Welcome to this week’s detailed market forecast as we start the trading week on November 11th. With the U.S. elections now behind us and President Donald Trump re-elected, the financial markets have shown a strong reaction. Let's dig into the analysis and find tradable opportunities across our key instruments: DXY, US10Y, EURUSD, Bitcoin, and XAUUSD.
Post-election, the U.S. Dollar has shown robust strength. On the daily chart, the dollar rallied significantly and is currently at a key support zone. If the DXY maintains above 103.59, it is poised to test the resistance at 106.77% soon. Should it breach below 103.5, a deeper correction could be expected, but the likelihood remains low.
Reflecting investor confidence, the US10Y chart is bullish, suggesting strong economic expectations. Currently under a falling trendline, a breakout could propel the next bullish rally. Short-term, you might see the yield retract to 23% before resuming its upward trajectory.
In contrast, the EURUSD appears bearish as it inversely correlates with the strengthening dollar. Currently hovering around 1.0670, a significant support level, any rally should be viewed as a selling opportunity under the present market conditions. Downward projections see it potentially reaching 1.06265.
The cryptocurrency market is buzzing, particularly Bitcoin, which shows strong bullish signals on both monthly and weekly charts. With no significant resistance until the 117,000 level, current dynamics suggest Bitcoin could achieve this target swiftly, driven by solid momentum and market enthusiasm.
Gold exhibits a complex pattern with potential bearish divergence on the MACD histogram, indicating possible short-term pullbacks. Key resistance remains at 2,757; unless it's breached, gold prices are expected to decline towards the 2,576 - 2,556 range before resuming a bullish trend.
Watch for key resistance and support levels, and be prepared to pivot based on market conditions.
As always, Nikkhil is here to assist you in navigating these opportunities for a profitable trading week ahead.
Wishing you a successful trading week, [Name]
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