EUR/USD Current price: 1.0920 Market participants keep buying the US Dollar ahead of key employment and growth figures. The German Unemployment Rate was confirmed at 5.9% in December. EUR/USD trades near the 1.0900 level and aims to break below it. The EUR/USD pair stayed on the back foot throughout the first half of Wednesday, although the slide was moderated. The pair bottomed at 1.0915  during European trading hours and maintains the sour tone heading into Wall Street's opening, as investors are cautiously awaiting first-tier figures. So far, the macroeconomic calendar offered the December German Unemployment Rate, which was confirmed at 5.9%, unchanged from the previous month. Additionally, the United States (US) published MBA Mortgage Applications for the week ended December 29, which plunged 10.7%. However, the decline is irrelevant, considering it occurred during the winter holidays. After the American opening, the focus will be on the US ISM Manufacturing PMI, foreseen in December at 47.1, improving from 46.7 in November but still within contraction levels. At the same time, the country will release November JOLTS Job Openings, relevant ahead of the Nonfarm Payrolls (NFP) report on Friday. Finally, in the US afternoon, the focus will shift to the Federal Open Market Committee (FOMC) Minutes, which can provide clues on upcoming rate cuts. EUR/USD short-term technical outlook The EUR/USD pair bounced modestly from the aforementioned intraday low, but trades in the red. Technical readings in the daily chart suggest the decline may continue as indicators extend their slides, currently heading lower within neutral levels. At the same time, the pair is battling around a still bullish 20 Simple Moving Average (SMA), while the longer ones remain directionless far below the current level. The near-term picture indicates that the risk skews to the downside. In the 4-hour chart, EUR/USD found near-term buyers around a directionless 200 SMA, but develops below the 20 and 100 SMAs, with the shorter one gaining downward momentum. Finally, technical indicators remain within negative levels, with the Relative Strength Index (RSI) indicator maintaining its bearish slope at around 27, without signs of exhaustion. Support levels: 1.0910 1.0880 1.0845   Resistance levels: 1.0950 1.0990 1.1025

EUR/USD stabilized above 1.0950 following Tuesday's sharp decline. Near-term technical outlook suggests that the pair remains bearish. US economic docket will feature key data releases on Wednesday. EUR/USD declined sharply on Tuesday and touched its lowest level in nearly two weeks at 1.0938 as the US Dollar (USD) staged a decisive correction following the poor performance seen in the last couple of weeks of 2023. Early Wednesday, the pair holds steady at around 1.0950. In the absence of high-tier data releases, the USD benefited from souring market mood and the steady recovery seen in the US Treasury bond yields on Tuesday. The US Dollar Index, which lost about 2% in December, gained nearly 1% on the first trading day of 2024. In the second half of the day, the US economic docket will feature the ISM Manufacturing PMI data for December and JOLTS Job Openings report for November. Investors expect the ISM Manufacturing PMI to edge higher to 47.1 from 46.7 in November. A reading above 50 could provide a boost to the USD with the immediate reaction. On the other hand, a noticeable decline in the number of job openings could hurt the USD.  Later in the American session, the Federal Reserve (Fed) will release the minutes of the December policy meeting. In the post-meeting press conference, Fed Chairman Jerome Powell said that policymakers were thinking and talking about when it will be appropriate to cut rates. In case the publication confirms that officials discussed the timing of a policy pivot, the USD could find it difficult to stay resilient against its rivals. According to the CME Group FedWatch Tool, markets are currently pricing in a 25% probability that the Fed will leave the policy rate unchanged in March. EUR/USD Technical Analysis The Relative Strength Index on the 4-hour chart rose slightly above 30 after falling below that level on Tuesday, suggesting that the bearish bias remains intact following a technical correction. Additionally, the 20-period Simple Moving Average (SMA) is about to make a bearish cross with the 50-period SMA on the same chart, highlighting a buildup of bearish pressure.  On the downside, 1.0950 (Fibonacci 23.6% retracement of the latest uptrend) aligns as immediate support. The 100-period SMA reinforces this level as well. If EUR/USD falls below 1.0950 and starts using that level as resistance, sellers could remain interested. In this scenario, 1.0920 (200-period SMA), 1.0900 (psychological level, static level, lower limit of the ascending regression trend channel) and 1.0850 (Fibonacci 38.2% retracement) could be seen as next supports. On the upside, resistances are located at 1.1000 (psychological level, static level), 1.1025 (20-period SMA, 50-period SMA, mid-point of the ascending channel) and 1.1100 (psychological level, static level).

