Daily Market Analysis from NordFX

[Stan NordFX]

Forex and Cryptocurrency Forecast for December 02 – 06, 2024

As November draws to a close and December begins, financial markets remain dynamic, shaped by a mix of geopolitical events, monetary policy updates, and investor sentiment shifts. The Eurozone faces persistent economic challenges, weighing on the euro, while gold continues to shine as a safe haven amidst global uncertainty. Meanwhile, the cryptocurrency market, led by bitcoin, is riding a wave of optimism as regulatory developments and institutional interest bolster its upward momentum.
Here’s a detailed analysis of the key instruments,EUR/USD, BTC/USD, and XAU/USD,as we head into the first trading week of December 2024.

EUR/USD

The EUR/USD pair concluded the previous week at 1.0544, remaining within a long-term descending channel. Indicators, including moving averages, confirm a prevailing bearish trend as prices recently broke below key signal levels. However, the potential for a rebound remains.
Early in the week, the pair is expected to test the support level around 1.0345. If this level holds, the pair may see a recovery, with a potential rise toward the resistance area above 1.0735. Such movement could gain support from technical signals, including a test of the RSI support line or a bounce from the channel's lower boundary. On the downside, a decisive break below the 1.0125 level would invalidate the recovery scenario, opening the door for further declines toward 0.9825.

XAU/USD



Gold closed the week at $2,658, continuing its upward movement within an ascending channel. Indicators such as moving averages confirm the strength of the bullish trend, with prices breaching key resistance levels. Despite the positive outlook, a short-term decline may emerge before further growth.
The price is likely to test the $2,525 support level at the beginning of the week. If this level holds, gold could rebound and climb towards $3,005. Signals from the RSI and a bounce from the ascending channel's lower boundary would further support this movement. Conversely, a drop below $2,445 would undermine the bullish scenario, potentially driving prices toward $2,375.

BTC/USD

Bitcoin ended last week at $97,047, maintaining its upward trajectory within a bullish channel. The cryptocurrency's performance remains underpinned by moving averages and a breakout above key signal areas. While the broader trend is bullish, a short-term correction may precede further gains.
A pullback to the support area near $90,405 could occur early in the week. Following this, bitcoin is expected to resume its ascent, targeting levels above $120,505. Indicators such as a rebound from the bullish channel's lower boundary and RSI trendline support could validate this growth. However, a fall below the $80,505 level would signal a breakdown in the bullish structure and suggest a decline toward $72,665.

The first week of December is set to be a pivotal period for the markets. While EUR/USD remains under bearish pressure, there are opportunities for rebounds if support levels hold. Bitcoin's bullish trend appears intact, though traders should anticipate and prepare for short-term corrections. Gold, as a safe-haven asset, shows strong potential for growth, provided its critical support areas remain unbroken. In light of these dynamics, traders should carefully monitor the markets and adapt their strategies accordingly.

NordFX Analytical Group

Notice: These materials are not investment recommendations or guidelines for working in financial markets and are intended for informational purposes only. Trading in financial markets is risky and can result in a complete loss of deposited funds.