Following the sharp sell-off at the end of last week, the US dollar stabilized on Monday and attempted to recover part of its losses; gold remains one of the strongest markets, holding close to its recent highs after an exceptionally strong performance last week; EURUSD has settled around 1.1665–1.1680 following the last week’s strong advance; Bitcoin has entered a period of consolidation, holding broadly around the $79,000–$80,000 area.
- The USD pauses but the pressure remains.
- The fundamental backdrop remains supportive for XAUUSD as the renewed dollar-debasement narrative continues to favour the precious metal.
- The immediate task for EURUSD is to hold close to current levels and prevent the ordinary profit-taking from developing into a deeper correction.
- The absence of aggressive profit-taking in Bitcoin is constructive, as sellers have failed to push the market back into its previous trading range.
Today’s focus
FX snapshot
XAUUSD
A sustained hold above the $4,600–$4,650 area would keep the bullish structure intact and bring $4,700–$4,750 into focus as the next major target.
EURUSD
If pressure on the US dollar resumes, EURUSD could quickly return towards 1.1700–1.1710 and test the buyers to extend the move.
BTC
Holding the $79,000–$80,000 area would preserve the possibility of another challenge of $81,000–$83,000, where the next important test of buyer conviction is likely to emerge.
Market sentiment
The new week has begun with markets largely consolidating around the levels reached on Friday, as the absence of fresh external catalysts kept trading relatively subdued. There was neither a continuation of last week’s buying nor any significant profit-taking, leaving the broader market picture largely unchanged.
