Market Updates Today

General Market Overview Today

Yesterday, Iran launched an attack on Israel with over 300 missiles and drones, although 99% of the attack was intercepted and damages were very minimal. Geopolitically, The G7 is to be convened to discuss a response. Russia is backing up Iran while the US is supporting Israel. The US will back up and support Israel in their defense but is unlikely to take an offensive line. As it stands, the condition of the tensions leaves a situation where the likelihood of escalation is almost inevitable. The US seeks to avert this but may not be the one ultimately with the power to decide. With things in flux, markets will become unstable until the final call is made. There is potential for markets to clamor as people feel unrest.

There could be adjustments for how the shift in the world's economy toward a greater military focus may occur at a faster rate than previously anticipated. Tensions existing between countries that call for the help of the US and the G7 will cause a strain on USD and the stock market. We may see the effects in the coming week as the decisions are released. It is important to note that conflict between Iran and Israel may point towards a more concerning matter. It is imperative that everyone is made aware of the potential of such events as further escalation may lead to a wider war between different nations in the Middle East. This could dramatically affect world trade. We stress the full importance of noting that any news release regarding how Israel will deal with an attack on its territory will affect both stocks and currency markets dramatically. Although we have charts for you, it is better to let the markets run for a day and several news cycles as important indicators are lined up this week for USD, GBP, NZD, AUD, and CAD.

We can expect Gold and Silver to increase in value dramatically as the confidence in currencies will slowly falter. We could also expect a gain in momentum temporarily for the USD as people further lose confidence in the long-term prospects of the country and further invest in the short-term prospects.  However, as things stand, there is a higher possibility for the demand on the USD to fall as investors look for a better alternative and wait for tensions to lessen or find a conclusion. We can also see a bearish EUR as the ECB announced to leave their interest rates alone.

However, they do still plan to transition towards a looser monetary policy despite a positive outlook on the inflation rate moving forward. In the short term, EUR may lose out on the USD and the GBP.Do take note that during these market conditions with high uncertainty, the volatility and risk of trading the forex and stock market rise exponentially.  Last-minute changes to the analysis may occur as changes in geopolitical relations and conditions happen. It is also important to note that charts this week may reflect a different unfolding of events than we anticipate.

GOLD - Froma trader's perspective, we should finda pullback towards the zone of 2261.156 and 2227.61 for better entries. We can even see the Gold potentially pulling back towards the 2080.360 as the farther it goes to create new highs, the higher the risk for a bearish pull to happen. However, as things are geopolitically, we may see Gold on the bullish run with no signs of stopping. And so, we view gold positively as we hope to see a pullback for entries going long. If there is no pullback, there are opportunities to be found as a potential slowdown can occur inthe supply zone at 2487.026 and 2449.620. It is also important to note that the price must go beyond the hourly structure at 2431.936.

SILVER - Similar to Gold, we expect Silver to increase in value as war tensions rise as Silver is used in many war-related technologiesand weaponry. It is also important to note that Silver is close to testing the upper boundary of the Monthly range at 29.900. We can see a potential retracement towards the 0.5 of the Fibonacci or at 27.095 to 26.963 for a better entry. There is also a chance for the price to continue itspullback toward 25.773. However, we still view this very positively and expect a bullish run in the coming market move.

DXY - DXY charts still appearvery bullish. We still expect the run to go until 106.848 if things go according to plan. What may change the course of the charts is US decisions on war against Iran and in their ability to defend Israel soil. It is also important to note that the several economic indicators to be released this week will also impact peoplessentiment and confidence which may cause a shift in momentum.

GBPUSD - We saw GBP play outour expected market turnout as prices went below the lower boundary of the Monthly range of 1.27938 and 1.25019. If prices go beyond 1.23720, we can see markets going into daily structure at 1.20389 and potentially, testing yearly structure at 1.19153.

AUDUSD - AUD followed through and broke the daily structure at 0.64801. We see prices potentially breaking through the 0.64427 and into the monthly structure at 0.63407. While it is also likely for prices to stagnate.

NZDUSD - We can see NZD breaking through 0.58856 and into the daily structure at 0.58166.  There is potential for NZD to stall for trades in between the two daily structures but a run below the 0.58166 may happen. Upon a successful break, 0.5562 becomes the next target.

EURUSD - The chart is still looking very bearish for the EURUSD as the squeeze of the market proved to be a bearish pennant as the price broke through 1.07240. This run may test the monthly structure at 1.04672.

USDJPY - While we may want to see a pullback for better entries, we still view USDJPY to be very bullish as it pushed through 151.700 successfully. This push may test into the yearly structure at 161.105.

USDCHF - Beforeexpectations, USDCHF has respected the upward channel and has proved its break above the anchor point of the channel and seemingly reaching to test the 0.92248 structure. Upon a successful breakout, a test on the 0.93711 is the next target.USDCAD has proven bullish as prices have now tested the daily structure at 1.37881. A successful breakout may call for a test at 1.38402. A retracement toward hourly structure at 1.37022 or 1.36697 may prove a better entry.

USDCAD - USDCAD has proven bullish as prices have now tested daily structure at 1.37881.A successful breakout may call for a test at 1.38402. However, a retracement toward hourly structure at 1.37022 or 1.36697 may prove a better entry.