Gold
Gold prices have surged, nearing historic highs, with both the MACD and RSI indicating strong potential for continued bullish momentum. President Trump’s directive for federal agencies to explore tariff adjustments to match those of other countries has fueled fears of a global trade war, as highlighted by ANZ Research. This development has prompted nations to increase gold purchases as a safeguard against potential economic disruptions. The overall price action for gold remains decisively bullish, supported by both technical and fundamental factors.
Given the market’s reaction, price action forecasting suggests gold’s role as a hedge against a weakening dollar remains intact. Compounding forex profits in gold-related trades may present opportunities for short-term investors, while long-term holders continue to benefit from gold’s sustained strength.
Silver
Silver prices are becoming more appealing as gold reaches new highs. The MACD is on the verge of crossing upward, while the RSI has already indicated oversold conditions at a higher swing low, signaling a bullish continuation. Although the MACD hasn’t yet confirmed the crossover, the chart suggests a growing potential for upward momentum. If silver breaks above the 32.5177 resistance level, short-term forex gains could follow, driving further bullish traction.
DXY (U.S. Dollar Index)
The dollar experienced a significant decline, aligning with our technical analysis, which suggested a continuation of the bearish trend. Prices remain firmly below the EMA200, reinforcing the overall bearish structure, while the MACD indicates increasing bearish volume and momentum. The RSI continues to show consolidation, implying further potential for downward movement.
Despite expectations for delayed rate cuts from the Federal Reserve, traders are closely monitoring trading platform features to navigate market fluctuations. Hot CPI and PPI data suggest a stronger dollar, yet profit-taking and market sentiment are currently driving short-term weakness. Major and minor currency pairs remain highly volatile amid uncertainty surrounding new tariff policies.
GBPUSD
The British pound is currently bullish, supported by momentum from the MACD and RSI. The market has regained a bullish stance after surpassing 1.24754. However, resistance at 1.26163 and 1.25740 may limit further upside in the immediate term. While consolidation is possible near these levels, the short-term outlook remains positive unless a reversal signal emerges. Short-term forex gains remain possible, provided momentum holds above critical resistance.
AUDUSD
The Australian dollar has broken above its consolidation zone, showing strong bullish momentum fueled by recent dollar weakness. The RSI is in overbought territory, hinting at a possible short-term pullback, but the MACD continues to show rising volume. While the near-term technicals favor further gains, the longer-term fundamental outlook remains bearish for the Aussie against the U.S. dollar. Trading platform features will be essential for traders looking to capitalize on short-term movements.
NZDUSD
The New Zealand dollar remains range-bound, with no definitive shift toward bullish momentum. The MACD is gaining volume, albeit at muted levels, while the RSI shows overbought conditions, suggesting a potential pullback. For now, the key level to watch remains 0.56859, as prices need to hold above this to indicate a more sustained bullish trend. Compounding forex profits remains difficult in such a range-bound market without clearer breakouts.
EURUSD
The euro has shifted back to bullish momentum, driven by optimism surrounding a possible resolution to the Russia-Ukraine conflict. While the MACD has yet to confirm this strength, the RSI reflects increasing bullish momentum. The next significant resistance lies at 1.04672. If the current momentum fails to breach this level, consolidation may continue, but the bias remains toward further bullish movement. Price action forecasting will play a crucial role in managing expectations for future movements.
USDJPY
The yen recovered its losses but is now testing previous swing lows for a potential shift back to bearish price action. The RSI and MACD show increasing bullish volume and momentum, but the EMA200 acts as resistance. Depending on market conditions, the recent gains may prove temporary. More clarity is needed before confirming a full directional shift. Trading platform features will be necessary for managing risk and determining ideal entry points.
USDCHF
The Swiss franc has entered a bearish phase, with the MACD and RSI reflecting strong selling momentum. Prices have broken below the EMA200, and the overall price action suggests further downside in the coming days. Short-term forex gains may be possible for those positioning for continued weakness.
USDCAD
The Canadian dollar has continued its bearish trend, as predicted, with both the MACD and RSI confirming increasing selling momentum. While the overall price structure remains bearish, key supports at 1.41774 and 1.40723 could challenge further declines. Observing price reactions at these levels will provide clearer guidance on the next steps for the CAD.
COT Reports Analysis
- AUD – WEAK (5/5)
- GBP – WEAK (3/5)
- CAD – WEAK (5/5)
- EUR – WEAK (5/5)
- JPY – STRONG (5/5)
- CHF – WEAK (4/5)
- USD – STRONG (4/5)
- NZD – WEAK (5/5)
- GOLD – STRONG (5/5)
- SILVER – STRONG (5/5)
Conclusion
Market participants should stay prepared for increased volatility as tariff policies and inflation data evolve. Whether trading major and minor currency pairs, monitoring short-term forex gains, or using price action forecasting to make strategic decisions, market conditions remain dynamic.
With trading platform features becoming increasingly sophisticated, traders should leverage these tools to navigate uncertainty and capitalize on compounding forex profits. The interplay between technical, fundamental, and geopolitical drivers will shape the forex landscape in the coming months.