Good Morning! Dollar Index is rising as expected and could test 102.50 while Euro could fall to 1.0950-1.09. EURJPY looks bearish towards 155/154 while USDJPY has risen back and could test 143 now, contrary to our expectations of seeing a fall towards 140-138. USDCNY is rising towards our mentioned targets of 7.15/16. Aussie is headed towards 0.6750/0.67 while Pound is near its immediate support of 1.26 which needs to produce a bounce else could be vulnerable to fall towards 1.24. USDRUB rose sharply yesterday but seems to be falling from 91 now. USDINR rose slightly past our expected resistance of 83.30 but later it eventually came down. The 83.35-83.20 range could hold for the day. EURINR has risen above 91 and could test 91.50 soon before pausing. The US Treasury and the German yields are witnessing a corrective rise in line with our expectation. Both the yields can rise further from here in the coming days. The 10Yr GoI can move up to test its resistance before turning down again to resume the downtrend. The 5Yr GoI on the other hand is stuck in a narrow range within its broader downtrend. Dow Jones has scope to test its immediate resistance before a corrective fall can happen. DAX was volatile yesterday but as long as it holds above 16500, our bullish view will remain intact. Nifty has to sustain above 21500 to move up towards its resistance. Shanghai has declined failing to rise past 2975 but 2925 could lend some support and keep our view intact for a rise towards its resistance. Crude prices have fallen back sharply after disappointing US S&P manufacturing PMI for Dec-23. Gold and Silver have scope to test their key immediate support before a bounce back can happen. Copper is approaching 3.85. Failure to hold above 3.85 can drag Copper further down. Natural Gas has fallen back but downside could be limited to 2.50-2.45. Visit KSHITIJ official site to download the full analysis

The Federal Reserve's meeting minutes from the dovish December decision are of high interest early in 2024. Officials may wish to emphasize hawkish messages after markets ran with the Fed's dovish message of upcoming rate cuts. Any US Dollar strength or stock retreat may prove short-lived in the current festive mood. It is still cold out there – that will likely be the Federal Reserve (Fed) message as 2024 kicks off and the festive lights are removed from the streets. Nevertheless, any chill coming from the world's most powerful central bank will likely be short-lived.  Here is a preview for the Federal Open Market Committee (FOMC) Meeting Minutes, due on Wednesday, at 19:00 GMT. Markets got carried away by dovish pivot Three rate cuts in 2024 – that was the message from the Federal Reserve's "dot plot" on December 13. Chair Jerome Powell and his colleagues left rates unchanged and signaled more decreases in borrowing costs than previously anticipated. By slashing rate forecasts rather than increasing them, the Fed marked a turnaround in policy and signaled a victory over inflation.  Markets loved it – but perhaps too much –, pricing four to five cuts in 2024, with the first one coming in March. Bond yields have cratered, stocks have surged, and the Greenback is in the red. Investors tend to shoot first and think later, and may have gone too far. Interest-rate cuts are coming in March, according to bond markets. Source: CME Group FedWatch Tool Fed officials would not like the fall in long-term borrowing costs to come so strong and so fast – it could encourage lending instead of saving, risking the achievements in depressing inflation. That is where the Meeting Minutes come in handy. Fed uses minutes to convey messages The protocols are set to document what was said in the two-day meeting where members put their forecasts. At that time, policymakers were influenced by the Consumer Price Index (CPI) data (published on the first day of their deliberations) and the Producer Price Index (PPI), which was released just before Powell took the stage. But not all members of the Fed's board are fully aligned. As the Meeting Minutes are revised until the very last moment, editors will likely emphasize messages officials want to convey – hold your horses. I expect the report to highlight hawkish members' desire for caution before cutting rates and a commitment to refraining from cuts until they are sure such moves are essential.  Such a hawkish highlight would boost the US Dollar and chill down stock investors' spines. It would also cool Gold. However, I do not expect that effect to last for too long. First, the trend is strong – there is considerable optimism about a soft-landing scenario in which inflation completely disappears without a recession.  Second, markets take the Fed's forecasts with a grain of salt. The bank was late to acknowledge that inflation is not transitory, and may be also late to accept that it has done enough or perhaps too much.  Third– and this relates to the first point – the Fed stresses it is data-dependent. Unless fresh figures have an inflationary bent, there is no reason to be scared of hawkish tones.  Final thoughts I expect the Federal Reserve to release relatively hawkish meeting minutes, triggering a "risk off" market move. However, I do not expect it to last for too long. 

