DBG Markets: Market Report for Nov 05, 2024

Market Overview

All eyes on elections to be concluded later this evening. Until then, expect large volatility to come into the markets. At this point in time, we are seeing increased chances for a Harris win according to polls. However, this may still change until we see the elections results come out.

GOLD - GOLD price is finding support around the S&R zone at 2716 after breaking below 2732. We can see the MACD about to shift as this hourly candle closes, with the RSI following through. Contrary to our expectations, despite worsening conditions in West Asia and the nearing conclusion of elections, were observing a dip in GOLD prices. This is prompting investors to take profit before election results are announced. Fundamentals will dominate charts as we approach election outcomes and the rate cut announcement.

SILVER - SILVER prices are trading below the low of 32.518. Market momentum has shifted after falling under 33.503, aligning price action with ongoing momentum and expectations. Although fundamentals don't fully support the ongoing intensity in West Asia, this suggests the U.S. elections play a larger role in markets, as they will influence future prospects of resolution and development. The MACD supports the sell signal, while the RSI leans toward sellers.

DXY - The Dollar will likely recover to close the gap before announcements. Current discussions center on market expectations if Harris or Trump wins. The Dollar is gaining strength, with the RSI indicating increased buying momentum alongside the MACD. Price action confirms this, as prices rise to close the gap, setting up for consolidation as fundamentals align with upcoming announcements.

GBPUSD - The Pound's RSI doesnt show any major directional trend, with indications of a mid-level turnover as the MACD crosses toward a bearish run near the midline. We also see price rejection again at 1.29966. Market expectations lean toward selling, with the prospect of a rate cut in November. However, market direction will depend on the size of the cut relative to the U.S. rate cut. While awaiting data releases, current price momentum supports continued selling.

AUDUSD - The Aussie Dollar shows rejection upon reaching the previous swing high, indicating current market momentum favors continued selling. The MACD has crossed into a sell signal, but the RSI has yet to confirm bearish momentum due to a divergence, hinting at the potential for bullish continuation. Well await additional news and data in this fundamentals-heavy week.

NZDUSD - The Kiwi continues to follow bearish momentum after being rejected by the previous swing high. The MACD supports this sentiment, with the RSI curving downward toward the midline. However, theres potential for a market reversal, as RSI divergence on the lows suggests a potential continuation of bullish movement.

EURUSD - The Euro remains in an upward trend, consistent with current momentum. However, in the coming days, the Euro may correct to close the gap, as the RSI stays in the selling zone and the MACD remains in line. While the RSI appears to be curving upward, a rejection at the midpoint would suggest continued downward movement as the MACD builds momentum in the histogram. We still anticipate continued Euro buying, with a rate cut for the Dollar expected soon.

USDJPY - The Yen finds continued bullish momentum, as the MACD and RSI align with the buying trend. Markets are finding support around the previous swing low, which suggests a continuation of this upward trend. However, this may only hold until prices close the existing gap. After filling the gap, a potential change in direction could emerge. Therefore, we await the upcoming data releases to see how they may impact prices.

USDCHF - The Franc is showing strength, with the market moving down between two S&D zones. The gap left by price may fill before continuing lower, a scenario similar to the Euro. Both RSI and MACD suggest this upward move may occur soon.

USDCAD - For the CAD, price was rejected at the previous swing low, indicating continued buying in the market. The MACD crosses upward with this candle, and the RSI remains above the midpoint. However, a curve in the RSI may suggest a short-term correction back to the S&D zone.