The global market sentiment has recently shifted towards a positive trajectory following a brief downturn. However, this upswing can be attributed to gains in the technology sector and heightened anticipation surrounding the upcoming jobs report, which is poised to significantly influence market expectations in the near future.

It is worth noting that the S&P 500 rose by 0.80% to 4,585.59, and the Dow added 62.95 points, or 0.17%, reaching 36,117.38. The Nasdaq Composite led the way with a 1.37% gain, closing at 14,339.99, driven by a robust performance from technology stocks. Throughout the week, the Nasdaq has consistently outperformed, posting a 0.2% gain, while the Dow and S&P 500 are expected to conclude the week slightly lower by around 0.4% and 0.2%, respectively.

Market Concerns Amidst Mixed Job Market Data

However, this upward momentum follows concerns about a potential slowdown in the late 2023 rally, as the Dow and S&P 500 experienced their first three-day negative streaks since October. Investor attention this week has been centered on the job market amid mixed data releases. Thursday's weekly jobless claims, which came in below economist expectations, and a decline in continuing jobless claims provided some relief.

Private payrolls data released on Wednesday showed fewer job additions than anticipated, and October's job openings reached their lowest point since March 2021. The anticipation for Friday's official jobs report has intensified, with economists expecting the addition of 190,000 jobs in November. Investors are closely monitoring for signs of a slowing labor market, which would align with the Federal Reserve's decision to pause interest rate hikes.

Therefore, the disappointing job data and low job openings in October, combined with the heightened anticipation for the official jobs report, are impacting global market sentiment as investors closely watch for signs of a potential slowdown in the labor market, aligning with the Federal Reserve's cautious approach on interest rate hikes.

 S&P500 (SPX) - Technical Analysis

The S&P 500 remains a barometer for investor sentiment and economic expectations. On December 8th, the index exhibited a minor uptick in value, nudging up by a mere 0.05% to anchor at 4585.58. The market’s subtle shift in momentum is reflected in the chart's resistance levels, which lie at $4606 and extend upwards to $4694, with the ultimate test being the $4765 mark.

The index’s pivot point, the threshold between bullish and bearish sentiment, stands firm at $4585. Key support levels are drawn at $4491, $4425, and the more distant $4351, ready to offer a safety net should the index falter.

Technical indicators provide mixed signals. The Relative Strength Index (RSI) hovers around 65, indicating a market that is neither overextended nor retreating, suggesting a potential for further gains without immediate concern for a reversal.

Importantly, the 50-day Exponential Moving Average (EMA), not specified but typically a gauge for trend direction, could further inform the short-term market trajectory.

Market patterns reveal a range-bound behavior, with a clear resistance ceiling in sight. The implication here is that the S&P 500 is testing the waters, potentially gearing up for a decisive movement that could set the tone for the year-end market performance.

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Daily Price Outlook

During the European trading session, the USD/JPY currency pair failed to stop its downtrend, losing further ground as the Japanese Yen (JPY) gained aggressive bids on Thursday. It surged to a three-month high against the US Dollar amidst growing expectations of a shift in the Bank of Japan's (BoJ) policy stance.

BoJ Governor Kazuo Ueda discussed monetary policy, mentioning considerations for wage hikes during a meeting with Japanese Prime Minister Fumio Kishida. This has led to speculation that the BoJ might think about moving away from its long-standing monetary stimulus, given the prospect of significant wage increases for the second year in a row.

Fed Rate Hike Expectations, Job Market Concerns, and Data Ahead

Meanwhile, the Japanese Yen is gaining strength as stock markets weaken, thanks to its safe-haven reputation. Furthermore, the broad-based US dollar is losing ground, bringing the USD/JPY pair to its lowest level since September, dropping below 146.00. Traders are watching the US Weekly Initial Jobless Claims data for potential market impact later in the North American session.

It's worth noting that many expected the Federal Reserve to stop raising interest rates in 2024 as concerns about a slowing economy are rising as signs of a loosening US job market emerge. The US Labor Department reported a 617K decline in job openings to 8.73 million in October, the lowest in two-and-a-half years.

The ADP report revealed a modest 103K job addition in November, reinforcing expectations of a Federal Reserve policy shift and a possible 25 basis points rate cut in March.

Potential Impact on USD/JPY Pair Amidst Gaza Conflict and China Economic Concerns

Moreover, Israeli forces intensified ground operations in southern Gaza, escalating combat against Hamas militants and worsening the humanitarian crisis. Meanwhile, China's mixed Trade Balance data for November revealed an unexpected 0.6% decline in imports, sparking concerns about weak domestic demand amid recession risks.

Therefore, the intensified conflict in Gaza and concerns about China's economic slowdown may lead to increased safe-haven demand for the Japanese Yen, potentially strengthening it against the US Dollar.

