DBG Markets: Market Report for Mar 18, 2025

MARKET ANALYSIS

GOLD GOLD prices continue their bullish momentum as prices saw increased volume yesterday. As expected, prices extended their consolidation before resuming their upward trend. The MACD reflects this increased volume, crossing upward. However, the RSI is nearing overbought levels, indicating a potential retracement before further continuation.

On Monday, President Donald Trump warned that Iran would be held directly responsible for any further attacks by Yemens Houthi rebels, who have been targeting U.S. and other foreign vessels in the Red Sea. Meanwhile, Trump stated that he would speak with Russian President Vladimir Putin on Tuesday morning about ending the war in Ukraine.

SILVER SILVER prices remain consolidated while GOLD reaches new highs. Market players are keeping SILVER prices subdued, likely using it as a hedge against overpriced GOLD. However, we anticipate an increase in SILVER soon. The MACD reflects gains in bullish momentum, though the RSI suggests a continuation of consolidation for now.

DXY The Dollar is currently consolidating and moving sideways. The RSI has signaled overbought conditions despite the recent high being lower than the previous swing point, suggesting the potential for continued bearish movement. Although the MACD is about to cross upward, we assume this is temporary before a continuation downward. However, price action may shift depending on how Chairman Powell addresses current market conditions and provides insight into the FEDs response. Overall, we anticipate further selling as price action remains bearish.

GBPUSD The Pound has risen but was stopped at 1.29966. Our expectations remain strongly bullish. The RSI is currently oversold and signaling a bullish continuation, while the MACD may cross under temporarily. We anticipate further buying opportunities. A brief sell-off may test the previous upper boundary of consolidation, but with overall bullish price action and concerns over U.S. economic growth weighing on the Dollar, we remain optimistic about the Pounds strength.

AUDUSD The Aussie dollar saw a significant rise yesterday, aligning with our expectations following hawkish signals from the Reserve Bank of Australia.

RBA Assistant Governor Sarah Hunter stated that Februarys rate cut was aimed at easing restrictive policy but emphasized that the board remains more cautious than markets about future interest rate cuts. Strength in the Aussie dollar is also supported by prospects for Chinese economic growth. The MACD is rising steadily, while the RSI indicates oversold conditions despite only a minor retracement. This suggests further bullish continuation, and we look for additional buying opportunities."

NZDUSD The Kiwi is experiencing growth similar to the Aussie dollar, driven by Chinese economic prospects. The MACD is showing steady bullish momentum, while the RSI is oversold, suggesting prices may continue above 0.58166. We expect further bullish movement in the coming days.

EURUSD The Euro is gaining bullish momentum but remains just shy of its previous high. It is unclear whether there is enough volume to push prices higher, especially after China declined an invitation for talks. The MACD shows low but steady rising volume, while the RSI reflects stronger bullish momentum after signaling oversold conditions. We look for more buying opportunities but remain cautious, as markets may continue consolidating. Overall, price action suggests a bullish trend.

USDJPY Yen weakness is becoming more apparent after the breakout we identified yesterday. While the shift has yet to fully materialize, the EMA200 acting as support allowed prices to bounce upward. The MACD remains in consolidation but is beginning to cross upward, signaling potential for a continued bullish move. Meanwhile, the RSI is near overbought levels, confirming the increase in bullish momentum.

Yen weakness stems from market analysts holding off on positions while awaiting confirmation from BOJ policymakers, who began their two-day meeting on Tuesday. They are expected to discuss the risks posed by the escalating U.S. trade war to Japans economy, which will be crucial in determining the timing of their next rate hike."

USDCHF The Franc declined after failing to break above the EMA200, as anticipated. Selling momentum is increasing, aligning with our expectations. The MACD is falling, and the RSI indicates overbought levels, confirming the rise in bearish momentum and volume. We anticipate further selling opportunities in the coming days.

USDCAD The CAD continues to trade within its consolidation range, as expected. We will refrain from making any calls on this market until a clearer breakout occurs. However, the RSI is reflecting increased bearish momentum, while the MACD shows growing bearish volume. Thus, we anticipate more selling opportunities in the coming days.