Market Analysis
GOLD
Gold prices remain consolidated throughout the day, showing insignificant movements. It may be positioning itself for gains after the U.S. payrolls report is released. Before that, there is a possibility for prices to test a lower level before pushing higher. A retest of the previous higher swing low could provide a premium buying opportunity before a continuation upward. The USD trading dynamics will be clearer once the payroll data is published.
The MACD is currently crossed upward, signaling potential for more buying. The RSI is consolidating without reaching extreme levels, while the EMA200 continues to act as strong support at the lower boundary of consolidation.
With current market conditions and forex volatility and spreads influenced by economic uncertainty, we anticipate more buying momentum for gold in the coming days.
SILVER
Silver prices remain consolidated at high levels, appreciating before gold had a chance to follow. This suggests that the markets are anticipating where gold prices will move after the Non-Farm Payroll (NFP) report.
The MACD is calling exaggerated bearish levels despite the bullish price action, indicating strong buying strength. The RSI also signals oversold conditions despite a higher low swing, reinforcing momentum for further upside. Price action forecasting suggests that silver has shifted bullish, making it an attractive market for buying opportunities.
DXY (US Dollar Index)
The USD trading dynamics remain weak as the dollar continues to drop, briefly pausing in yesterday’s session. It is setting up for a potential major decline following the upcoming economic news. However, there is still room for a minor price increase to test relevant structures before resuming its downward trend.
The MACD does not indicate any improvement in bullish volume, while the RSI remains in overbought territory despite muted price action. This suggests that traders should focus on selling opportunities for the USD in the coming days.
GBPUSD
The British pound is experiencing increased selling pressure as markets consolidate, in line with previous expectations. The MACD reflects increased bullish volume despite previous strong bearish movement with minimal price action, while the RSI remains subdued even as prices hold steady.
A short-term drop may occur before a strong rally later. We continue to monitor this market for further confirmation of its trend direction.
AUDUSD
The Australian dollar is seeing increased selling momentum after testing the 0.63407 level. The markets are showing an inclination toward a drop before pushing higher, possibly testing the EMA200 and previous support zones before resuming an upward trend.
The MACD indicates growing selling volume, but the RSI suggests overbought conditions, increasing the potential for a reversal. The correlation between currency pairs suggests that AUD movements are heavily influenced by USD weakness, and we await further confirmations, particularly with the upcoming news release.
NZDUSD
The New Zealand dollar is positioning itself for further gains. However, the MACD signals that selling may continue to test the EMA200 before a turnaround.
Similar to the AUD, the RSI is calling for oversold conditions, which may indicate a shift in momentum. A short-term drop is likely before a stronger push upward, and we await further market confirmations.
EURUSD
The euro is currently navigating several significant price structures, reacting accordingly to support and resistance levels. Consolidation in this pair suggests a minor drop may occur before a significant rally, driven by the forex volatility and spreads linked to USD weakness.
The MACD reflects increased selling, yet it does not align with actual price action, suggesting a growing bullish volume. The RSI remains stable at lower levels, reinforcing strong upside momentum.
USDJPY
The yen has strengthened, breaking below the lowest point of its recent consolidation phase.
Recent developments support the possibility of more Bank of Japan (BOJ) rate hikes, with labor unions in Japan demanding stronger wage growth. Analysts suggest that interest rate hikes of 25 basis points could occur in July and December.
The MACD remains bearish but shows a slight upward cross, signaling potential normalization in the coming days. The RSI also indicates increasing market momentum, pointing to further selling in USDJPY.
USDCHF
The Swiss franc is strengthening as markets react to increased selling pressure on the USD.
The MACD reflects increased bearish volume, while the RSI confirms growing momentum for further downside. Given the current liquidity in forex markets, we continue to look for more selling opportunities in this pair.
USDCAD
The Canadian dollar is showing increased selling momentum after breaking below a previous swing low.
The MACD has crossed lower after a brief rise, while the RSI remains in stable low levels. Market participants are awaiting further clarity following the NFP news release, which will provide direction for this pair. Until then, we expect continued selling pressure on USDCAD.
COT Reports Analysis
- AUD – WEAK (2/5)
- GBP – STRONG (5/5)
- CAD – WEAK (3/5)
- EUR – WEAK (2/5)
- JPY – STRONG (5/5)
- CHF – WEAK (4/5)
- USD – STRONG (4/5)
- NZD – WEAK (5/5)
- GOLD – STRONG (4/5)
- SILVER – STRONG (4/5)