Gold price rebounds, as the US Dollar eases early Wednesday.   The US Treasury bond yields pause its uptrend amid souring sentiment. Gold price remains on track to test $2,100 but acceptance above $2,085 holds the key. Gold price is attempting a bounce above $2,060 early Wednesday, replicating the move seen in Asia on Tuesday, The US Dollar (USD) is unable to hold its previous uptick even though markets appear risk averse. All eyes on the Federal Reserve Minutes and US jobs data Amidst ongoing geopolitical conflict in the Middle East and simmering tensions between China and Taiwan, risk sentiment remains in a weak spot in Asian trading on Wednesday, allowing the traditional safe-haven, Gold price, to stage a modest rebound from near $2,060 region. Investors also stay cautious, as they keenly await the Minutes of the US Federal Reserve's (Fed) December meeting and the JOLTS Job Openings data, which could throw fresh light on the prospects of interest rate cuts later this year. Tsunami warnings and multiple high-magnitude earthquakes in Japan also keep investors on edge, although the natural disaster has had limited market impact so far. Despite the souring sentiment, the US Dollar is pulling back from multi-day highs, tracking the sluggish performance in the US Treasury bond yields, as aggressive US interest rate cuts seem to have ebbed ahead of the release of Fed minutes and jobs data. Gold price started off 2024 on the right footing and tested the $2,080 barrier in the first half of Tuesday's trading before reversing sharply to settle below $2,060 amid a solid US Dollar uptick. Markets resorted to repositioning ahead of the critical US employment data and the Fed Minutes, fuelling a fresh uptrend in the US Dollar alongside the US Treasury bond yields. Gold price technical analysis: Daily chart The near-term technical outlook for Gold price remains more or less the same, as the rising trendline resistance, now at $2,100, remains a tough nut to crack for Gold price. Ahead of that level, Gold buyers continue to run into offers near the $2,085 zone, making it a stiff resistance. If Gold price manages to find a strong foothold above these resistance levels, the all-time high of $2,144 will be next on their radar. The 14-day Relative Strength Index (RSI) indicator looks north above the midline, suggesting that the upside potential remains intact.   Adding credence to the bullish outlook, the 100-day Simple Moving Average (SMA) is on the verge of cutting the 200-day SMA from below, portraying an impending Bull Cross. On the downside, the iinitial support is seen at Friday's low of $2,058, below which the $2,050 round figure could be probed. The last line of defense for Gold buyers is aligned at the 21-day Simple Moving Average (SMA) at $2,038.

Markets U.S. stocks slid on the first significant trading day of the new year, signalling a downbeat start to 2024 after a winning year that left the S&P 500 shy of a new record high. The recent rally in stocks stalled on Friday, following two months of gains that contributed to gangbuster performance in the key U.S. benchmarks. The S&P 500, in particular, notched its ninth consecutive weekly win, marking the longest streak since 2004, and is approaching its all-time closing high of 4,796.56. Tech stocks declined after Barclays analysts downgraded their rating on Apple's stock, expressing concerns about demand for new iPhones. This downgrade contributed to a 1.7% fall in Apple shares as tech stocks slid. Economic updates expected later in the week, mainly the December jobs report due on Friday, could further challenge the ongoing rally. Investors are closely watching the report for its potential to influence the Federal Reserve's reaction function. The prevailing bets on fast and furious interest rate cuts in 2024 have been a critical factor buoying stocks in recent weeks. Tech stocks, with their rich valuations, are susceptible to the slightest economic wobble or shift higher in yields, and it's not like everyone was participating in this narrow market high driven by A.I. hype.  Unfortunately for Tech bulls, both 10-year yields are higher, and global economic data paints an even less favourable picture. While one might expect Treasury yields to fall in response to negative growth surprises, the opposite has happened since last week's dismal 7-year US auction, suggesting that not only are rate-cut bets waning, but bond markets are starting to add back some term premium as Treasury supply concerns loom. Indeed, it is not the best setup for growth stocks to start the year. In this narrowly focused rally, investors should be less concerned about whether the U.S. enters a recession or if inflation and interest rates deviate slightly from expectations. The critical consideration is the potential bursting of the Technology market cap bubble and its capacity to trigger a broader slump in the global market. But of course, if a recession does hit, and by all accounts of the most recent round of global PMI data, productivity is not in a great spot; richly valued equities (like Mega Cap Tech) would experience a significant de-rating if long-term growth expectations continue to decline. While this risk is easily identifiable, as evident in the data, it is crucial to acknowledge that significant sell-offs are often triggered by risks that go unnoticed. Suppose one aims to craft an out-of-consensus macroeconomic storyline for the United States in 2024; how about a hard landing, with a massive shot of deflation imported from China, turning the everything rally into the everything crash?  