Market Analysis

GOLD

Movement remains favorable for continued gains. The MACD and RSI both indicate strong momentum supporting the uptrend. Despite a brief pause, the overall structure remains bullish, reinforcing the view that we are witnessing a gold bulls eye breakout. As technicals align with growing macroeconomic factors, we expect further upside in the sessions ahead.

Several fundamental developments contribute to the optimism surrounding gold:

• A tax bill passed by the U.S. House is projected to add between $2.3 trillion to $3.1 trillion to the deficit over the next decade.
• Concerns over rising geopolitical tensions in the Middle East, with Israel prepared to strike Iranian nuclear facilities if diplomacy fails, also add to gold’s appeal as a safe haven asset.

Given the strengthening momentum, we anticipate the potential for a substantial bullish move. Precise market entry should be sought as prices break above key levels.

SILVER

Silver has remained supported by its consolidation range and EMA200. The bullish momentum is evident, with both the MACD and RSI signaling the potential for continued upside. As gold continues to rally, silver is benefiting from spillover demand and investor interest in alternatives to the weakening U.S. dollar.

We expect silver to continue its upward movement, especially if gold breaks further. Keep an eye on key breakout levels for confirmation of continued momentum.

DXY (U.S. Dollar Index)

The U.S. Dollar is facing increased bearish momentum. While the EMA200 is near, providing some support, the overall price action suggests continued weakness. The MACD shows growing bearish volume, and RSI indicates that the Dollar may face more selling pressure in the short term.

Markets remain uncertain, but we maintain a bearish outlook for the Dollar unless a decisive shift occurs. Trading signal indicators will be crucial to identify entry points in Dollar-related pairs.

GBP/USD

The Pound is moving higher, supported by strong bullish momentum as indicated by both MACD and RSI. However, price action is nearing resistance levels, and we could see a pullback before a continuation.

We remain bullish on GBP/USD but caution traders to watch for any retracements. A confirmed breakout above key resistance will confirm further upside potential. Optimal trade timing is crucial at resistance levels.

AUD/USD

AUD/USD remains in consolidation, reflecting the broader uncertainty in the market. Although MACD and RSI are showing early signs of bullish potential, we await a more decisive breakout before entering any positions. The upcoming rate cut announcement from the Reserve Bank of Australia (RBA) could serve as a catalyst for movement in this pair.

We remain neutral for now, waiting for a clearer structural break to confirm direction.

NZD/USD

The Kiwi is showing increasing bullish momentum, supported by a positive divergence in the MACD and RSI. While price is still within its consolidation zone, a breakout above key resistance could trigger a sustained bullish move.

With expectations of a rate cut from the Reserve Bank of New Zealand (RBNZ), we are cautiously optimistic about NZD/USD, pending confirmation through a clear break.

EUR/USD

EUR/USD has shown strength and broken above key resistance, signaling potential for further upside. The MACD and RSI both support this, though the RSI is approaching overbought levels.

While we expect continued bullish movement, precise market entry should focus on pullbacks near key support or retracements for more favorable entry points.

USD/JPY

The Yen continues to strengthen against the Dollar, with both the MACD and RSI confirming bearish momentum for USD/JPY. While the price is near structural support, continued weakness in the Dollar suggests that further downside is likely.

We remain bearish on USD/JPY and will watch for opportunities to enter short positions if price breaks below key levels.

USD/CHF

The Swiss Franc is gaining strength against the Dollar, continuing its bearish trend. Both MACD and RSI support the downside momentum, and we expect further weakness in USD/CHF.

Look for short setups if price breaks below support levels. The bearish structure remains intact unless a significant reversal occurs.

USD/CAD

The Canadian Dollar continues to show strength, with the MACD and RSI both indicating strong bearish momentum for USD/CAD. Despite a recent bounce, the overall trend remains bearish.

We expect continued downside pressure and will focus on short opportunities as long as the broader trend supports it.

COT Reports Analysis

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

Final Thoughts

Gold and silver are showing strong bullish momentum, benefiting from geopolitical uncertainties and macroeconomic developments. The U.S. Dollar continues to weaken, while GBP and NZD show bullish potential, with specific caution at resistance levels.

For the best trading opportunities, focus on precise market entry for breakout confirmations and use trading signal indicators for high-conviction moves. As always, stay alert for potential volatility in Dollar-related pairs, particularly with the ongoing fiscal uncertainty and rate cut expectations. Visit: https://richsmartfx.com