Today's Financial Markets: Summary & Insights

Market Analysis

GOLD

Gold prices are consolidating, testing the EMA200 as a potential support level for a further rise. The overall price action and structure remain bullish. Downside pressure is currently limited by strong market expectations of a Federal Reserve rate cut in September. However, the recent easing in Gold's rally comes after geopolitical tensions lessened, with U.S. President Trump announcing plans to meet with Russian President Putin to negotiate an end to the war in Ukraine. We will continue to look for bullish opportunities, pending this week's key economic data.

SILVER

Silver prices are consolidating but remain above relevant support boundaries, leading us to expect further bullish momentum. A nuanced technical picture is forming: while the MACD shows some growing bearish volume, this is being met by muted price movement, which suggests sellers are unable to push the price lower. This could signal underlying strength, and we will be expecting further bullish opportunities in the coming days.

DXY

The Dollar experienced a volatile "whipsaw" movement, likely triggering stop-loss orders on both sides of the market. This may set up expectations for further selling. The market's direction will heavily depend on this week's key data releases, including CPI, PPI, and Retail Sales, which will help shape expectations for the Fed's September policy meeting. While peace talks regarding Ukraine provide some temporary support, the overarching narrative of potential rate cuts is limiting the Dollar's upside.

GBPUSD

The Pound is consolidating near 1.34294, but the probability of further buying is higher than a sell-off. The overall price action maintains a healthy bullish structure. Technical indicators suggest that while some selling pressure exists, it is being easily absorbed by stronger buying volume. With the RSI rising and nearing overbought levels, we will continue to look for more buying opportunities.

AUDUSD

The Aussie dollar is in a consolidation phase near 0.65244, with both the MACD and RSI showing similar sideways movement. While we expect an eventual bullish move, the overall trend has not yet clearly shifted. We will wait for more decisive trading before confirming a directional bias.

NZDUSD

The Kiwi is still consolidated, waiting for further clues on its next direction. Like the Australian Dollar, we will wait for a definitive market move before making a call.

EURUSD

Euro prices remain bullish but are currently consolidated under a key resistance boundary. The MACD signals increasing bullish volume. However, the RSI is indicating overbought levels, which could lead to a minor sell-off toward the EMA200 before a potential continuation higher. In any case, we will wait for a clear break of the high before calling for a bullish continuation.

USDJPY

The pair is currently testing the EMA200 as resistance and showing increased chances of a sell-off continuation. However, the price, MACD, and RSI are all reflecting the current consolidation. While the test of the EMA200 was expected, we will wait for a break below the 146.512 support level to confirm the next leg down.

USDCHF

The pair is consolidating on the EMA200 support level. While the MACD is also consolidating, the RSI is showing oversold conditions, which could attract buyers. Although a bearish shift is possible if this support breaks, the current technical setup favors a potential bounce. We will look for signs of a bullish continuation from this level.

USDCAD

The USD/CAD pair is navigating several key technical levels, primarily the EMA200 and the 1.37261 resistance. The trend has shifted to selling. The MACD indicates increasing bearish volume while the RSI reflects the current consolidation in price. We expect further selling to come but will wait for more confirmation.

COT Reports Analysis

AUD - WEAK (5/5)

GBP - WEAK (5/5)

CAD - WEAK (5/5)

EUR - STRONG (2/5)

JPY - STRONG (2/5)

CHF - WEAK (5/5)

USD - WEAK (5/5)

NZD - WEAK (5/5)

GOLD - STRONG (5/5)

SILVER - STRONG (3/5)