U.S. rates are lower because of the Fed, not the data; therefore, the focus remains on monitoring upcoming data. In this regard, a crucial reading on the labour market is imminent, as December's payroll report is scheduled for release on Friday. The fear is that markets may foretell any weakness in the data, especially around U.S. employment metrics, as a harbinger of a hard landing. Oil markets Geopolitical risk, often a key factor influencing oil prices recently, initially supported price action overnight. However, geopolitical risk is akin to "headline risk," as the recent market activity demonstrates. Oil prices initially rose after Iranian state media reported that Tehran had deployed a warship to the Red Sea, but later fell when reality set in.  In a more symbolic move to annoy the U.S. and its Western allies rather than a strategic military escalation, Iran dispatched a 51-year-old frigate to monitor Red Sea shipping lanes. The situation reflects a pattern of Iranian propaganda that lacks sophistication, cunning, or polish. While geopolitical headlines can temporarily support oil prices, the broader market context, including dismal economic data in China and Europe to start the year and diminishing optimism about U.S. rate cuts, exerted downward pressure during the busy New York session. Coupled with a strengthening U.S. dollar, it contributed to the negative trajectory of oil prices into the Asia session as traders remained on headline watch.  Forex market The recent dovish adjustment in Fed rate cut expectations establishes a higher threshold for additional weakness in the U.S. dollar to start the year. To sustain expectations for the Fed to initiate rate cuts as early as March, market participants will likely require a weak U.S. Payroll print but, as importantly, the continued ebbing of U.S. inflation metrics. The critical question for dollar bears is how the gap between market-based rate cut expectations and the Fed's projections will be reconciled. ( 150bp vs 75 bp).

AUD/USD Current Price: 0.6763 Growth-related figures showed major economies are still struggling to recover. The US Dollar advanced throughout the second half of the day amid a souring market mood. AUD/USD maintains the bearish tone ahead of the Asian opening, support at 0.6730. The AUD/USD pair pierced the 0.6800 threshold on Tuesday, heading into the new day trading in the 0.6770 price zone. The US Dollar lost some ground at the beginning of the day but changed course during European trading hours, preserving its strength through the American session, as Wall Street traded with a soft tone while government bonds also lost ground. Growth-related data released these days indicated major economies are still struggling to recover. China released the December NBS Manufacturing PMI on Sunday, which unexpectedly contracted to 49. At the same time, the NBS Non-Manufacturing PMI printed at 50.4, improving from 50.2 in November but missing expectations of 50.5. Meanwhile, similar data from Europe and America was released throughout the day, cooling expectations for soon-to-come rate cuts among major economies. There are no macroeconomic figures scheduled for the upcoming Asian session, focusing on US data, as the country will publish the December ISM Manufacturing PMI, November JOLTS Job Openings and the FOMC Meeting Minutes. AUD/USD short-term technical outlook From a technical point of view, AUD/USD is in a corrective slide. The daily chart shows technical indicators retreating from overbought levels, maintaining their downward slopes within positive levels. At the same time, a firmly bullish 20 Simple Moving Average (SMA) heads firmly north above the longer ones, providing dynamic support at around 0.6700. In the near term, and according to the 4-hour chart, the risk skews to the downside. AUD/USD gained downward traction after failing to recover above a now bearish 20 SMA. The 100 and 200 SMAs keep heading higher, well below the current level, although technical indicators head south well below their midlines. Further slides could be expected on a break through 0.6730, the immediate support level. Support levels: 0.6730 0.6995 0.6960 Resistance levels: 0.6810 0.6845 0.6870

