Market Overview
This week promises significant market activity with key speeches and data releases. On Tuesday, both BoE Governor Bailey and Fed Chair Powell will deliver addresses. Wednesday will see the release of US CPI data alongside another speech by Powell. On Thursday, critical reports include New Zealand inflation, British GDP, Swiss CPI, US PPI, and unemployment claims. Finally, US retail sales data will wrap up the week on Friday.
Adding to market volatility, former US President Donald Trump announced over the weekend plans to impose a 25% tariff on all steel and aluminum imports, which would intensify his trade policies. Trump also hinted at introducing reciprocal tariffs on several countries early this week.
Geopolitical tensions remain high as Trump’s warnings to Iran have failed to deter their purchase of Russian fighter jets, indicating potential escalation. Trump reiterated his stance on preventing Iran from acquiring nuclear weapons, keeping this issue in the spotlight.
Gold
Gold prices hover near all-time highs, supported by tariff threats and geopolitical escalations. The MACD shows muted volume, while the RSI edges toward overbought territory. Despite this, the EMA200 and broader price momentum remain bullish. Traders using regulated MetaTrader platforms continue to favor gold due to its safe-haven status and potential for compounding forex profits in times of uncertainty. We maintain a bullish outlook for gold.
Silver
Silver remains consolidated within the 31.9590–32.5177 range. The EMA200 acts as strong support, but both the MACD and RSI reflect increasing bearish momentum. While prices may continue lower, consolidation is likely as the market awaits further direction from gold and the dollar. Quantitative forex models suggest that silver may continue to be influenced by gold trends and overall market sentiment.
DXY
The Dollar has rebounded on tariff-related news, rising above previous support but stopping short of testing the last swing high. Although the MACD shows increasing buying momentum and the RSI normalizes the recent gains, the dollar’s overall trend remains bearish as it fails to break key resistance levels. Forex traders using forex scalping automation strategies may find short-term opportunities in DXY volatility.
GBPUSD
The Pound continues to consolidate but holds its bullish outlook above the 1.23883 support level. The MACD reflects a lack of directional momentum, while the RSI signals exaggerated buying pressure despite muted upward movement. We remain cautiously bullish but acknowledge the potential for a bearish shift. Traders implementing hedging with multiple currencies may look to balance GBPUSD risks against dollar fluctuations.
AUDUSD
The Australian Dollar is supported by the EMA200 and a previous swing low, maintaining a bullish structure. However, resistance overhead continues to cap gains. Both the MACD and RSI signal growing bearish momentum. Clarity will depend on increased market volume, with quantitative forex models indicating that risk sentiment will play a significant role in upcoming price action.
NZDUSD
The Kiwi Dollar faces greater downward pressure than the Australian dollar, trading below key support levels, including the EMA200. Tariff news has accelerated bearish momentum, as reflected in both the MACD and RSI. This market currently favors further downside, which may impact traders aiming to achieve compounding forex profits through long-term positions.
EURUSD
The Euro continues to hold below 1.03311, with expectations of further bearish movement. However, the market remains cautious, awaiting Powell’s testimony for guidance. The RSI suggests exaggerated buying levels despite minimal price increases, while the MACD reflects muted volume, bolstering expectations of sustained bearish momentum. Traders utilizing regulated MetaTrader platforms will be closely monitoring central bank policies for directional cues.
USDJPY
The Japanese Yen is consolidating amid the tariff tensions, with the Bank of Japan anticipated to hike rates in the coming months. This contrasts with other currencies likely to experience rate cuts, lending relative strength to the Yen. The MACD and RSI maintain a bearish bias, reflecting the market’s consolidated state, with the RSI previously touching oversold levels during higher lows. Hedging with multiple currencies strategies could be beneficial in mitigating risks associated with Yen volatility.
USDCHF
The Swiss Franc is gaining bullish momentum, with prices aligning with the EMA200. The overall price action has shifted back to a bullish trend, and the current resistance level is expected to be broken. However, the ongoing consolidation phase introduces the possibility of a directional shift should Powell’s announcement alter market expectations. Both the MACD and RSI support a bullish outlook but suggest caution as markets await further developments. Forex scalping automation strategies may find short-term setups within USDCHF price action.
USDCAD
No notable changes are observed in the Canadian Dollar, as it remains steady. Like other markets, it awaits Powell’s testimony to determine the next course of action. Given the current market climate, quantitative forex models suggest that oil prices and trade policies may be key drivers of USDCAD fluctuations in the coming weeks.
Final Thoughts
This week presents key trading opportunities amid economic data releases, political developments, and central bank speeches. Traders leveraging regulated MetaTrader platforms and employing forex scalping automation or hedging with multiple currencies techniques should remain vigilant for shifts in sentiment and market trends. Monitoring quantitative forex models can further enhance trading decisions and optimize risk management for compounding forex profits over time.