Your Daily Dose of Financial News

Market Analysis

GOLD

GOLD prices declined after failing to surpass the 3,391.26 level, primarily influenced by a stronger-than-expected U.S. jobs report showing a gain of 185,000 jobs and a +0.4% rise in Average Hourly Earnings, reducing expectations for Federal Reserve rate cuts and bolstering the U.S. Dollar.

Technically, while GOLD has dropped below key levels and the upper consolidation zone, it hasn't turned bearish yet. Bullish structures remain, and we will monitor price reactions at the consolidation zone's bottom boundary. The MACD and RSI indicate increasing bearish momentum, suggesting potential price stagnation.

SILVER

SILVER continues to rise, acting as a potential indicator of sentiment on GOLD's current valuation. The dynamic where GOLD is falling or stalling while SILVER is rising can suggest that, in the short term, the market is pricing in Gold as being overbought. This could lead to Gold falling to a more appropriate level. Once that occurs, there is a chance for SILVER prices to retrace as traders return to GOLD. Currently, the MACD and the RSI for Silver are finding increased bullish momentum and volume gains, allowing us to assume a continuation higher.

DXY

The Dollar is currently seeing an extended consolidation after Friday's sharp rally. This is expected to continue in the coming days as markets await headlines from the U.S.-China trade talks in London. Until we find a definite path forward from those negotiations, we will hold off on calling a specific market direction.

GBPUSD

The Pound is currently showing bullish movement, bouncing off the EMA200. The RSI indicates increased bullish momentum, while the MACD remains neutral despite a previous bearish divergence. Overall, the price action is very bullish, suggesting more buying opportunities ahead. If prices can normalize the RSI's momentum, we may see further gains. We'll monitor the situation but will seek buying opportunities unless a clear downside break occurs.

AUDUSD

The Australian Dollar is currently seeing increased buying interest, with prices staying in a consolidation near the previous high point. Although the RSI is indicating increased selling momentum, the MACD is signaling a rise in bullish volume, as evidenced by its limited reaction to the stronger buying push. The overall price action is also very bullish, not to mention how prices were supported by the 0.64801 level. We expect to see increased buying in the coming days.

NZDUSD

The Kiwi is finding increased buying chances after nearing the EMA200. However, with prices under 0.60455, if it fails to break this high, we might see a test of 0.59796. The RSI is finding increased bearish momentum while the MACD is still in a neutral position. As long as the overall price action maintains the bullish structures, we will stick to looking for more buying opportunities.

EURUSD

The Euro is in an extended consolidation zone, with EMA200 and the previous upper boundary providing support. A breakout is likely if the dollar weakens and there's positive news on a potential E.U.-U.S. trade deal. The MACD shows increased buying volume, but the RSI indicates overbought levels. Prices may either consolidate further or break higher. We'll monitor for buying opportunities as long as the buying structures hold.

USDJPY

The Yen is currently experiencing increased consolidation, and the range is wider than once anticipated. While others speculate, we will hold off on taking any action until we find a clear market direction that breaks either side of the current structures.

USDCHF

The Franc is also within a consolidation just under the previous boundary. However, we anticipate growing chances for a sell continuation [for USD/CHF]. The MACD and the RSI are also finding an increased selling momentum and volume. The overall price action also maintains bearish expectations. Thus, we will keep looking for more selling opportunities.

USDCAD

The CAD maintains its selling momentum [for USD/CAD]. We can see that prices have been supported by 1.36328 and 1.36612. However, the upper boundary of the price range is also holding off any buying attempts. Thus, we might see a consolidation between these levels. However, the MACD and the RSI are indicating increased bearish chances as they reflect growth in both volume and momentum. As long as bearish structures remain, we will maintain our bearish bias.

COT REPORT ANALYSIS

AUD - WEAK (5/5)

GBP - STRONG (5/5)

CAD - WEAK (5/5)

EUR - STRONG (3/5)

JPY - STRONG (2/5)

CHF - WEAK (5/5)

USD - MIXED

NZD - WEAK (3/5)

GOLD - STRONG (5/5)

SILVER - STRONG (5/5)