Market Analysis
GOLD
Gold prices are showing signs of continued bullish potential, as they test key resistance levels and the EMA200. Despite a slight pullback, both the MACD and RSI are displaying increasing bullish volume, supporting the continuation of the uptrend. However, there are signals that a correction may occur, with the RSI approaching overbought territory and the MACD showing some bearish divergence.
The U.S. fiscal situation and trade concerns continue to weigh on the Dollar, supporting gold’s strength. Geopolitical risks and ongoing discussions over U.S. tax policies further bolster gold’s appeal as a safe-haven asset. We anticipate further upside in gold, contingent on a break above key resistance levels, and will continue to monitor for more buying opportunities as the price action unfolds.
SILVER
Silver remains constrained near recent highs, with bullish momentum building as the market reacts to the weaker Dollar. MACD and RSI show increased buying volume, and prices are approaching a key breakout level at 33.5028. A decisive break above this resistance would signal further bullish potential for silver. While waiting for a clear market breakout, we remain optimistic about silver’s upside movement as the broader precious metals market benefits from Dollar weakness.
DXY (U.S. Dollar Index)
The U.S. Dollar is showing underlying weakness, largely due to concerns over U.S. tax policy and fiscal health. The ongoing trade negotiations have resulted in some ambiguity, leaving the Dollar vulnerable. The MACD and RSI indicate continued bearish pressure, but the market remains cautious due to upcoming economic data releases.
The market will be closely watching this week’s economic events, including the FOMC meeting minutes and GDP data, to gauge the Fed’s stance on interest rates and the broader economic outlook. As long as the current price structure holds, we maintain a bearish outlook for the Dollar and look for selling opportunities in Dollar-related pairs.
GBP/USD
The Pound has been showing bullish strength, breaking above key resistance levels. Both MACD and RSI confirm upward momentum, signaling continued bullish potential. Despite the strength, there are multiple resistance zones ahead, and we expect some pullbacks as the price approaches these levels. However, the broader trend remains bullish as the Dollar weakens, and we look for opportunities to re-enter long positions upon breakouts or retracements.
AUD/USD
The Aussie Dollar has broken out of its consolidation range and is now testing key resistance levels. The MACD and RSI indicate growing bullish momentum, and we expect further upside movement. Australia’s upcoming CPI data could influence market sentiment, with the possibility of a rate cut priced into the market. We maintain a bullish bias for AUD/USD and will continue to monitor for breakout confirmation.
NZD/USD
The Kiwi is showing increased bullish momentum as both the MACD and RSI reflect rising buying interest. However, the pair remains technically range-bound, and we expect a potential breakout above key resistance. With an expected rate cut by the RBNZ, there may be some volatility in the short term, but we remain optimistic about NZD/USD’s upside once resistance is cleared.
EUR/USD
The Euro has broken out of its consolidation range and shows increasing bullish potential. MACD and RSI both support further upside movement, although the RSI is approaching overbought levels. We anticipate continued gains in EUR/USD, especially as the Dollar remains weak. A break above key resistance would confirm the bullish trend, and we will continue to look for buying opportunities as the Euro strengthens.
USD/JPY
The Yen is showing increased strength against the Dollar, with both MACD and RSI confirming bearish momentum for USD/JPY. Despite some initial weakness, the pair is trending lower, and we expect further selling pressure as the Yen strengthens. A break below key support levels will likely confirm continued downside for USD/JPY.
USD/CHF
The Swiss Franc is strengthening against the Dollar, showing increased bearish pressure. The MACD and RSI both indicate growing momentum for further downside. We expect continued weakness for USD/CHF and will monitor for additional selling opportunities as the bearish trend continues.
USD/CAD
The Canadian Dollar continues to strengthen as the Dollar weakens, with both MACD and RSI indicating bearish momentum. A recent pullback in USD/CAD is likely to continue as the broader market remains risk-on. We expect further downside in USD/CAD and will continue to look for opportunities to sell as the trend plays out.
COT Reports Analysis
- AUD – WEAK (5/5)
- GBP – STRONG (2/5)
- CAD – WEAK (5/5)
- EUR – STRONG (3/5)
- JPY – STRONG (4/5)
- CHF – WEAK (5/5)
- USD – MIXED
- NZD – WEAK (4/5)
- GOLD – STRONG (4/5)
- SILVER – STRONG (5/5)
Final Thoughts
Gold’s bullish movement is set to continue, supported by technical and fundamental factors that favor precious metals over the Dollar. Silver follows gold’s lead, showing strong potential for further gains. Forex pairs like GBP/USD, AUD/USD, and NZD/USD also benefit from a weaker Dollar, while USD/JPY, USD/CHF, and USD/CAD remain under pressure. Traders should focus on breakout levels and monitor key economic data for guidance on future market direction. Visit: https://worldquestfx.com/