Today's Trader's Edge

Market Analysis

GOLD

GOLD prices have bounced off the bottom boundary of their range but are still, overall, consolidated. The MACD and the RSI appeal to the potential for prices to continue bullishly in the coming days. This underlying strength comes after a dramatic escalation in the Middle East over the weekend. In a major development, the U.S. has decided to join the fight by launching strikes on three key nuclear sites in Iran. News reports from sources like the Associated Press confirmed that U.S. B-2 bombers attacked Iran's Fordow, Natanz, and Isfahan nuclear facilities. President Trump confirmed the strikes, warning Iran that if they target U.S. military forces, they will be met with "far greater force."

The world is now on standby to see how this situation will turn out. Will Iran attempt to enter peace talks, or will they pursue a greater attack than their last missile barrage on Israel？ In response to the heightened risk, the World Bank and the IMF have already downgraded their global growth forecasts, and Oil prices have soared, with WTI crude jumping over 6% to hit a five-month high near $78/bbl.

We are currently finding a muted response from GOLD, but surges in precious metals are bound to commence. The current market conditions suggest traders are running into Oil as a more appealing asset at the moment, but GOLD is most likely to follow suit. This is also why we will be looking for opportunities to trade GOLD prices further bullishly in the coming days.

SILVER

SILVER prices have found the bottom of the consolidation but are still waiting to see how the market will progress. This market is bound to find a rise in price levels as sentiment is carried by the worries of a broadening war. The MACD is finding increased bullish volume, but the RSI has yet to normalize the buying momentum. We will wait to see how it will progress in the coming days.

DXY

The Dollar is rising after the U.S. demonstrated a significant show of power against Iran. This move has proven that the U.S. is still strong and has the military capacity to maintain its claims. In the immediate term, the Dollar is bound to rise higher due to its primary safe-haven asset status. While we did question its credibility previously, our longer-term outlook remains bearish. Currently, this rise is driven by sentiment momentum. Technically, prices are still within a broader bearish structure, although the MACD is finding bullish volume. The RSI has yet to switch to positive bullish momentum. We will wait to see how it will progress in the coming days.

GBPUSD

Pound prices have continued bearishly as we expected, with prices failing to break above the EMA200. The MACD is also finding increased bearish volume, while the RSI is about to normalize the bearish momentum. We anticipate further selling to come in the coming days.

AUDUSD

The Australian Dollar, a risk-on currency, is currently finding increased bearish movement as the war has progressed in the Middle East. Risk assets are now experiencing increased selling pressure, with the MACD finding increased selling volume and the RSI also following through on the bearish momentum. We expect further selling in the coming days.

NZDUSD

The Kiwi is following the Australian Dollar. There is an increased expectation for the markets to continue bearishly with the Kiwi. The MACD is finding increased bearish volume, and the RSI is also seeing a normalization for a potential selling continuation. We will look for more bearish opportunities in the coming days as the overall market movement has also shifted bearish.

EURUSD

The Euro is maintaining its market consolidation and is holding above the EMA200. We will retain our overall bullish outlook on its volume and momentum. The MACD is seeing increased bearish volume while the RSI is also normalizing the selling. However, the RSI is also indicating oversold levels. Thus, there is a chance for markets to continue bullishly from the current price levels. We will wait for further market progression before taking any action.

USDJPY

The Yen's weakness is further evidenced by the rise in USD/JPY, as we expected from last week. There is an increased expectation for further buying to come into the pair in the coming days. The MACD and the RSI are following through on the bullish volume and momentum.

USDCHF

The Franc is finding increased consolidation. The MACD and the RSI are also still consolidated. We will wait to see how prices will progress in the coming days. However, overall, we do anticipate strength coming into the Franc as a primary safe haven.

USDCAD

The CAD continues to rise [USD/CAD is rising], and the market is finding an increased bullish continuation. The MACD and the RSI are also indicating chances for a market continuation higher in the coming days. We anticipate further buying to continue as the overall price action still follows through.