Market Analysis
GOLD
Gold prices remain consolidated throughout the day, showing minimal movement. It may be positioning itself for gains following the release of U.S. payroll data. Before that, there is a possibility of a brief drop to test the previous higher swing low before continuing upward. The U.S. payrolls report will provide clearer market direction.
The MACD is currently crossed upward, signaling potential buying opportunities. The RSI is in consolidation, not reaching extreme levels. Price action remains bullish, with the EMA200 acting as a solid support level within the consolidation. While waiting for the NFP data, expectations lean toward continued gold buying in the coming days.
SILVER
Silver prices are consolidating at higher levels, appreciating before gold. This indicates that the market is anticipating gold’s direction following the NFP news release. The MACD is signaling exaggerated bearish levels despite bullish price movements, reflecting increased buying strength. The RSI is also in oversold territory despite forming a higher low, reinforcing strong momentum for an upward move. With price action confirming a bullish shift, silver remains a buying opportunity.
DXY (Dollar Index)
The dollar remains weak but stabilized in the previous session. It is preparing for a potential significant drop with the upcoming news, though a temporary rise to test key resistance levels could occur before further declines.
The MACD is failing to show an improvement in bullish volume, while the RSI is overbought after only a slight price increase. This confirms a continued bearish outlook, signaling that selling opportunities should be prioritized in the coming days.
GBP/USD
The pound is showing increased selling pressure while consolidating as expected. The MACD indicates growing bullish volume after a period of strong bearish momentum with minimal price action. The RSI is also maintaining lower levels despite price stability.
There may be a brief dip before a significant upward move later. Further confirmations are required, but overall, the expectation remains bullish in the coming sessions.
AUD/USD
The Australian dollar is experiencing stronger selling momentum after testing 0.63407. Markets are setting up for a possible decline before continuing upward, testing both the EMA200 and a previous support zone.
The MACD reflects increased selling volume, while the RSI is signaling overbought conditions, suggesting a potential buy setup soon. Market movements will become clearer after the news release, and traders should remain cautious.
NZD/USD
The Kiwi dollar is showing increased potential for further buying. The MACD suggests selling could continue to test the EMA200 before reversing. Similar to the Aussie dollar, the RSI is signaling oversold conditions, indicating a possible trend reversal.
A brief drop may occur before the anticipated rise, so confirmation is needed before entering long positions.
EUR/USD
The euro is interacting with key structural levels, reacting to multiple support and resistance zones. Consolidation suggests the potential for a small decline before a significant bullish move driven by expected dollar weakness.
The MACD is indicating increased selling, but price action suggests that bullish volume is quietly accumulating. The RSI is maintaining lower levels, confirming strong upward momentum.
USD/JPY
The yen has strengthened significantly after breaking below its previous consolidation zone. The move aligns with expectations that the Bank of Japan may raise interest rates further in the coming months.
According to analysts, stronger wage growth this year may lead to additional BOJ rate hikes. Current expectations suggest 25bp hikes in July and December.
The MACD is still in bearish territory but shows a potential cross upward, signaling a temporary retracement before further downside. The RSI is improving, indicating sustained selling pressure in the coming sessions.
USD/CHF
The Swiss franc has started gaining strength following increased selling pressure in the previous session. The MACD reflects continued bearish volume, and the RSI confirms growing downside momentum.
This suggests further selling opportunities in the market, particularly if the dollar weakens as expected.
USD/CAD
The Canadian dollar is experiencing increased selling momentum after breaking below the previous swing low. The MACD is crossing lower following a brief rise, while the RSI remains at low levels, indicating strong bearish sentiment.
Market direction will be further clarified after the news release. Until then, traders should monitor price movements for confirmation of further downside.
COT Reports Analysis
- AUD – WEAK (2/5)
- GBP – STRONG (5/5)
- CAD – WEAK (3/5)
- EUR – WEAK (2/5)
- JPY – STRONG (5/5)
- CHF – WEAK (4/5)
- USD – STRONG (4/5)
- NZD – WEAK (5/5)
- GOLD – STRONG (4/5)
- SILVER – STRONG (4/5)
Conclusion
Global markets remain in a state of uncertainty as traders await key economic data. Precious metals are positioned for potential upside, with gold and silver maintaining bullish momentum. The U.S. dollar faces downside risks, especially if payroll data confirms economic weakness.
Forex traders should use expert forex techniques and high-level trading strategies to navigate market fluctuations. Those trading gold and silver should consider long-term forex planning, as these assets remain strong hedges against economic instability.