DBG Markets: Market Report for Jan 06, 2025

Reminder

As the markets have officially resumed, it is expected that trading volume will take a few days to return to normal levels. The market activity will likely pick up during the second or third week of January, coinciding with the inauguration of President Donald Trump. However, unless unexpected events arise or key data releases significantly deviate from expectations, there will likely be a period of cautious trading. General market expectations could change rapidly due to sudden geopolitical events or other unexpected news outside of the usual data cycles. Its important to remain vigilant and flexible, as the market sentiment could shift quickly depending on how these external factors unfold.

Thus, even though the market is resuming, its wise to approach with caution in the short term, awaiting the confirmation of trends and the return of stability in trading volume.

Market Overview

GOLD - Golds price action last Friday showed weakness after failing to break the key level of $2,670.882. While the market is currently showing signs of bearish momentum, there remains a higher likelihood of price moving upward due to the proximity of the previous swing low. However, the Relative Strength Index (RSI) suggests bearish continuation with increased selling pressure indicated by the MACD. On the other hand, silver remains within a consolidation range between $29.900 and $29.0177.

SILVER - Given the current market conditions, it is likely that silver prices will continue to the downside, testing the lower boundary of this range. The MACD is showing increased selling momentum and volume, although the RSI hints at potential buying strength.

DXY - The US dollar, after a period of sustained growth, its rise has begun to show signs of slowing. The MACD is indicating lighter selling volume, while the RSI shows the market is approaching oversold conditions, suggesting the potential for a continuation in the upward direction.

GBPUSD - The British Pound has shown strength recently, with buying momentum continuing from a brief pause in the dollars rise. The RSI and MACD both reflect increased volume and momentum in favor of the pound, but overall price action still remains some distance away from signaling a clear shift in momentum.

AUDUSD - The Australian Dollar continues to struggle, even in the face of a weaker dollar. Prices remain largely stagnant between key levels, suggesting a lack of direction. The MACD shows increased selling pressure, although the RSI has yet to give a clear indication of market direction. Further trading is needed to assess how the Aussie reacts to critical market structures, but the outlook remains bearish for now.

NZDUSD - Similarly, the New Zealand Dollar faces heightened selling pressure, with price action stuck within a consolidation zone. The MACD is about to shift downward, further confirming the possibility of lower prices ahead. Despite some uncertainty from the RSI, the overall trend is one of bearish continuation, with selling pressure expected to dominate in the near future.

EURUSD - The Euro is anticipated to continue its weakness, particularly as the year progresses. Current price action suggests a temporary pullback before the Euro tests the 1.03311 level, where it is expected to continue its downward movement. Although the RSI indicates strengthening buying momentum, price divergence hints at a potential turnaround soon, as the MACD shows weakening volume and momentum.

USDJPY - The Japanese Yen remains under pressure due to the Bank of Japan's hesitancy to raise interest rates. Despite this, the MACD is showing increasing buying volume, though the RSI indicates overbought conditions at the 157.720 level. A potential resistance is forming, and a retracement may occur before a continuation in the bullish direction. Despite a slowdown in dollar buying, overall market momentum remains firmly bullish for the Yen, and price action suggests waiting for a breakout from the current consolidation before taking a position.

USDCHF - The Swiss Franc is currently experiencing increased buying, with price action respecting the bullish momentum. The most recent price movement suggests the end of a retracement around the 0.90743 level, where the RSI indicates oversold conditions, signaling potential bullish continuation. The MACD is also showing lessened selling volume, with a potential upward crossover in sight. Additional confirmation is needed, but the market seems poised for more upward movement.

USDCAD - The Canadian Dollar is still consolidating at the 1.44440 level, with the MACD indicating a potential buying continuation. However, recent histogram prints show waning strength, suggesting the consolidation may persist. The RSI shows a more bullish momentum, as the price remains higher than its previous low. As a result, the market will continue to be monitored, but expectations lean toward a bullish continuation in the coming days.