An exceptional end to the year has left markets with a lot to live up to in 2024, with huge rate cuts and a soft landing now among the things investors have priced in. The fantasy scenario for central bankers across the globe over the last couple of years is now a very real possibility but it's also far from guaranteed, despite how markets are now positioned. With so much now to live up to, investors may start asking themselves whether evaluations have become a little stretched. Everyone will naturally look to read too much into the first trading session of the year, even the week as a whole, but after an unusually strong end to the year that's probably not the best idea. If markets slightly pare gains in the first quarter I don't think that necessarily spells trouble for the year, especially if we see a couple of hiccups in the data. We've been spoiled over the last couple of months and while that may continue and see investors price in even more rate cuts this year on the belief central banks have overdone it, it may also not be so kind. The first test of the new year is the jobs report on Friday and it will be interesting to see how traders respond if we're given another promising batch of data. Oil prices ease as focus switches to demand Oil prices have edged lower again today but sit roughly in the middle of the range they traded within in December. Of course, that was quite a wide range given all the volatility around interest rate expectations, the economy, and the OPEC+ decision (and the eventual exit of Angola from the cartel). Focus will now shift back to the demand side and whether central banks can deliver the soft landing they've aimed for while hiking interest rates aggressively. Any outperformance for the global economy would ease the burden on OPEC+ at a time when compliance with quotas looks like it's going to be a struggle. Could interest rate expectations give gold another boost? Gold is hovering around the previous record highs before the price briefly surged in early December in light trade. The second half of last month was very promising on the back of lower interest rate expectations and favorable economic data. Traders may now be wondering whether investors have got carried away or if what now appears aggressive proves to be quite the opposite. Inflation accelerated higher much faster than anyone expected and it could well overshoot on the way down too, forcing central banks to cut rates much faster than currently expected. A new record high on the cards for bitcoin this year? It's been a decent start to the year for bitcoin, up more than 6% over the first couple of days already to trade at a 9-month high, above $45,000. The crypto community will likely feel there's a lot to look forward to this year, not to mention much less controversy than in 2023. If the first two days of the year is anything to go by, it may not be long until people are debating about record highs and beyond.

EUR/USD Current price: 1.0955 EU manufacturing output remained in contraction territory at the end of 2023. The focus this week falls on European inflation and American employment figures. EUR/USD reaches oversold conditions in the near term, maintains the bearish tone. The EUR/USD pair keeps retreating from the December peak at 1.1139, accelerating its slide through the 1.1000 threshold ahead of the United States (US) opening. The US Dollar gathers momentum in thin market conditions as market players return to their desks ahead of first-tier data that could set the tone for the rest of the month. On the one hand, the Eurozone will release inflation updates, while on the other, the US will unveil employment-related figures ahead of the December Nonfarm Payrolls report (NFP), scheduled for next Friday. Meanwhile, the macroeconomic calendar showed that "the Eurozone manufacturing sector remained stuck in contraction at the end of 2023, with output continuing to fall and factory job losses extending into a seventh successive month," according to the S&P Global/Hamburg Commercial Bank monthly report. The December Manufacturing PMI was confirmed at 44.4, slightly better than the previous 44.2. The German index was reported at 43.3. The American session will bring the US figure, which is expected to print at 48.2. EUR/USD short-term technical outlook The EUR/USD pair trades in the 1.0950 price zone and is at its lowest in almost two weeks. The daily chart shows prevalent selling interest, although the case for a continued slump is still unclear. Despite falling for a third consecutive day, the pair holds well above all its moving averages, with the 20 Simple Moving Average  (SMA) heading sharply north above the longer ones while providing dynamic support at 1.0925. At the same time, technical indicators turned south, but correcting overbought conditions and still developing within positive levels. The near-term picture favors a continued slide. In the 4-hour chart, technical indicators head lower almost vertically, currently approaching oversold territory. Meanwhile, EUR/USD accelerated its slump below a mildly bearish 20 SMA, while a still bullish 100 SMA stands in the 1.0920 price zone, reinforcing the support area. Support levels: 1.0925 1.0880 1.0845   Resistance levels: 1.0990 1.1015 1.1050

