5 Reasons Why USD is Getting Weaker. Silver XAGUSD in Rising Wedge?

In today’s GCI Market Outlook, let’s take a look at Forex Trading on AUDCAD, AUDUSD, Gold, XAUUSD, Silver, XAGUSD, S&P500, USDCHF, and EURUSD.

Just a reminder that these videos are intended as educational, we are only observing current market conditions, and these are not to be considered as trading advice.

The EURUSD 4-hour chart tells the story with USD weakness.

We will talk about why in a minute, but we ask, will it continue?

Technically, we see the stochastic oscillator very overbought.

If you look at any USD pair chart, you will see the same weakness as the inverse on the USDCHF chart.

If we move out to the EURUSD daily, we get some important information.

Price action is at a key level, as we can see from this descending triangle earlier in the year.

The weakness can be attributed to the idea that the Fed are still considering lowering interest rates near the end of the year.

There is an outflow of USD into the stock markets now, as we spoke about in the last video, and we can see that on the daily chart of the S&P500.

The other indices show the same.

Also, bond yields are falling, which always sends currencies lower.

While the Iran war may be causing inflation, the markets and the US Federal Reserve see this as a temporary risk.

Meanwhile, any geopolitical turmoil, like Iran, Israel and Lebanon, usually drives the price of Gold higher, taking the value of USD down.

And finally, without sounding political, the markets are realising how much the current administration has added to the US debt with no end in sight.

This is never good for the value of a currency.

With no end in sight to the Iran war, gold is creeping higher.

We saw a gap to the downside after peace talks started, but investors traded the gap.

We are still far lower than the record highs, with MACD looking bullish.

Silver has followed gold higher as usual, but are we seeing a rising wedge?

Let’s keep an eye on this.

We have very little news this week, but we will keep an eye on Australian employment data

We have been watching AUD strength right across the board.

If price action on AUDUSD and AUDCAD looks familiar, it is.

AUD very often parallels gold, but keep an eye on the news on Thursday.

That’s all for now.

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