Market Analysis

GOLD

GOLD remains poised for a bullish continuation following the expected retracement. The MACD reflects increased selling volume during the pullback, while the RSI is nearing overbought territory, suggesting the possibility of further consolidation in the short term. However, broader price action remains bullish, supported by underlying momentum and sentiment, hinting that this consolidation is likely a pause before continuation upward. Traders should watch for trade timing to capitalize on breakout entries as economic indicators continue to favor GOLD.

SILVER

SILVER prices have entered a consolidation phase, stabilizing at current levels. This indicates that the market is comfortable with a slightly higher price range for silver, and there’s subtle demand emerging to support it. Both the MACD and RSI are neutral, reflecting a lack of directional conviction. We wait for a breakout entry to confirm the next move. The close relationship between GOLD and SILVER should help guide sentiment for silver’s direction in the coming days.

DXY (US Dollar Index)

The US Dollar continues to exhibit bearish momentum. The MACD shows bullish volume divergence even as price remains muted, while the RSI frequently touches overbought levels despite price weakness—an unusual combination that suggests underlying selling pressure. Kieran Williams of InTouch Capital Markets highlights that policy confusion and declining investor confidence are leading to a gradual rotation out of dollar assets. The recent tariff backpedal may have alleviated immediate anxiety but has softened the dollar’s safe-haven appeal, increasing the likelihood of further declines. Traders should watch for trade timing to position themselves for USD weakness, particularly against major currency pairs like EURUSD and GBPUSD.

GBPUSD

The Pound saw a bullish continuation after a relatively quiet session. Prices held near recent highs, showing signs of building momentum for another upward push. The MACD and RSI confirm this, with increasing bullish volume and momentum. We continue to look for buying opportunities as the structure remains intact. A favorable economic indicator report could provide the necessary boost for a strong breakout entry on the GBPUSD pair.

AUDUSD

The Aussie Dollar maintains a firm position near highs but faces resistance at 0.63407. The market shows consistent bullish momentum, yet we maintain a conservative stance to avoid exposure to a potential pullback. Technicals remain supportive, with both the MACD and RSI confirming strong upward pressure. Traders should time their entries well, watching for a breakout to push above resistance.

NZDUSD

The Kiwi mirrors the Aussie Dollar in structure, with strong bullish volume and momentum confirmed by the MACD and RSI. While we anticipate continued upside, we remain mindful of potential market shifts and await confirmation for further entries. As with AUDUSD, this movement is tied closely to global Dollar sentiment, making trade timing crucial for breakout entries.

EURUSD

The Euro remains firm, extending gains as confirmed by increasing bullish volume and momentum on both the MACD and RSI. While a retracement could occur to test key support levels, the overall trend remains bullish. We continue to look for buying opportunities in EURUSD, as economic indicators suggest the Euro will likely continue its upward trajectory. Breakout entries will be the focus as the pair tests critical resistance zones.

USDJPY

The Yen is experiencing renewed bearish pressure, yet its strength relative to the Dollar is expected to increase over time due to a more stable economic outlook. The MACD and RSI show increased bearish momentum on USDJPY. We look for more short opportunities, but remain measured in execution as safe-haven dynamics can reverse unexpectedly based on broader market shifts.

USDCHF

The Swiss Franc remains consolidated, though indicators point toward a bearish bias. The MACD and RSI suggest increased potential for downside, but we are waiting for a clear break in price action before entering positions. Traders should keep an eye on trade timing, as breakout entries are more likely once consolidation ends.

USDCAD

The Canadian Dollar shows a continuation of bearish momentum, with both the MACD and RSI aligning to suggest more downside. While we expect further selling, we remain watchful for a potential retracement, which could offer better entries for traders. The USDCAD pair remains sensitive to economic indicators, particularly related to oil prices, which may fuel further CAD strength.

COT Report Analysis

Here’s the latest Commitment of Traders (COT) outlook, reinforcing 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)
  

Use these economic indicators to filter trades and refine trade timing. For breakout entries, consider the COT report to help anticipate market shifts.

Final Thoughts

By analyzing gold, silver, and forex market trends, traders can stay ahead of the curve. Watching key economic indicators like GDP, employment reports, and interest rates can help refine trade timing and identify breakout entries. As global events continue to affect currency movements, understanding these factors and applying them effectively can lead to more successful trading strategies.

Stay informed and ready to act on these insights as the market evolves.