Flash Analysis: What's Shaking the Markets?

MARKET ANALYSIS

GOLD

GOLD prices dipped from their recent highs after the U.S. reported better-than-expected JOLTS Job Openings data for April. Although the drop was brief, it provided a retracement opportunity for further price action. However, selling pressure could continue, as indicated by the MACD and RSI showcasing potential bearish momentum. Today's price reaction is crucial, with a bounce off the EMA200 seen as a bullish signal.

Key factors influencing the GOLD market include upcoming U.S. data releases. The OECD's recent report also adds a bearish backdrop, lowering its 2023 U.S. growth forecast from 2.2% to 1.6% and predicting global growth to weaken, citing trade barriers and economic uncertainty.

SILVER

SILVER prices maintain a healthy bullish trend after a seemingly slow rise yesterday. We are nearing the peak high, and prices might continue their ascent. The MACD and RSI are reflecting a healthy upward trend. We will monitor price progression from this point.

DXY

The Dollar strengthened after JOLTS Job Openings data for April surpassed expectations (7.39 million vs. 7.1 million), indicating a more stable labor market. This may lead to a delay in Fed rate cuts, possibly moving to September instead of July, especially after last week's disappointing unemployment figures.

This week's upcoming data, including ADP Employment Change and ISM Services PMI, will influence expectations about Fed rate cuts and the economy's response to President Trumps policies. Trade developments, such as the implementation of the 50% tariffs on steel and aluminum effective June 4th, are also crucial. Technically, the MACD and RSI suggest bullish momentum for the Dollar, but prices are still facing bearish structures, with a clear break needed before confirming a shift in trend.

GBPUSD

The Pound is finding increased buying momentum and volume as it reaches for the previous peak. Yesterdays trading tested the 1.34998 level and found support. While the RSI is showing a normalization of market buying, suggesting a possibility for another retracement or even consolidation, the MACD indicates good chances for a bullish continuation. Thus, we will monitor how prices progress in the coming days.

AUDUSD

The Australian Dollar shows increased bullish potential after testing the EMA200. The MACD suggests a possible bullish shift, but the RSI indicates rising selling momentum and increased bearish volume, hinting at a potential sell continuation. However, we will keep a bullish outlook until theres a clear break in the overall structure.

NZDUSD

The Kiwi is finding increased bearish movement after the sell-off from 0.60455. This shows a failure to break that structure and a retracement from the recent high. We might see a continued move lower but will remain wary of how prices react to the 0.59796 level and the EMA200. After all, the overall price action is still very bullish. The MACD and RSI are also indicating increased bearish growth, reflecting that prices may shift from here. However, until we see the shift occur, we will maintain our search for bullish opportunities.

EURUSD

Euro prices have retraced from their high and are showing weakness. The RSI and MACD are strongly reflecting selling momentum and volume. This suggests that prices might consolidate before a potential continuation higher, unless we find a strong rejection of price levels at support, the EMA200, and the upper barrier of the consolidation zone. Thus, we will wait for further market movement before adopting a definitive bias. Currently, we remain focused on looking for more buying opportunities as the overall price action maintains its bullish structure.

USDJPY

The Yen is currently presenting increased selling opportunities [for USD/JPY] as the price tests the EMA200. We are yet to see a shift back to overall buying momentum [USD/JPY strength]. Thus, even if current price action shows increased chances for a buy continuation, as evidenced by the MACD and RSI showing growth in bullish volume and momentum, we will still maintain our hunt for bearish opportunities [USD/JPY weakness]. Nothing is final until a clear break of structure is observed.

USDCHF

While the Franc has lost some steam [USD/CHF rose], we are seeing bearish structures [for USD/CHF] being respected. The EMA200 and the consolidation zone are fostering continued selling pressure. The MACD and RSI, however, are indicating a potential for bullish continuation due to the immediate price movement. Nevertheless, we will remain bearish on the pair until we find a clearer market break upward.

USDCAD

The CAD maintains strength [USD/CAD weakness] despite some strength in the Dollar. The MACD is signaling potential for heightened volume on the downside after a normalization occurred from the retracement area. The RSI, however, is nearing oversold levels. We expect further selling [of USD/CAD] to continue in the coming days. We will wait for a clear break of structure but will also look for more bearish opportunities.