Gold faced a significant decline, while the EUR/USD and Nasdaq 100 were adversely affected by a resurgence in US yields. – Free Forex News

Gold faced a significant decline, while the EUR/USD and Nasdaq 100 were adversely affected by a resurgence in US yields. – Free Forex News

Predictions for Gold, EUR/USD, and Nasdaq 100:

  • Gold experiences a retreat following its inability to maintain a brief bullish breakout on Monday.
  • The Nasdaq 100 sees a decline, influenced by the upward movement in U.S. Treasury yields.
  • EUR/USD undergoes a slide but discovers support around its 200-day simple moving average.

Early on Monday, during the Asian session, gold prices surged to a new peak, approaching $2,150. However, this bullish momentum quickly reversed into a significant sell-off as European and U.S. markets opened, likely triggered by the rebound in bond rates.

U.S. Treasury yields had been on a downward trend since late November, driven by the expectation that the Federal Reserve would decrease borrowing costs in 2024. However, at the beginning of the new week, yields rose as traders started to unwind positions speculating on extensive monetary easing, a stance that appeared incongruent with the current economic reality.

The upswing in rates bolstered the U.S. dollar, exerting downward pressure on precious metals and risk assets. Consequently, the Nasdaq 100 experienced a nearly 1% decline, though it managed to recover from its lowest levels after bouncing off support at 15,700. EUR/USD also saw a decrease but held above its 200-day simple moving average.

This article delves into the technical outlook for gold, EUR/USD, and the Nasdaq 100, considering price action dynamics and critical levels that may be significant leading up to key high-impact events in the coming days.

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Technical Analysis of Gold Prices:

Gold achieved a breakthrough of its all-time high and reached a fresh record on Monday, but the subsequent sharp decline suggests that the initial breakout might have been deceptive.

Despite the abrupt market reversal, there is a positive bias for the yellow metal, indicating that the path of least resistance continues to be upward. If prices resume their upward movement, the initial obstacle to monitor is at $2,050, followed by $2,070/$2,075. Further strength could draw attention to the $2,150 level.

On the contrary, if losses intensify in the coming days, the first line of support is identifiable around $2,010. This zone may serve as a base in the case of prolonged weakness, but a breach below it could signal a more significant retracement, with the next downside target situated at $1,990.

*Note: The provided analysis is based on technical considerations and is not indicative of future market outcomes. It’s important to incorporate various factors and risk management strategies when making financial decisions.

Gold Price Chart Created Using TradingView

Technical Analysis of Nasdaq 100:

The Nasdaq 100 experienced a substantial surge in November, registering a gain of more than 10%, marking its most significant monthly increase since July 2022. Despite this robust rally, the upward momentum has waned, leading to the tech index slipping below the 16,000 level in recent days.

While maintaining a positive outlook over a medium-term horizon, the near-term projection may turn mildly bearish if the technical support at 15,700 is breached. In such a scenario, a potential decline toward 15,500 could be anticipated. Although this zone might offer stability during a retracement, breaking below it could expose the 100-day simple moving average, situated around 15,325.

Conversely, if market sentiment shifts in favor of buyers, resistance is evident in the 16,080 to 16,200 range. Clearing this barrier might present a challenge for the bullish side, but a successful breakout could trigger substantial buying interest fueled by a Fear of Missing Out (FOMO) mentality, potentially setting the stage for a retest of the all-time high.

Nasdaq 100 Chart Created Using TradingView

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