Where Are Markets Headed Next?

Market Overview

The U.S. Dollar remains under pressure following yesterday's Core CPI data, which has increased market expectations for a Federal Reserve rate cut. Traders are now awaiting the Producer Price Index (PPI) release for further confirmation.

Market Analysis

GOLD

Gold is consolidating as it tests the EMA200. The technical picture is mixed; while the long-term outlook remains bullish due to expectations of Fed easing, the short-term price action shows bearish pressure. We will wait for a clear directional break from the EMA200 before making a call.

SILVER

Silver is seeing increased buying pressure as the U.S. Dollar showed further weakness yesterday. The MACD and RSI both reflect bullish growth in volume and momentum. We expect this buying interest to continue in the coming days.

DXY

The Dollar is showing increased bearish movement but remains within its consolidation range for now. According to the CME FedWatch Tool, the probability of a September rate cut rose to 94.3% after yesterdays Core CPI report. The MACD and RSI both point to building bearish pressure. We anticipate a continuation of the sell-off, but the upcoming PPI release will likely be the primary driver of the next major move.

GBPUSD

The Pound is trading near 1.34998 and showing increased chances of a buy continuation. The MACD and RSI both reflect growing buying momentum and volume. We expect further buying in the coming days.

AUDUSD

The Aussie dollar is seeing a buying continuation as it finds support on the EMA200. While the MACD and RSI are currently consolidated, we expect further buying due to the broad-based weakness in the U.S. Dollar.

NZDUSD

The Kiwi is also in a consolidation phase. However, the MACD and RSI indicate a rise in buying volume and momentum. Our overall expectation is for a bullish move, and we will watch for a breakout.

EURUSD

The Euro is finding increased buying opportunities after bouncing off structural support and the EMA200. The MACD and RSI both reflect further buying volume and bullish momentum, suggesting more strength in the coming days.

USDJPY

The pair is testing the EMA200 but has returned below the 148.104 resistance level, keeping it in a consolidation zone. The underlying momentum remains bearish, and we anticipate further selling in the coming days. However, we will hold off on a specific call until we see a clearer break of the current structure.

USDCHF

The pair is testing the EMA200 but has returned below the 148.104 resistance level, keeping it in a consolidation zone. The underlying momentum remains bearish, and we anticipate further selling in the coming days. However, we will hold off on a specific call until we see a clearer break of the current structure.

USDCAD

The USD/CAD pair is consolidating on key support at the EMA200 and the 1.37881 level. However, the overall price action remains bearish, further supported by the weakness in the U.S. Dollar. We will continue to look for more bearish opportunities.