Today's Breakout Watch

Market Analysis

GOLD

GOLD is currently consolidating. We will hold off on making any calls or speculations at this point until a clear break in structure is found.

SILVER

Prices are also consolidated at the moment. We expect further consolidation to continue in the coming days. The RSI and the MACD are indicating a potential for a buying continuation.

Dollar

The Dollar is currently finding increased buying continuation, though the rally has been somewhat muted. The strength is underpinned by a string of stronger-than-expected U.S. data released today, including Core Retail Sales (+0.5% vs 0.3% forecast), headline Retail Sales (+0.6% vs 0.1% forecast), and a drop in Unemployment Claims (221K vs 233K forecast). This points to a resilient U.S. economy.

However, as you noted, the bullish reaction was tempered by the weaker-than-expected Producer Price Index (PPI) data from earlier in the week, which is keeping hopes for a future Fed rate cut alive and capping the Dollar's gains. Technically, the MACD and the RSI are showing bullish momentum and volume, but the indicators appear bearish relative to the price action, suggesting the underlying strength is not enough to sustain a significant rally.

GBPUSD

The Pound is still consolidated at the moment. We will wait for a clear break of the market structure.

AUDUSD

The Aussie dollar rose after last night's session, gaining some strength against the U.S. dollar. But the overall movement is still very bearish, especially now that it has reached a new lowest point. We anticipate further selling to continue in the coming days. The MACD and the RSI are also reflecting the increased selling momentum and volume.

NZDUSD

The Kiwi is still expected to sell off further as it reaches for the EMA200. While the MACD is indicating growing bullish volume, the RSI is finding increased chances for a sell continuation. Thus, we will look for more bearish opportunities while waiting for the corrective buy retest to end.

EURUSD

Euro prices are still viewed as being in a bearish continuation. We expect the EMA200 to continue to act as resistance to prices. The MACD and the RSI are also reflecting growth for more of a selling continuation. Thus, we will look for more selling opportunities to come.

USDJPY

The Yen is currently seeing increased bullish momentum and volume [for USD/JPY]. The MACD and the RSI are also reflecting this growth. Further weakness in the Yen is anticipated, and we expect more buying [of USD/JPY] to continue in the coming days.

USDCHF

The Franc is still consolidated but is trading well above its previous zone. While we know that the Franc should maintain some strength as a safe haven, we will follow the technical readings of the chart. We anticipate further buying to come into the price [for USD/CHF], as both the MACD and the RSI reflect this growth. In the coming days, we see more buying to continue.

USDCAD

While the CAD market is weak in nature at the moment—and the reactions have been muted—there are expectations for the market [USD/CAD] to continue buying in the coming days. The RSI and the MACD are also reflecting increased buying momentum and volume.