The Week Ahead - Gold Pushes For Another Record - Orbex Forex Trading Blog

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EURUSD Awaits NFP

The euro saw another shift to the upside in recent sessions as the EURUSD pair hit another psychological level. The bullish sentiment has continued since October as over 500 pips have been added. With less volume injected into the market due to the holiday period, traders will look ahead to this week’s NFP data for a turnaround in fortunes for the dollar. As the 1.11 level was hit, this seems to be a sticking point for higher price action as firm resistance took hold. Another charge at the said handle could see a valid correction as the RSI looks limited.

GBPUSD Another Day, Another Rally

Like the EURUSD pair, the pound has seen a firm gain against the greenback. With its highest level since August, there is cautious optimism that this bullish rally is yet to hit a conclusion. With inflation falling faster than expected in the UK, the Bank of England could be setting its sights on more of a dovish tone in its next meeting, which could propel the pound even further. Should price action remain in the recent bullish channel, this could clear a way to the 1.30 handle. Traders will be alert as a 1.26 break could shift momentum to the downside, especially with a bearish divergence in play.

XAUUSD Is a Correction in Sight?

Since the dip below $2,000 only a few weeks ago, Gold has added over $100 of value as the metal looks for another record high. A four-day advance was propelled by the growing confidence that the Fed will begin cutting rates sooner rather than later. With a tight monetary policy hanging over the economy for the past two years, all eyes will be on the Fed’s next move as we head into 2024. A firm resistance at the previous solid candle at the $2,090 has limited buys. The $2,000 handle still looks like it will be a firm support for now.

SPX500 No Signs of Slowing

The S&P500 remained slightly subdued after failing to test record highs. However, another push to the upside seems possible with traders resetting their portfolios as the new year begins. The holiday period offered some comfort as the index remains bullish. However, another push to the 4800 level could see some resistance with the RSI looking majorly overbought. As we move past the Santa Rally, will stocks take a turn lower and open up a reversal for the S&P?