Flash Analysis: What's Shaking the Markets?

Market Analysis

GOLD

GOLD prices are finding increased consolidation, and as we have discussed, the price action being here shows comfort at these higher levels. We expect further buying in the coming days. The MACD and the RSI are expected to turn further bullish, especially as the EMA200 now acts as effective support. If the price does manage to break through the upper boundary, we can definitely expect to see further buying in the coming days.

SILVER

SILVER prices are currently showing increased consolidation. We will stay away from making a speculative call on this price until a clear break of structure occurs.

DXY

The Dollar is currently experiencing increased consolidation as markets wait to see how major data will be released later today. The seemingly empty trading is a direct result of markets being unsure how the upcoming Non-Farm Payrolls (NFP) report will reflect on the FEDs future policy direction. Technically, the MACD is showing increased selling volume while the RSI is indicating exaggerated bullish levels, creating a conflicting picture. The overall price action is also very bearish. Thus, we will continue to look for more selling opportunities once a catalyst emerges.

GBPUSD

The Pound is seeing increased selling momentum, which accelerated after a sell-off in British government bonds yesterday. The pressure on bonds came after comments from a Bank of England official suggested that persistent service-sector inflation might require UK interest rates to stay higher for longer than markets currently anticipate. The MACD and the RSI are now finding increased chances for a sell continuation. However, the overall price action has yet to shift. As we can see in the charts, prices bounced off a relevant structure, rejecting an immediate bearish shift. Thus, we will wait to see if prices will crash below that boundary to shift the overall sentiment.

AUDUSD

The Aussie dollar is little changed with how prices have progressed. We expect further buying to come, but we will wait for a clear break in price.

NZDUSD

The Kiwi is currently finding increased consolidation. We anticipate further bullish movement in the coming days, as the MACD and the RSI are also finding increased buying momentum and volume. However, until a clear breakout of the consolidation is found, we will refrain from overly investing on one side of the market. The EMA200 did act as an effective support for prices.

EURUSD

The Euro is currently finding increased bullish movement, as reflected in the MACD and the RSI. While the RSI is currently indicating overbought levels, any subsequent drop is expected to be part of a healthy retracement, as there is still significant underlying bullish momentum. When prices manage to break the upper boundary, we expect to see further buying continue in the coming days.

USDJPY

The Yen is currently consolidated. The MACD is reflecting heightened chances for a rise in sell volume [for USD/JPY], but the RSI is currently indicating oversold levels. We anticipate further selling to continue in the coming days but will watch closely how prices break out of this structure, as there is a chance that it reverses.

USDCHF

The Franc is currently finding increased consolidation. We will wait to see how the Franc will progress from here, but we do see the MACD and the RSI finding increased selling momentum and volume [for USD/CHF]. We are looking for more bearish opportunities.

USDCAD

The CAD is currently trading lower, finding strength against the Dollar [USD/CAD is falling]. While the drop is immense, the pair is still not far from the previous low point. The MACD is reflecting the strong wave of selling volume coming in. The RSI is quickly retracting from oversold levels despite prices moving only a small amount, which can suggest a loss of downward momentum. Thus, while we remain cautious of how the NFP data will reflect on the markets later, we expect further selling in the coming days.