DBG Markets: Market Report for May 29, 2025

MARKET ANALYSIS

GOLD Gold prices are showing increased bearish movement, with both the MACD and RSI indicators indicating bearish momentum and volume. The overall price action has shifted bearish, as prices have broken below both the EMA200 and the lower price boundary.

This shift in market momentum follows the dissipation of worries over further tariffs. A ruling from the U.S. Court of International Trade found that President Donald Trump had exceeded his authority in imposing reciprocal tariffs. The court ordered these measures to be vacated and permanently blocked, representing a significant setback for the presidents economic agenda. The administration is expected to appeal the decision.

Minutes from the Federal Reserves May meeting indicated that they are taking up a more patient stance as they stand to witness how the current shift in policies, including the blocking of tariffs, will affect the economy. The Fed also acknowledged increased risks of both inflation and unemployment.

SILVER Silver prices remain consolidated, holding within a minimal price range. The MACD indicator also reflects this consolidation, while the RSI is fluctuating between overbought and oversold levels within the price boundaries. Therefore, we must await a clearer market movement. However, we anticipate that prices will likely remain in consolidation over the long run.

DXYThe Dollar surged upward as concerns regarding further tariffs lessened. Further strength is expected, but there is also a possibility that prices will consolidate or trade sideways until a clearer fundamental picture emerges. While we cannot yet confirm a definitive shift in momentum due to the strong price gap, there is a significant chance that the market will now experience bullish continuation. The MACD and RSI indicators show increased bullish volume and momentum.

GBPUSDThe Pound shows increased potential for a bearish continuation. Both the MACD and RSI suggest a bearish continuation. However, we are not yet calling for an overall shift to selling, as prices continue to respect existing bullish structures. We will await a clear break of structure before confirming a shift in market momentum. For now, we remain watchful for a potential bullish shift from current price levels.

AUDUSDThe Australian Dollar is experiencing increased selling momentum and volume, with prices currently testing the key structural level at 0.64086. If prices manage to break below this level, we expect further losses to be priced in.

NZDUSDThe Kiwi has lost strength, falling from the 0.59796 level. We expect trading to remain bearish, as prices show increased potential for a continued sell-off. However, until there is a complete shift in overall price momentum, we will retain our long-term bullish bias. The MACD indicates increased bearish volume; however, it doesn't fully reflect the strength of the sell-off despite the strong price movement, suggesting potential divergence. The RSI is also slow to reach oversold levels, which could indicate growing selling momentum. We will await a clearer break in structure before calling a shift in the overall momentum.

EURUSDThe Euro has established a larger consolidation zone. If prices fail to break below 1.11747, we expect the consolidation to continue. However, the current price action has shifted towards an overall selling momentum, supported by significant volume and momentum indicated by both the MACD and RSI. Therefore, we will be looking for selling opportunities going forward.

USDJPYThe Yen continues to weaken against the Dollar, as expected, following the complete shift in market momentum. We anticipate this buying [of USD/JPY] to continue. The MACD and RSI now show increased bullish momentum and volume, reinforcing expectations for continued bullish price action as the long-term outlook for the Yen appears bleak. The U.S. Dollar's own bullish strength also contributes to the Yen's weakness.

USDCHFThe Swiss Franc continues to weaken against the U.S. Dollar. Prices [USD/CHF] have moved above the EMA200, and both the MACD and RSI indicate increased bullish movement and volume. The overall price action has also shifted to bullish. Therefore, we will continue to look for further bullish movement in this pair.

USDCADThe CAD has lost some strength following gains in the Dollar. The MACD shows increased bullish volume, and the RSI indicates rising bullish momentum. While prices have moved beyond the EMA200 with clear indications of bullish continuation, they have yet to reach the key structure required to confirm a shift. Until we see a break of this structure, we will not call for a shift and will remain cautious, looking for selling potential around these levels.