USD/JPY - Technical Analysis

As of December 7, the USD/JPY pair has witnessed a downward shift, decreasing by 0.38% to 146.712. The currency pair, within the context of a fluctuating forex market, is currently grappling with key technical levels that will determine its short-term trajectory. It navigates around a pivotal point at 144.72, with immediate resistance placed at 145.75. Subsequent resistance levels are seen at 147.75 and 148.84, posing potential hurdles to upward movements. On the downside, immediate support is established at 142.71, followed by stronger support levels at 140.82 and 138.76.

The Relative Strength Index (RSI) for USD/JPY is at 41, indicating a bearish sentiment as it remains below the neutral mark of 50. This suggests the pair is not in an overbought state, leaving scope for potential directional changes. The Moving Average Convergence Divergence (MACD) shows a slight positive value of 0.02 against a signal line of -0.14, hinting at a subdued bullish momentum.

Notably, the pair is trading below the 50-day Exponential Moving Average (EMA) of 147.06, further underscoring the bearish bias. The observed downward trendline, extending resistance at 147.350, suggests a continuation of this trend. This pattern indicates that the pair could maintain its bearish stance unless it breaches the 147.350 level.

In conclusion, the technical analysis of the USD/JPY pair points to a bearish trend below the 147.350 mark in the short term. The pair's movements will likely be influenced by a combination of technical indicators, chart patterns, and broader market sentiment, focusing on resistance testing if there is a shift in market dynamics.

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Daily Price Outlook

Gold price (XAU/USD) maintained its upward trend and remained well bid around $2,030 marks. However, this upward trend can be attributed to a risk-off market sentiment, which typically bolsters the appeal of safe-haven assets such as gold. Another important factor contributing to the positive momentum in gold prices is the anticipation that the Federal Reserve has ended its cycle of interest rate hikes.

Besides this, the recent dovish statements from European Central Bank (ECB) officials, coupled with decisions by the Reserve Bank of Australia (RBA) and the Bank of Canada (BoC) to keep interest rates unchanged, further enhance the attractiveness of gold.

In contrast to this, the latest positive reversal in the US dollar price was seen as one of the key factors that cap further gains in the gold price. Notably, the weakening JOLTS Job Openings data from the United States on Tuesday, coupled with the softer ADP report on Wednesday, serves as evidence that the US job market is showing signs of a slowdown. This in turn, heightened concerns about an economic downturn in the world's largest economy. Consequently, this economic uncertainty is seen as providing additional support to the safe-haven appeal of gold.

Factors Influencing Gold Prices Amidst Weaker US Employment Data and Rate Cut Speculations

It's worth noting that weaker US employment data released this week suggests the Federal Reserve won't raise interest rates. This is good news for gold prices. The Labor Department's report on job openings hit a 2.5-year low, indicating lower demand due to interest rates. The ADP report also signals a cooling job market, with private payrolls rising by 103K in November.

Market predictions hint at a two-in-three chance of a rate cut by March, lowering US bond yields and supporting XAU/USD. Despite the US Dollar's recent gains, traders are cautious ahead of the crucial US NFP report, which will impact the Fed's policy outlook. The upcoming US Weekly Initial Jobless Claims are also in focus.

Economic Concerns and Geopolitical Tensions Drive Gold Price Surge

Furthermore, China's Trade Balance data revealed a surprising 0.6% drop in imports for November, raising concerns about weak domestic demand and recession risks. Meanwhile, Israel escalated its ground offensive against Hamas in the Gaza Strip's south and intensified strikes near Khan Younis. These developments could boost the price of gold as investors seek safe-haven assets amid increased geopolitical tensions.

GOLD (XAU/USD) - Technical Analysis

As of December 7, Gold exhibits a subtle yet noticeable upward movement, marking a 0.05% increase to $2026. Analyzing the 4-hour chart timeframe, the precious metal is currently trading around a critical pivot point of $2,034. The immediate resistance is identified at $2,052, with further resistance levels at $2,073 and $2,091, each representing potential barriers to Gold's ascent. On the flip side, the metal finds immediate support at $2,009, followed by subsequent levels at $1,989 and $1,967, which could provide a safety net against any downward pressure.

The Relative Strength Index (RSI) stands at 58, indicating a bullish sentiment without venturing into overbought territory. This suggests a continued interest among buyers, but with caution, as the market has not reached an overly enthusiastic state. The price of Gold is also trading above the 50-Day Exponential Moving Average (EMA) of $2,028, reinforcing the short-term bullish trend. However, the upward trendline breakout suggests a selling pressure below the $2028 mark, which traders should closely monitor.

