DBG Markets: Market Report for Jan 17, 2025

Market Analysis

GOLD - Gold prices have risen significantly following yesterday‘s trading session. Recent data has greatly influenced the markets, with analysts anticipating more Federal Reserve rate cuts in the coming months. Currently, 2722.268 is acting as resistance, holding off further rally attempts. Both the MACD and RSI indicate increased bullish momentum, suggesting the potential for continued upward movement. While we await further confirmations, overall price action remains very positive for buyers. Fundamentally, geopolitical complications have increased gold’s appeal as central banks ramp up purchases, anticipating further global uncertainties.

SILVER - As expected, silver prices remained steady despite golds upward surge. This reflects its role as a stable alternative asset, with its market impact typically slower to materialize compared to gold. The RSI remains positive for the bullish structure, and the MACD shows minimal selling pressure. Although volume is low, the current price levels suggest significant buying potential.

DXY - The dollar is currently consolidated, with momentum favoring selling after successfully breaking below the previous swing low. This shift confirms a bearish price action trend. Both the MACD and RSI show increased selling volume and momentum, indicating further declines. The ongoing selloff comes ahead of Trump‘s inauguration, as analysts speculate on how he will address the challenges left by the Biden administration. While outcomes may vary, Trump’s initial policy decisions will be closely watched for their impact on the dollar.

GBPUSD - The pound remains consolidated, failing to take advantage of the dollars recent weakness. The 1.23000 level continues to act as strong resistance. Both the MACD and RSI are showing a lack of conviction, awaiting clearer signals from the market. Overall, price action continues to respect the bearish structure.

AUDUSD - The Australian dollar is showing signs of a potential buying continuation as prices move back into the consolidation zone. The MACD reflects increased buying strength, with the current selloff already displaying large volumes. Similarly, the RSI indicates oversold conditions at the previous swing low but also highlights exaggerated levels in both directions, signaling consolidation. Overall, price action has shifted back to a bullish momentum, though fundamentals suggest potential headwinds due to expected U.S. dollar strength.

NZDUSD - The Australian dollar is showing signs of a potential buying continuation as prices move back into the consolidation zone. The MACD reflects increased buying strength, with the current selloff already displaying large volumes. Similarly, the RSI indicates oversold conditions at the previous swing low but also highlights exaggerated levels in both directions, signaling consolidation. Overall, price action has shifted back to a bullish momentum, though fundamentals suggest potential headwinds due to expected U.S. dollar strength.

EURUSD - Euro prices remain consolidated, with 1.03311 serving as strong resistance. The MACD indicates rising selling volume, while buying pressure has failed to establish significant momentum. The RSI is overbought near resistance, reflecting increasing selling pressure. Overall, price action continues to respect the bearish structure, with yesterdays session offering no meaningful market developments.

USDJPY - The Yen continues to gain strength ahead of Trumps inauguration on January 20. The MACD shows increased selling momentum as the recent bullish cross failed to generate significant upward movement. The RSI reflects rising selling pressure and divergence with price, suggesting further declines. Overall price action respects the bearish structure, and markets are expected to move lower, with potential for a sharper crash.

USDCHF - The Franc is seeing increased selling momentum as it gains strength against the dollar. The RSI remains consolidated, though recent action shows overbought conditions despite weak highs, while the lows are normalized. The MACD has just crossed, and its upcoming prints will determine whether volume and momentum increase further. Price action has broken below the previous swing low, shifting market momentum toward bearish movement.

USDCAD - The Canadian dollar remains consolidated between 1.44440 and the lower boundary of the price range. The MACD shows increased buying momentum but lighter histograms as prices approach resistance. Similarly, the RSI indicates overbought conditions near previous swing highs. This divergence in price suggests a possible retracement before continuing higher with more normalized price action.