5)
This analysis reinforces the expectation of continued Dollar weakness, along with the strength of currencies like EUR, JPY, and GOLD.
Final Thoughts
The ongoing trade tensions and volatility in cross-currency pairs present significant opportunities for forex traders. By utilizing forex swing trading strategies, traders can capture medium- to long-term trends in pairs such as EUR/USD, GBP/USD, and USD/JPY. Focus on technical indicators like MACD and RSI to navigate these markets effectively while managing risk.
Stay informed and be ready to adjust positions as the global economic landscape continues to evolve.