GOLD
Core inflation last week turned up as expected, reinforcing the Federal Reserve’s stance to hold on rates. As the week progressed, gold prices rebounded, reaching previous support levels and almost testing the lower high. Despite the MACD gaining volume, the RSI has signaled overbought conditions, suggesting that statistical forex analysis indicates short-term selling pressure.
From a data-driven trading strategy perspective, gold remains a long-term bullish asset as traders hedge against risks associated with a strengthening dollar. Algorithmic market predictions suggest economic strains, particularly from tariffs on Canada, Mexico, and China, could fuel further upside potential. However, short-term quantitative risk assessment models indicate possible downside movement before the next breakout.
SILVER
Silver prices continue to extend selling momentum, testing 31.4724 and signaling further bearish potential. The RSI, previously overbought, has turned downward, reinforcing the bearish sentiment. While the MACD recently crossed up, the broader market sentiment and machine learning forex models suggest an imminent reversal, favoring a continued downtrend.
With these indicators aligned, quantitative risk assessment tools predict increased volatility in the coming sessions. The sell-side pressure remains dominant, with traders using statistical forex analysis to pinpoint optimal shorting opportunities.
DXY (US Dollar Index)
The U.S. dollar maintains strong buying momentum despite a weak Monday open, marked by a significant price gap. The MACD reflects increased selling pressure, and the RSI follows suit. However, algorithmic market predictions continue to favor a bullish outlook, expecting the price to test the EMA200 at 106.848 before any significant reversal.
While some traders expect the price to retrace and fill the gap, data-driven trading strategies suggest more confirmation is needed. As the dollar’s strength persists, it influences major forex pairs, leading to further adjustments in trading models.
GBPUSD
The British Pound is showing increasing signs of weakness. A confirmed break below 1.25740 is likely to drive further selling momentum. Resistance at the EMA200 and 1.26163 remains firm, capping price gains.
Despite strong volume in the MACD, the actual price movement remains sluggish, signaling weakness. RSI overbought conditions reinforce selling pressure, and quantitative forex models confirm a downward bias. The inability of GBP to capitalize on recent USD weakness suggests fragility, supporting further short opportunities.
AUDUSD
The Australian dollar is losing ground, with increasing selling momentum after last week’s attempt at recovery. The MACD shows strong buying volume, but price action remains weak, pointing to an imminent sell-off.
The RSI aggressively signals overbought conditions, reinforcing expectations of deeper declines. Statistical forex analysis aligns with algorithmic market predictions, suggesting that the AUD will remain under pressure as the market seeks more stability in risk-off assets.
NZDUSD
The New Zealand dollar continues its downward trajectory, breaking through key support levels. The RSI and MACD mirror patterns seen in GBP and AUD, indicating persistent selling momentum.
Using machine learning forex models, traders anticipate further downside, as fundamental weaknesses in NZD persist. Data-driven trading strategies suggest targeting lower support levels for strategic short positions.
EURUSD
The Euro saw a sharp decline last week, with Monday’s open hinting at a potential reversal. However, statistical forex analysis suggests that short-term gains might be temporary, with a higher probability of further selling.
Despite the MACD showing increased buying volume, the RSI remains in overbought territory, reinforcing downside risks. Market positioning and quantitative risk assessment indicate that EURUSD remains a sell on rallies until a strong reversal structure forms.
USDJPY
The Japanese Yen remains in a consolidation phase, bouncing off 150.883 while showing increased selling momentum. The MACD and RSI remain neutral, offering no clear directional bias.
Price action has breached the EMA200, but without confirmation of a sustained breakout. Algorithmic market predictions suggest that if USDJPY successfully surpasses 150.883, a complete trend shift to the upside will be confirmed. Until then, continued consolidation is expected.
USDCHF
The Swiss Franc remains weak, with the USD exhibiting stable upward momentum. The MACD has been consolidating, while the RSI signals oversold conditions, suggesting increased buying interest in USDCHF.
From a data-driven trading strategy perspective, the Franc’s recent weakness aligns with broader trends favoring the dollar. As buyers step in, quantitative forex models suggest further gains in this pair.
USDCAD
The Canadian dollar continues to struggle, especially as U.S. tariffs on Canada and Mexico are set to take effect. Market participants await confirmation of these policies, but expectations remain in favor of a stronger U.S. dollar.
The RSI is already signaling increasing buying pressure, aligning with statistical forex analysis indicating continued USD dominance. Traders looking for entries should monitor upcoming economic reports and policy announcements for further confirmation.
COT Reports Analysis
- AUD – WEAK (2/5)
- GBP – STRONG (5/5)
- CAD – WEAK (3/5)
- EUR – WEAK (2/5)
- JPY – STRONG (5/5)
- CHF – WEAK (4/5)
- USD – STRONG (4/5)
- NZD – WEAK (5/5)
- GOLD – STRONG (4/5)
- SILVER – STRONG (4/5)
Final Thoughts
This week’s market analysis highlights shifting trends in gold, silver, and major forex pairs, driven by quantitative risk assessment and algorithmic market predictions. Traders using machine learning forex models continue to refine their strategies to capitalize on volatility. As data-driven trading strategies evolve, keeping an eye on macroeconomic developments will be key in navigating the current forex landscape.