The financial markets enter the week ofNovember 18–22, 2024, amid significant economic and political developmentsshaping currency, commodity, and cryptocurrency movements. The recentre-election of Donald Trump has boosted market confidence in a pro-business andderegulation-focused administration, strengthening the US dollar. This has beenfurther supported by robust US economic data, including low unemployment andresilient consumer spending, which reinforce expectations of continued monetarypolicy tightening by the Federal Reserve.
Globally, the eurozone remains underpressure due to sluggish growth and political uncertainties, which weigh on theeuro. Gold prices are responding to the dollar’s strength, as investors weighthe prospects of higher interest rates against the metal's role as a safe-havenasset. Meanwhile, bitcoin is seeing record highs, driven by optimism aboutregulatory clarity and increased institutional adoption. These factors will bekey drivers of market dynamics for EUR/USD, XAU/USD, and BTC/USD in the upcomingweek.
EUR/USD
The EUR/USD pair isexpected to test the support area near 1.0450, with a potential reboundsignalling further growth towards the target level of 1.0875. An additionalsignal supporting this bullish scenario is a test of the support line on theRSI indicator.The key level to watch for invalidatingthis growth outlook is 1.0365. A breakout below this level would indicatefurther bearish momentum, with the pair likely continuing to decline towardsthe target of 0.9945. Conversely, confirmation of sustained growth wouldrequire a breakout above the 1.0665 level, signalling a breach of thedescending channel and opening the path for further upward movement.
This outlook considers the interplay oftechnical signals and critical support and resistance levels, which tradersshould monitor closely in the coming week.
XAU/USD
Gold ended the week near 2568, withXAU/USD moving within a bullish channel. Moving averages suggest a bullishtrend, with prices testing key signal lines, indicating buyer pressure andpotential growth. A decline towards the 2455 support level is expected,followed by a rebound targeting 2675.
A rebound from the RSI support line andthe lower border of the bullish channel supports the growth scenario. However,a breakout below 2385 would invalidate this outlook, signalling a declinetowards 2315. Confirmation of continued growth would require a breakout above2625, indicating further bullish momentum.
BTC/USD
Bitcoin (BTC/USD) closed the week at89,337, moving within a bullish channel that suggests a continued upward trend.The moving averages and recent upward breakout through signal lines supportthis bullish momentum. However, a short-term correction towards the 76,505support level is possible, from which a rebound could lead to further gains,targeting levels above 112,605.
Key signals for the week include abounce from the bullish channel’s lower boundary and the RSI support line. Adrop below 73,605 would invalidate the bullish outlook, potentially leading toa decline towards 65,605. Conversely, a breakout above 99,905 would confirmfurther upward movement in line with the channel’s width.
NordFX Analytical Group
Notice:These materials are not investment recommendations or guidelines for working infinancial markets and are intended for informational purposes only. Trading infinancial markets is risky and can result in a complete loss of depositedfunds.
