COT Market Sentiment
This week’s COT report highlights the 7 Strategic Market Signals shaping market direction. The U.S. dollar remains the dominant force as traders reduce exposure to risk-sensitive assets like AUD, NZD, and EUR. Commodity-linked currencies stay weak amid cautious sentiment, while GOLD leads the safe-haven demand. The COT data aligns with a clear confluence trading strategy in forex — where price action, momentum indicators, and RSI divergence setups confirm trend direction. Understanding these signals helps traders apply moving average and RSI combo forex strategies with stronger conviction and better timing precision.
COT Sentiment Summary:
- AUD – WEAK (4/5)
- GBP – SLIGHTLY WEAK (3/5)
- CAD – SLIGHTLY WEAK (3/5)
- EUR – SLIGHTLY WEAK (3/5)
- JPY – SLIGHTLY WEAK (3/5)
- CHF – WEAK (4/5)
USD (DXY) – STRONG (5/5) - NZD – WEAK (4/5)
- GOLD – STRONG (5/5)
- SILVER – SLIGHTLY WEAK (3/5)
Market Analysis
GOLD
Gold continues to trade below its pivot at 4028.00, reinforcing bearish sentiment. RSI momentum points downward, forming a mild RSI divergence price action setup that suggests possible further weakness toward 3964.00 and 3943.00. Only a break above 4028.00 would signal a reversal, confirming a confluence trading strategy forex traders often use. The combination of candlestick confirmation with indicators and moving average and RSI combo forex signals provides clarity for short-term positioning.
SILVER
Silver slipped 0.27% to 48.57 USD as declining momentum weighed on sentiment. The short-term chart structure hints at consolidation, with RSI flattening near neutral territory. A price action with momentum indicators approach shows that sustained support above 48.40 USD could stabilize prices. Traders using the 7 Strategic Market Signals will watch for candlestick confirmation with indicators around this level before entering new long positions.
USDDXY
The U.S. Dollar Index strengthened to 99.89, backed by safe-haven demand and higher Treasury yields. The price action reflects bullish control, a signal reinforced by moving average and RSI combo forex alignment. If DXY sustains above 99.80, traders may see extended upside momentum. Within the 7 Strategic Market Signals, the dollar’s strength continues to suppress commodities while validating the confluence trading strategy forex traders rely on for trend confirmation.
GBPUSD
GBP/USD remains capped near 1.3165, where sellers dominate. The RSI shows declining momentum, supporting short setups under the confluence trading strategy forex model. A move below 1.3115 could deepen the decline toward 1.3095. However, if RSI divergence appears alongside bullish candlestick confirmation with indicators, it might offer a counter-trend opportunity within the 7 Strategic Market Signals framework.
AUDUSD
AUD/USD gained modestly to 0.6549 USD but remains range-bound. The RSI and moving averages show a neutral tone, lacking strong momentum confirmation. Price action with momentum indicators reveals possible exhaustion unless buyers push above 0.6560. This setup fits one of the 7 Strategic Market Signals — monitoring confluence between RSI divergence and moving averages for entry precision.
NZDUSD
NZD/USD remains weak at 0.5717, mirroring AUD softness. RSI continues to drift lower, signaling bearish persistence. Traders watching the 7 Strategic Market Signals should note the alignment between price structure and RSI divergence price action setup, confirming downside bias. Only a move above 0.5735 would hint at recovery, but for now, bearish momentum prevails.
EURUSD
EUR/USD stays below its pivot at 1.1570 with strong bearish control. The RSI supports this trend, making it a clear part of the 7 Strategic Market Signals that point to sustained euro weakness. Applying a confluence trading strategy forex traders often combine moving average and RSI combo forex tools with candlestick confirmation to refine short entries near resistance.
USDJPY
USD/JPY remains bullish above 153.60, supported by firm RSI and stable moving averages. This alignment fits the 7 Strategic Market Signals theme — a textbook example of confluence. Momentum traders can monitor RSI divergence for early reversal clues, while price action with momentum indicators still favors the upside toward 154.70.
USDCHF
USD/CHF advances to 0.8068, showing strong bullish sentiment. The upward slope of the moving averages and RSI confirmation enhances confidence in the continuation setup. Traders using candlestick confirmation with indicators see the current rally as part of the 7 Strategic Market Signals, affirming dollar dominance across the board.
USDCAD
USD/CAD trades at 1.4038, up 0.20%, with bullish structure supported by RSI strength. A confluence trading strategy forex application confirms buying pressure as long as price stays above 1.4010. The setup reflects how moving average and RSI combo forex analysis can identify trend continuation signals — one of the 7 Strategic Market Signals defining this week’s sentiment.
Final Thoughts
This week’s 7 Strategic Market Signals highlight a strong U.S. dollar and subdued risk sentiment across major currencies. By combining RSI divergence price action setup, candlestick confirmation with indicators, and confluence trading strategy forex, traders can better identify high-probability setups and manage risk effectively. Momentum alignment through moving average and RSI combo forex methods provides additional confirmation to refine entries and exits.
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