Where Are Markets Headed Next?

Market Analysis

GOLD

GOLD prices fell from the high after touching the 3,391.26 level. This fall came unexpectedly, especially given the fundamentally bullish backdrop of heightened tensions in the Middle East and a weaker dollar outlook. The current thinking is that some larger traders took profits, driving prices down to find better value before a potential buy continuation. Regardless, prices are at a level that presents increased buying chances. However, the RSI is reflecting an exaggerated buying condition, and the MACD is showing bearish growth. Thus, we will wait for prices to normalize before considering new buy entries, although our overall expectations remain bullish.

SILVER

SILVER prices remain consolidated despite the recent volatility in Gold. This unusual price divergence, where Silver is not mirroring Gold's movements, suggests some atypical market dynamics are currently at play. Therefore, our approach is to wait for a definitive break of the market structure before committing to a specific direction.

DXY

The Dollar found strength from the low before the end of yesterday's session. The market is now in a holding pattern as it awaits the release of key U.S. Retail Sales data later today. Technically, the MACD is currently finding increased bullish movement and might tap the EMA200 before a potential continuation sell. In contrast, the RSI is indicating increased selling momentum after showing overbought levels on shorter timeframes. We will wait for a break of structure for clearer direction.

Longer-term, we are observing that the Dollar is losing ground to other major currencies during risk-off periods. This supports the view that the Dollar may be losing some of its traditional safe-haven status, as it has recently underperformed other havens like the Swiss Franc and Japanese Yen.

GBPUSD

The Pound is currently finding increased bullish movement but is still consolidated. We will wait to see how the market progresses in the coming days. The MACD is also indicating increased bullish movement, while the RSI is nearing oversold territory, which could support a move higher. We anticipate further buying but will wait for prices to break out of the current structure. This resilience is notable despite the supposed strength in the dollar.

AUDUSD

The Australian Dollar is still in a consolidation but has been winning against the Dollar. Both the MACD and RSI are indicating increased chances for a bullish continuation. We anticipate further buying but will wait to see how prices break out of this structure. Currently, prices appear to be retracing from the high before a potential continuation.

NZDUSD

The Kiwi is finding increased bullish momentum and volume, with the MACD and the RSI reflecting this strength in buying activity. We anticipate further buying to continue, especially if prices break the top of the structure. We will wait to see how prices progress in the coming days.

EURUSD

The Euro is still consolidated, staying just under the 1.16110 level after failing to break above it. We anticipate further buying to continue but will wait to see how it progresses and if it can break the structure high.

USDJPY

The Yen is still losing ground against the Dollar but remains within its consolidation zone. We will hold off on any calls right now until we see a clear break of structure.

USDCHF

The Franc is currently showing potential for a selling continuation [for USD/CHF] as it acts as a preferred safe-haven alternative to the Dollar. We are seeing continued selling momentum, as evidenced by the muted price response to the MACD's upward push and the overbought levels reflected in the RSI on shorter timeframes. Thus, we will look for more selling opportunities.

USDCAD

The CAD is finding increased selling momentum and volume [for USD/CAD]. We anticipate further selling to continue in the coming days. The MACD is also indicating increased selling volume despite the apparent consolidation we are seeing right now.