Market Overview
This week is filled with crucial data releases and market-moving announcements. On Tuesday, Canadian CPI and the UK Unemployment Report will be released, followed by New Zealand CPI on Wednesday. Thursday brings Canadian Retail Sales and US Unemployment Claims, while Friday features Flash Manufacturing and Services PMI reports from Europe, the UK, and the US, along with the Bank of Japan’s (BOJ) outlook announcement.
US markets start the week with a holiday on Monday, but major shifts are anticipated as President Trump’s policies take shape post-inauguration. Investors are closely watching how these policies impact domestic and global markets. In the Middle East, Israel’s agreement to a truce deal signals potential stability, but continued airstrikes suggest lingering volatility. Iran-Israel tensions remain a possible flashpoint, carrying broad implications for global forex patterns.
Market Analysis
GOLD
Gold prices remain above the critical support level at 2689.197, presenting strong buying opportunities. RSI indicates normalization with price divergence, while MACD reflects increased selling momentum. However, price action remains bullish, with candlestick patterns confirming key entry points. Portfolio allocation should consider gold’s strength as geopolitical uncertainties persist. Auto trade alerts suggest continued demand.
SILVER
Silver consolidates within resistance at 30.6675, despite gold’s movement. MACD and RSI show increased selling momentum and divergence, while key support at 29.9000 holds firm. As long as this level is maintained, silver aligns with global forex patterns, providing steady entry point strategies for traders utilizing auto trade alerts.
DXY
With Trump’s inauguration nearing, the dollar remains consolidated, awaiting policy-driven market shifts. RSI and MACD indicate buying potential, though global forex patterns suggest volatility ahead. Entry point strategies will be key in responding to economic changes triggered by upcoming announcements.
GBPUSD
The Pound struggles below 1.23000, facing resistance. MACD and RSI show reduced selling momentum but lack a clear bullish signal. Price action respects the bearish structure, and auto trade alerts recommend caution before making portfolio allocation adjustments.
AUDUSD
The Australian Dollar remains in consolidation, failing to break past its previous swing high. MACD shows buying strength, but RSI suggests overbought conditions, hinting at a potential pullback. Candlestick patterns suggest a cautious approach as traders assess Trump’s policies. Portfolio allocation strategies should factor in global forex trends and risk exposure.
NZDUSD
The New Zealand Dollar faces ongoing selling pressure, stabilizing below its consolidation zone. While MACD hints at bullish potential, RSI signals overbought conditions, increasing the likelihood of a reversal. Entry point strategies should be applied carefully as selling momentum remains prominent in global forex patterns.
EURUSD
The Euro consolidates within a defined range, with 1.03311 acting as strong resistance. MACD lacks directional conviction, while RSI signals overbought levels, reinforcing further downside potential. Candlestick patterns confirm a bearish structure, necessitating cautious portfolio allocation.
USDJPY
The Yen weakens as prices fail to reach previous highs. MACD and RSI indicate growing bullish momentum, but overall price action remains bearish. BOJ’s decision to delay rate hikes contributes to the Yen’s struggles, with analysts eyeing potential policy adjustments in March. Auto trade alerts highlight short-term fluctuations in this forex pair.
USDCHF
The Swiss Franc remains bullish above previous swing lows. MACD signals continued buying momentum, while RSI suggests oversold conditions, reinforcing a strong upside. Portfolio allocation should consider sustained strength in this currency.
USDCAD
The Canadian Dollar weakens, breaking above 1.44440. RSI divergence suggests a potential pullback before resuming a bullish trend. MACD indicates rising buying momentum, keeping price action bullish. Candlestick patterns highlight potential entry points, making portfolio allocation adjustments vital.
COT Reports Analysis: Portfolio Allocation & Market Sentiment
AUD – WEAK (4/5)
GBP – WEAK (5/5)
CAD – WEAK (4/5)
EUR – WEAK (4/5)
JPY – WEAK (5/5)
CHF – WEAK (5/5)
USD – STRONG (5/5)
NZD – WEAK (4/5)
GOLD – STRONG (5/5)
SILVER – STRONG (5/5)
