As mentioned previously, it’s crucial not to chase trends, even with the stronger dollar on the horizon. The dollar found some weakness as Trump’s recent decision loosened the markets. On Monday, President Trump suspended tariffs on Mexico and Canada for 30 days, pending border and crime enforcement concessions. However, tariffs on Chinese goods are set to begin soon, and markets perceive Trump’s tariff policies as inflationary.
Gold: Riding the Volatility
Gold prices continue their upward trend, supported by ongoing tariff concerns. With historic highs reached, further buying is expected despite the persistent strength of the dollar. Quantitative forex models suggest that gold’s rally may continue as inflationary fears intensify. The MACD and RSI both reflect increased volatility, signaling higher price action for gold in the coming days.
Silver: Bullish Outlook
Silver prices are holding steady, tracking closely with gold. Once gold becomes overpriced, silver is likely to follow, making it a prime asset for those seeking a safe haven. Both the MACD and RSI show increasing momentum, aligning with the bullish outlook. Traders may consider regulated MetaTrader platforms for secure and precise trading during this volatile phase.
DXY and Dollar Strength
The DXY index filled its gap and is expected to continue rising. The EMA200 supports the price, but market uncertainty remains due to the fluctuating nature of tariffs. For those leveraging forex scalping automation, there are significant opportunities for short-term profits. The dollar’s strength, alongside volatility, makes this a prime time for algorithmic traders to adjust strategies.
Forex Pairs: Opportunities for Traders
GBPUSD
The pound continues to face bearish pressure, though the MACD indicates buying momentum. This offers a window for forex scalping automation strategies as prices may dip before rallying.
AUDUSD
The Aussie dollar remains bearish, but the MACD and RSI reflect growing momentum, suggesting a potential market reversal. Traders using compounding forex profits strategies might find value in these shifts.
NZDUSD
Kiwi prices remain under pressure due to both weak market conditions and the threat of further rate cuts. The RSI aligns with a bearish bias, making this a potential setup for hedging with multiple currencies to reduce risk.
EURUSD
The Euro has filled its gap but faces continued selling pressure. Hedging with multiple currencies can help mitigate risks in this uncertain environment, as buying momentum continues to shift away from the Euro.
USDJPY
The yen is stable but under pressure due to market expectations for the BOJ to hike rates. The MACD and RSI fail to show a clear trend, indicating market consolidation. Compounding forex profits can be applied here to optimize long-term positions.
USDCHF
The Swiss Franc remains bullish with increasing buying momentum. Regulated MetaTrader platforms offer secure ways to trade this currency pair as it continues to rise.
USDCAD
The CAD is expected to weaken further, with the dollar continuing to push higher. The RSI shows increased buying momentum, supporting the outlook for a rising USDCAD. Investors may consider quantitative forex models to track this shift.
COT REPORT ANALYSIS
- AUD – WEAK (5/5)
- GBP – WEAK (4/5)
- CAD – WEAK (4/5)
- EUR – WEAK (4/5)
- JPY – WEAK (1/5)
- CHF – WEAK (5/5)
- USD – STRONG (4/5)
- NZD – WEAK (4/5)
- GOLD – STRONG (5/5)
- SILVER – STRONG (4/5)