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Happy New Year! We hope 2025 brings you abundant health, wealth, and success. With the holiday lull behind us, the markets are reawakening with full volume, setting the stage for an exciting trading week. Let’s dive into the charts to uncover potential opportunities across major instruments.
DXY (USD Index)
The USD Index remains firmly bullish as we step into 2025. On the three-monthly chart, the consistent upward momentum signals a robust long-term trend. Despite minor corrections on lower time frames, the overall structure indicates further gains, with key resistance levels around 110.91 and 112.00 in sight. Short-term divergences on the 4-hour chart hint at potential pullbacks to the 108.15–108.30 region, offering attractive re-entry points for trend-following traders.
AUDCAD
The AUDCAD pair continues its descent, shaped by a bearish weekly structure that started with divergence and a decisive break of key levels. However, recent bullish divergence on lower time frames suggests a short-term pullback could materialise before the downtrend resumes. Resistance levels near 0.9020–0.9030 are likely to attract sellers, with a secondary target around 0.9109 before bearish momentum kicks back in. This interplay of forces presents excellent short-term trading opportunities.
EURCHF
EURCHF paints a complex picture this week. The pair struggles between bullish divergence on the weekly timeframe and bearish dominance on lower charts. While buyers briefly gained ground, a double top on the daily chart coupled with bearish divergence signals sellers are back in control. Key support lies at 0.9314–0.9304, and rallies towards resistance near 0.9394–0.9400 should be seen as opportunities to rejoin the bearish wave. The short-term outlook favours continued weakness unless significant bullish momentum develops.
GBPNZD
Despite a long-term bullish trend, GBPNZD shows signs of short-term exhaustion. On the weekly chart, potential bearish divergence looms, signalling a likely pullback. The daily and 4-hour charts confirm selling pressure, with a double top formation strengthening the bearish case. Sellers are expected to target levels around 2.1930–2.1900, while resistance at 2.2230 provides an excellent entry point for those looking to trade the correction.
XAUUSD (Gold)
Gold remains a beacon of strength heading into 2025. On the three-monthly chart, bullish momentum continues, with a higher support level firmly established at 2540. Despite a short-term bearish triangle consolidation on lower timeframes, the longer-term outlook points to continued gains, with resistance between 2824 and 2876 as the next major targets. This mix of short-term weakness and long-term strength provides a unique opportunity to trade within a defined range.
This week brings a mix of long-term trends and short-term corrections across major instruments. Whether you’re looking to trade the steady rise of the DXY, the pullback potential in AUDCAD, or the long-term resilience of gold, opportunities abound for prepared traders.
Here’s to a week of smart trading and profitable setups!
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