The past trading week saw significant movements across major financial instruments, with notable volatility in forex, gold, and cryptocurrency markets. The euro demonstrated strong growth against the US dollar, while gold remained within its bullish channel despite undergoing a correction. Bitcoin continued to test key levels, showing signs of both support and resistance as it fluctuated within a downward correction channel.
Looking ahead to the upcoming week, market participants should brace for continued fluctuations driven by economic data releases, central bank policy expectations, and broader risk sentiment. EUR/USD is poised for potential gains despite facing resistance, gold may extend its uptrend following a correction, and bitcoin remains at a critical juncture where a further decline could signal a deeper correction.
EUR/USD
The EUR/USD pair closed the previous week with strong growth, settling near 1.0837. Despite the overall bearish trend indicated by moving averages, prices have broken above the signal lines, suggesting renewed bullish momentum. In the coming week, the pair may initially experience a pullback towards the support area at 1.0655 before rebounding and continuing its upward trajectory. The primary growth target for the euro stands above 1.1175.
A key factor supporting this potential rise is a test of the support line on the relative strength index (RSI), which historically signals upward reversals. Additionally, a bounce from the lower boundary of the bullish channel would reinforce this scenario. However, a decline below 1.0505 would invalidate the bullish outlook, potentially triggering a deeper fall towards 1.0245. Confirmation of sustained growth would require a breakout above 1.0885, which would indicate a breach of the upper boundary of the descending channel.
XAU/USD (Gold)
Gold ended the previous trading week near 2913, undergoing a correction within its ongoing bullish trend. Moving averages continue to reflect an upward trajectory, and the price action suggests that buyers remain in control. For the upcoming week, a short-term decline towards the support level at 2865 is likely before an upward reversal leads to further gains. The primary target for gold remains above 3085.
An additional confirmation of the bullish scenario will be a rebound from the trend line on the RSI, as well as a reaction at the lower boundary of the bullish channel. However, a drop below 2745 would signal the cancellation of this bullish outlook, potentially driving prices down towards 2675. Conversely, a breakout above 2965 would reinforce expectations of continued growth.
BTC/USD (Bitcoin)
Bitcoin concluded the previous week at 88,497, maintaining its position within a broader corrective phase. Although the moving averages still point to an overall uptrend, the market is currently facing downward pressure. In the week ahead, BTC/USD may test the support level at 86,505 before attempting another upward move towards 115,685.
A rebound from the lower boundary of the bullish channel or the RSI trend line would support this bullish scenario. However, if bitcoin breaks below 72,305, it would invalidate the upward trend and could lead to a deeper decline, with a target at 66,405. A confirmed bullish continuation would require a breakout above 96,055, which would indicate a shift back towards a more aggressive upward trend.
Conclusion
The coming trading week is expected to bring heightened market activity, with EUR/USD seeking support before resuming its climb, gold aiming for further gains after a correction, and bitcoin standing at a crucial technical threshold. Key support and resistance levels will determine the next major movements for each asset. Traders should remain vigilant to economic releases and technical indicators to navigate the evolving market landscape effectively.
NordFX Analytical Group
Disclaimer: These materials are not an investment recommendation or a guide for working on financial markets and are for informational purposes only. Trading on financial markets is risky and can lead to a complete loss of deposited funds.
