Market Overview
The latest technical picture suggests the first signs of a shift from the broad U.S. dollar rally and risk-off environment that has dominated recent sessions.
While the daily charts continue to favor the U.S. dollar, shorter-term timeframes are now generating strong buy signals for:
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Euro
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British Pound
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Australian Dollar
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New Zealand Dollar
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Gold
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Silver
This indicates that risk assets are beginning to stage a technical rebound.
Meanwhile:
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USD/JPY
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USD/CHF
continue to post Strong Buy signals on the daily charts, suggesting that the broader medium-term dollar uptrend remains intact.
In other words, the current market is best characterized as:
A short-term recovery in risk assets within an ongoing medium-term U.S. dollar bull trend.
Strongest Currency
USD/JPY
161.60
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Short-term: Sell bias
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Daily: Strong Buy
The pair is experiencing a healthy short-term correction while maintaining its broader bullish trend.
USD/CHF
0.8082
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Short-term: Strong Sell
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Daily: Strong Buy
The longer-term dollar uptrend remains intact, but short-term profit-taking is beginning to emerge.
Euro
EUR/USD
1.1404
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Short-term: Strong Buy
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Daily: Strong Sell
EUR/USD is rebounding from oversold conditions.
The short-term outlook favors further recovery, while the medium- and long-term trend still supports selling into rallies.
EUR/JPY
184.30
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Strong Buy through the hourly timeframe
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Daily: Strong Sell
The rebound has also spread to the yen crosses.
British Pound
GBP/USD
1.3219
Strong Buy signals are present from the short-term through the hourly charts.
The daily trend, however, remains bearish.
Like the euro, sterling is experiencing a sharp short-covering rally.
Australian Dollar & New Zealand Dollar
AUD/USD
0.6902
NZD/USD
0.5654
Both currencies have generated strong short-term buy signals.
However, their daily charts remain firmly bearish.
The current move appears to be a classic short-covering rally rather than the beginning of a new uptrend.
Yen Crosses
Strong Short-Term Buy Signals
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EUR/JPY
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GBP/JPY
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NZD/JPY
Short-term price action favors renewed yen weakness.
However, many daily charts continue to display bearish signals, meaning the sustainability of this rebound will largely depend on the next move in USD/JPY.
Gold
Gold (XAU/USD)
$4,066
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Strong Buy from short-term through hourly charts
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Daily: Strong Sell
Gold is rebounding following a sharp decline.
At this stage, the move appears to be a corrective rally rather than a confirmed trend reversal.
Silver
Silver (XAG/USD)
$58
Silver is following a similar pattern to gold.
Short-term momentum has improved, but the daily trend remains bearish.
Bitcoin
Bitcoin (BTC/USD)
$59,755
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Strong Sell across all timeframes
Unlike other risk assets, cryptocurrencies have failed to participate in the broader rebound.
Bitcoin remains one of the weakest markets.
Crude Oil
WTI Crude Oil
$69.41
Short-term signals are mixed.
However, the hourly and daily charts continue to point to a strong bearish trend.
The broader downtrend remains intact.
Natural Gas
Natural Gas
3.333
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Strong Buy across all timeframes
Natural gas once again stands out as one of the strongest-performing commodities.
Equity Markets
U.S. Equities
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Dow Jones: Short-term Sell / Daily Buy
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S&P 500: Strong Sell through the hourly chart
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NASDAQ 100: Neutral
U.S. equities remain in a corrective phase.
European Equities
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DAX: Strong Sell (short-term)
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FTSE 100: Short-term Sell / Daily Buy
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CAC 40: Short-term Sell / Daily Buy
European markets have also entered a period of short-term consolidation.
Nikkei 225
69,408
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Short-term: Buy
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Hourly: Sell
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Daily: Buy
Momentum has become mixed, but the broader uptrend remains intact.
Strength Ranking
S-Tier
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Natural Gas
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USD/JPY (Daily)
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USD/CHF (Daily)
A-Tier
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EUR/USD (Short-term)
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GBP/USD (Short-term)
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Gold (Short-term)
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Silver (Short-term)
Weakness Ranking
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Bitcoin
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Crude Oil
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S&P 500
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DAX
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EUR/USD (Daily)
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AUD/USD (Daily)
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NZD/USD (Daily)
Current Market Theme
Assets Being Bought
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Natural Gas
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Gold (Short-term)
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Silver (Short-term)
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Euro (Short-term)
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British Pound (Short-term)
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Australian Dollar (Short-term)
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New Zealand Dollar (Short-term)
Assets Being Sold
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Bitcoin
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Crude Oil
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U.S. Equities
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European Equities (Short-term)
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U.S. Dollar (Short-term correction, while the daily trend remains bullish)
Trading Perspective
Short-Term Opportunities
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Long EUR/USD
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Long GBP/USD
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Long AUD/USD
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Long NZD/USD
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Long Gold
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Long Silver
Medium-Term Trend Trades
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Buy USD/JPY on pullbacks
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Buy USD/CHF on pullbacks
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Sell Crude Oil into rallies
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Sell Bitcoin into rallies
Conclusion
The latest technical picture indicates that the Dollar-Dominance / Risk-Off environment is beginning to experience a short-term reversal.
Strong buy signals have emerged across the euro, sterling, Australian dollar, New Zealand dollar, gold, and silver, pointing to a temporary return of risk appetite.
However, the daily charts continue to favor a stronger U.S. dollar and weaker risk assets.
For now, this should be viewed as a corrective rebound rather than a confirmed trend reversal.
The key question going forward is whether this recovery can expand into the daily timeframe or whether the broader dollar uptrend will soon reassert itself.