EUR/USD fluctuates below 1.1050 on the first trading day of 2024. The near-term technical outlook points to a build-up of bearish momentum. The economic calendar will offer several high-tier data releases this week. EUR/USD stays on the back foot and trades modestly lower on the day below 1.1050 in the first European session of 2024. The near-term technical outlook suggests that the pair could extend its downward correction. Investors, however, could refrain from taking large positions ahead of this week's important macroeconomic data releases. EUR/USD rose more than 1% in December and registered gains for the second consecutive month as the US Dollar (USD) struggled to find demand, with investors anticipating a Federal Reserve (Fed) rate cut as early as March. On the other hand, European Central Bank (ECB) policymakers made it clear that it was too early for them to think about a policy pivot. Later in the session, S&P Global will release revisions to December Manufacturing PMI for Germany, the Euro area and the US.  On Wednesday, ISM Manufacturing PMI and JOLTS Job Openings data will be featured in the US economic docket. Later in the day, the Fed will release the minutes of the December policy meeting. Inflation data from Germany and the Eurozone and the US jobs report could trigger big reactions in EUR/USD in the second half of the week. EUR/USD Technical Analysis EUR/USD stays below the mid-point of the ascending regression trend channel, currently located near 1.1050. Additionally, the Relative Strength Index (RSI) indicator on the 4-hour chart declined below 50, reflecting a lack of buyer interest. In case 1.1050 stays intact as resistance, EUR/USD could stretch lower toward 1.1000 (psychological level, static level) and 1.0950 (Fibonacci 23.6% retracement of the latest uptrend). On the upside, 1.1070 (20-period Simple Moving Average) aligns as interim resistance before 1.1100 (psychological level, static level) and 1.1140 (December 28 high).

Gold price kicks off 2024 in the green after booking the best year in three in 2023. The US Dollar tracks the US Treasury bond yields higher, as the mood remains mixed. Gold price looks to take out $2,100 as the daily technical setup remains in favor of buyers. Gold price has started off the first trading day of 2024 on the front foot, having eked out a 14% annual gain in 2023. Gold price is finding fresh demand early Tuesday, despite an uptick in the US Dollar (USD) and the US Treasury bond yields.   Gold price looks to top-tier US jobs data for fresh impetus Lingering Middle-East geopolitical risks keep investors on the edge starting out a new year, keeping the sentiment around the traditional safe-haven Gold underpinned. Citing accounts by American, Maersk, and Houthi officials, Reuters reported on Tuesday that US helicopters repelled an attack on Sunday by Iran-backed Houthi militants on a Maersk container vessel in the Red Sea, sinking three Houthi ships and killing 10 militants. Markets remain wary that this strife combined with the ongoing Israel-Gaza conflict could translate into a wider regional discord, scurrying for safety in havens such as Gold, the US Dollar, etc. Meanwhile, the US Dollar is also drawing support from an extended recovery in the US Treasury bond yields, as investors' focus now shifts toward the top-tier US economic data releases this week to revertebrate interest rate cut expectations from the US Federal Reserve (Fed) for this year. Markets are pricing in a 72% chance of a March Fed rate cut while for the May meeting stands at 84%. Further, the latest factory data from China suggested a fragile recovery, which could potentially hinder the region's broader revival in demand. The data failed to inspire risk sentiment, keeping the Gold price afloat. China's manufacturing activity shrank for a third straight month in December and weakened more than expected, the official data published by China's National Bureau of Statistics (NBS) showed Sunday. On Tuesday, China's Caixin Manufacturing PMI showed a modest improvement to 50.8 in December. Looking ahead, the final manufacturing PMI data from Europe and the US will fill in a relatively quiet economic calendar at the onset of 2024, with all eyes glued to the key US jobs data due to be released all through this week. Wednesday will see the JOLTs Job Openings data while the ADP employment change and the Nonfarm Payrolls report will be published on Thursday and Friday respectively. Wednesday's Minutes of the Fed's December meeting will be also closely scrutinized for fresh insights on the central bank's interest rates outlook this year. Gold price technical analysis: Daily chart As observed on the daily chart, the rising trendline resistance, now at $2,090, will remain a tough nut to crack for Gold price on its renewed upside. Acceptance above the latter on a daily candlestick closing basis will challenge the $2,100 barrier. The next target for Gold buyers is envisioned at the all-time high of $2,144 should the uptrend sustain. The 14-day Relative Strength Index (RSI) indicator has picked up its upside traction while above the midline, pointing to more gains ahead. Adding credence to the bullish outlook, the 100-day Simple Moving Average (SMA) is on the verge of cutting the 200-day SMA from below, portraying an impending Bull Cross. However, if Gold sellers fight back control, the initial support is seen at Friday's low of $2,058, below which the $2,050 round figure could be probed. The last line of defense for Gold buyers is aligned at the 21-day Simple Moving Average (SMA) at $2,037.

