US DOLLAR, EUR/USD, GBP/USD, NASDAQ 100, GOLD PRICE FORECAST

• The U.S. greenback slumps on falling yields following lower-than-expected U.S. inflation figures
• EUR/USD and GBP/USD get away to the topside, reaching multi-week highs
• Gold costs and the Nasdaq 100 additionally rally, flirting with key technical ranges in each circumstances

Most Learn: US Inflation Cools to three.2 % in October, US Greenback Sinks however Gold Positive factors

U.S. Treasury yields plummeted on Tuesday after weaker-than-expected U.S. shopper value index knowledge lowered the chance of extra central financial institution tightening and weakened the case for conserving rates of interest at elevated ranges for an prolonged interval.

The transfer within the fixed-income house despatched the broader U.S. greenback reeling, with the DXY index plunging greater than 1.5%, its worst each day efficiency since November 2022. In opposition to this backdrop, the euro and British pound broke out to the topside, hitting multi-week highs towards the dollar.

Gold costs additionally posted strong positive factors and managed to consolidate decisively above the 200-day easy shifting common, a bullish technical sign. For its half, the Nasdaq 100 catapulted to its greatest ranges in virtually 4 months, coming inside a hair’s breadth of reclaiming its 2023 peak.

With merchants declaring victory within the combat towards inflation and already pricing in aggressive fee cuts for 2024, current market strikes might acquire traction and consolidate within the close to time period. This might imply extra draw back for yields and the U.S. greenback, together with extra positive factors for valuable metals and shares.

This piece scrutinizes EUR/USD, GBP/USD, the Nasdaq 100, and gold costs from a technical perspective. We delve into important value ranges that require consideration following Tuesday’s noteworthy strikes throughout key property.

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EUR/USD TECHNICAL ANALYSIS

EUR/USD soared on Tuesday, taking out Fibonacci resistance and the 200-day easy shifting common. With momentum on its aspect and a constructive shift in sentiment, the pair might lengthen its upward trajectory within the days forward, with a possible goal at 1.0960, the 61.8% Fib retracement of the July/October selloff.

Within the case the place EUR/USD fails to carry onto positive factors and sellers regain dominance, the primary technical assist to watch seems across the 1.0840 mark, adopted by the psychological 1.0800 deal with. Continued weak point will increase the danger of revisiting the 1.0650 space.

EUR/USD TECHNICAL CHART

EUR/USD Chart Created Utilizing TradingView

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GBP/USD TECHNICAL ANALYSIS

GBP/USD additionally blasted larger on Tuesday, surging previous its 200-day easy shifting common and breaching the 38.2% Fib retracement of the July/October stoop. If this bullish breakout is sustained within the coming buying and selling periods, consumers could possibly be emboldened to launch an assault on 1.2591 (50% Fib retracement).

Conversely, if upward impetus fades and sentiment shifts in favor of sellers, preliminary assist is recognized between 1.2460 and 1.2450. Sustaining costs above this ground is important to instill confidence within the bullish outlook; a failure to take action would possibly set off a retreat in direction of 1.2320 and 1.2200 thereafter.

GBP/USD TECHNICAL CHART

GBP/USD Chart Created Utilizing TradingView

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NASDAQ 100 TECHNICAL ANALYSIS

The Nasdaq 100 rallied greater than 2.2% on Tuesday on the again of falling U.S. yields following weaker-than-expected U.S. CPI numbers. With merchants already discounting a dovish pivot on the Fed, sentiment might stay constructive, creating the correct circumstances for fairness market energy.

By way of key technical thresholds, the primary resistance to look at corresponds to the July highs close to the 16,067 degree. On additional energy, the main focus shifts to final yr’s peak. If a bearish reversal unfolds, preliminary assist is positioned at 15,720, adopted by 15,500/15,400.

NASDAQ 100 TECHNICAL CHART

Nasdaq 100 Chart Created Utilizing TradingView

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GOLD PRICE TECHNICAL ANALYSIS

After a number of days of softness, gold executed a bullish reversal on Tuesday, bouncing off cluster assist at $1,940/$$1,950. Ought to costs efficiently construct on this upward momentum, preliminary resistance lies at $1,975/$1,980. Upside clearance of this ceiling might open the door for a rally in direction of $2,010/$2,015.

Conversely, within the occasion of sellers regaining management of the market, major assist stretches from $1,950 to $1,940. Though gold might set up a base on this vary throughout a retracement, a breakdown might set the stage for a drop towards $1,920, adopted by $1,900.

GOLD PRICE CHART (FUTURES CONTRACTS)

Gold Value Chart Created Utilizing TradingView