Gold Breaks Key Support, Dollar Surges on Trade Optimism

Market Analysis

GOLD

Gold has broken decisively below the 3260.22 support level, confirming a shift in momentum to the downside. The MACD is showing strong selling volume, and the RSI—after previously indicating overbought conditions—has now reversed, creating space for deeper selling pressure. This move marks a significant change in the gold trend structure, and the bearish tone is now well-established.

On the fundamental side, safe-haven demand has sharply weakened following the U.S. and China’s joint announcement to reduce tariffs. The U.S. slashed duties on Chinese goods from 145% to 30%, while China responded by lowering its own tariffs from 125% to 10%. These developments reflect easing trade tensions, which in turn reduce demand for gold. Traders aiming for forex trade execution speed should be alert for sharp volatility as sentiment continues to shift.

SILVER

Silver remains range-bound with no decisive direction. Although volatility is low and demand has normalized, the broader structure suggests further consolidation. MACD shows no clear momentum, and RSI remains neutral.

Until a breakout or strong catalyst emerges, we maintain a neutral stance. Trading signal indicators offer little directional advantage in current conditions.

DXY (U.S. Dollar Index)

The U.S. Dollar hit a recent high of 101.786 and is likely to continue higher as bullish momentum builds. MACD reflects increasing volume, and RSI supports continued strength without showing signs of exhaustion.

Trade deal optimism and the Fed’s steady policy outlook further support USD upside. This is an ideal scenario for precise market entry, especially for long USD trades.

GBP/USD

GBP/USD is reversing after a short-lived bounce. The MACD and RSI now show rising bearish momentum, confirming a downside shift. The strength of the Dollar is overwhelming Pound resilience.

We expect more selling pressure and recommend short positions upon retracement. Speed and timing are key, and forex trade execution speed should be leveraged to secure optimal entries.

AUD/USD

The Australian Dollar is under continued pressure, with technical indicators pointing to more losses. MACD shows increasing bearish volume, and RSI remains in a downward trend.

With commodity currencies struggling against USD strength, we maintain a bearish outlook. Optimal trade timing focuses on resistance rejections or continuation breakdowns.

NZD/USD

Despite typical tailwinds from China’s improving outlook, NZD/USD is failing to rally. Dollar strength is the dominant driver. MACD and RSI both confirm a strong bearish trend.

This pair favors short positioning, especially on minor rallies. Trading signal indicators support staying in favor of the trend.

EUR/USD

The Euro has broken lower after filling a technical gap. The MACD confirms strong selling volume, while RSI has reset, allowing for continued bearish movement.

We continue to favor downside trades in this pair, using structure-based levels for entry. Forex entry strategy should focus on sell-the-rally setups.

USD/JPY

USD/JPY is gaining as sentiment improves across Asia. Weakness in the Yen is now well-established, supported by positive risk sentiment and fading safe-haven appeal.

Both MACD and RSI suggest more upside, favoring long setups on dips. Precise market entry during retracements will be key to maximizing upside in this bullish move.

USD/CHF

USD/CHF is rallying on the back of reduced global uncertainty. MACD and RSI both confirm a bullish shift, and we expect continued upside.

This pair aligns well with the broader theme of Dollar strength and fading demand for the Franc. Entries on pullbacks are ideal.

USD/CAD

USD/CAD is breaking higher, driven by broad CAD weakness and persistent USD strength. MACD and RSI both reflect strong bullish momentum and volume.

We expect this breakout to continue. Traders should use forex trade execution speed to capture continuation moves before price accelerates further.

COT Reports Analysis

  • AUD – WEAK (4/5)
  • GBP – STRONG (5/5)
  • CAD – WEAK (5/5)
  • EUR – STRONG (4/5)
  • JPY – STRONG (5/5)
  • CHF – WEAK (3/5)
  • USD – MIXED
  • NZD – WEAK (3/5)
  • GOLD – STRONG (3/5)
  • SILVER – STRONG (5/5)

Final Thoughts

Gold’s break below 3260.22 confirms a bearish trend shift, with silver lagging behind in a tight range. Meanwhile, the U.S. Dollar continues to dominate the forex landscape, supported by trade deal optimism and favorable macro conditions.

This environment demands fast reactions and sharp execution. Utilize forex trade execution speed to take advantage of rapid shifts. Focus on trend-following strategies, use trading signal indicators for confirmation, and aim for precise market entry points aligned with the current momentum.

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