EUR/USD broke above vital 1.1055 and 1.1057 to trade 1.1139 and just prior to the 5 year average at 1.1159. EUR/USD then traded lows to 1.1033. EUR/USD remains overbought from lower averages and despite overbought, EUR/USD cross pairs across the board trade deeply oversold. Oversold cross pairs applies to EUR/JPY, EUR/CHF, EUR/NZD, EUR/AUD. For the week, EUR/USD targets 1.0980 on a break of 1.1007. The target at 1.0980 trades just before big lines at 1.0953 and 1.0931. For January, shorts are located at any price around the 5 year average at 1.1159. EUR/USD line up as follows: 1.0899, 1.0891, 1.1061, 1.1159, 1.1275, 1.1522. Similiar to EUR/USD, GBP/USD traded to the 5 year average at 1.2832 then reversed. GBP/USD trades overbought while GBP cross pairs begin the week oversold. Oversold GBP cross pairs include GBP/CHF, GBP/JPY, GBP/NZD, GBP/AUD. GBP/USD's lower target is located just prior to 1.2653 on a break at 1.2710. GBP/USD's big lines below at 1.2500's are many and solid nor expected to break anytime soon. GBP/USD current range trades from 1.2584, 1.2596, 1.2785, 1.2832, 1.3154, 1.3557. EUR/USD and GBP/USD trade dead center to historic ranges yet overbought. Both overbought EUR/USD and GBP/USD trade contradictionary to oversold cross pairs. A lower EUR/USD and GBP/USD would create a powerful position to align cross pairs for longs to GBP and EUR across the board. USD/JPY and JPY cross pairs remains the big profit trades for 2024 and the same situation  as 2023. Preference for USD/JPY and JPY cross pairs is due to ability to trade freely in wide ranges as JPY averages trade far and wide. USD/JPY and JPY cross trade deeply oversold. USD/JPY targets middle 143.00's. Overall, USD/JPY's 144.00 line is falling against current prices. Long term targets hold as posted December 10th. USD/JPY : 146.07, 138.01, 133.26, 129.72. GBP/JPY: 181.06, 172.87, 168.89, 167.40. EUR/JPY: 157.78, 150.05, 145.89, 143.39. CAD/JPY: 107.74, 102.97, 100.21, 98.59. CHF/JPY: 164.20, 153.01, 146.39, 141.63. AUD/JPY: 95.49, 92.22, 90.78, 89.91. NZD/JPY: 88.58, 85.51, 83.98, 82.83. AUD/USD remains overbought and trades from 0.6651, 0.6780, 0.6952 and the 5 year average at 0.6994. AUD/USD requires a break at 0.6780 to target lower prices. NZD/USD lower must break 0.6281 to trade the range from 0.6281 to 0.6162. EUR/AUD and GBP/AUD EUR/AUD trades massive oversold and sits just above vital averages at 1.6081, 1.5972 at the 5 year average and 1.5935. A break of current averages is not expected and long targets are located at middle 1.6300's. GBP/AUD also trades deeply oversold from current range 1.8414 and 1.8579 to 1.8945. Good target at 1.8000's is easily achievable on a break of 1.8760. Long is the onlt available strategy for EUR/AUD and GBP/AUD. USD/CHF and CHF cross pairs all trade deeply oversold. DXY is the exclusive driver to currency markets as DXY dropped 700 pips in the past 3 months. DXY recovery higher contains vital averages at 101.00's and every 100 pips. Same DXY story as we've seen in the past year as averages build every 100 pips on the up and downside price moves. USD/CAD trades oversold and the 5 year average is located at 1.3145. USD/CAD ranges from 1.3145, 1.3207, 1.3311 and 1.3441. EUR/NZD trades oversold and overall inside a range from 1.7698 to 1.7362 and 1.7143. GBP/NZD ranges from 2.0252 to 2.0020. EUR/EM Best shorts for the week are EUR/CZK, EUR/INR, EUR/KRW, USD/EM Brest trades: USD/ZAR, USD/MXN, USD/MYR, USD/RON. The vast majority of EM currencies are either locked in  small  ranges or USD/EM Vs EUR/EM are in contention to both as oversold or overbought.