The observed chart patterns and technical indicators collectively point to a cautiously optimistic outlook for Gold. The asset remains bullish above the $2010 threshold, suggesting that if it maintains its stance above this level, we may witness further tests of the resistance levels. This technical analysis is supported by broader market sentiments and economic indicators, which continue to play a significant role in influencing Gold's trajectory.

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Daily Price Outlook

The AUD/USD currency pair failed to stop its declining streak and remained under some selling pressure near 0.6530 for the fourth successive day on Thursday. However, the reason for its downward trend could be associated with China’s economic woes and RBA rate cut bets, which weigh on the Aussie and contribute to the losses in the AUD/USD pair. In contrast to this, the dovish Fed expectations might cap any further gains in the US dollar and lend some support to the AUD/USD currency pair.

China's Trade Shifts, Moody's Downgrade, and RBA Rate Cut Outlook Affect Australian Dollar (AUD)

It's worth noting that China's trade surplus surged to $68.39 billion in November, up from the previous $56.53 billion. The report revealed a surprising 0.5% increase in exports but, worryingly, a significant 0.6% drop in imports, signaling concerns about weak domestic demand. In the meantime, Moody's downgraded China's credit outlook, affecting state-owned firms and banks, and dampening investor interest in riskier assets.

On top of this, Australia's trade data was not impressive, and growing expectations of a Reserve Bank of Australia (RBA) rate cut around August/September 2024 are weighing on the Australian Dollar and contributing to the AUDUSD currency pair.

USD Strength, Cautious Sentiment, and Fed Expectations Impacting AUD/USD Pair

Moreover, the risk-off market mood is helping the safe-haven US Dollar to maintain its recent strength, reaching a two-week peak on Wednesday. This is putting some pressure on the AUD/USD pair. However, expectations of a more dovish stance from the Federal Reserve (Fed) are capping further USD gains and providing a support to the Aussie.

Investors believe the Fed won't tighten its policies further and are now leaning towards a 25 bps rate cut in the upcoming March meeting. This shift is backed by recent US data hinting at a potential easing in the historically tight job market.

Looking ahead, investors will be closely monitoring the release of the Weekly Initial Jobless Claims data from the US. Furthermore, attention will be on the highly anticipated US monthly employment details, commonly referred to as the Non-Farm Payrolls (NFP) report, scheduled for Friday.

AUD/USD - Technical Analysis

On December 7, the Australian Dollar (AUD/USD) experienced a decline, registering a 0.27% decrease to 0.65321. The currency pair, in the broader scope of the Forex market, is situated at a crucial juncture, hovering around the pivot point of $0.6530. The AUD/USD faces immediate resistance at $0.6602, followed by higher barriers at $0.6639 and $0.6713. Conversely, immediate support is established at $0.6493, with additional support levels at $0.6456 and $0.6419, potentially providing stability against further declines.

The Relative Strength Index (RSI) for the pair stands at 34, indicating a bearish sentiment as it resides below the neutral 50 mark. This suggests that the pair is neither in the overbought nor oversold territory, leaving room for potential directional changes. The Moving Average Convergence Divergence (MACD) is marginally negative at -0.00056 compared to its signal line at -0.00185, hinting at a subdued bearish momentum.

Notably, the AUD/USD is trading just below the 50-day Exponential Moving Average (EMA) of $0.6562, further underscoring the current bearish inclination. The observed upward channel breakout and the closing of candles below the 0.6550 level suggest selling pressure in the market. This technical pattern indicates a potential continuation of the bearish trend, provided the pair remains below the crucial 0.6550 threshold.

In conclusion, the AUD/USD pair exhibits a bearish bias in the short term, predominantly influenced by technical indicators and chart patterns. The currency pair's movements are likely to be contingent on the broader market sentiment and economic data releases, with a focus on resistance testing if there's a shift in market dynamics.

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Despite the positive Eurozone PMI data for November, the EUR/USD pair failed to stop its downward trend and remained well offered below the significant 1.0800 mark. However, the decline in value can be attributed to the discouraging German data, which is putting pressure on the Euro. Concurrently, the bearish US dollar is seen as a key factor that could help in limiting the EUR/USD pair's further declines.

Eurozone PMI Trends and US Economic Dynamics

It is worth noting that the IHS Markit Eurozone Composite PMI, a measure that combines both the manufacturing and service sectors, continued to stay below 50.0 in November. This means a sustained contraction in private sector output across the Eurozone.

Specifically, the Eurozone Composite PMI for November stood at 47.6, showing a marginal improvement from the previous month's 47.1 and surpassing market expectations set at 47.1. Concurrently, the IHS Markit Services PMI increased to 48.7 from the earlier figure of 48.2.

Furthermore, the US Dollar is losing ground and hovering around 104.00, amid the decline in US Treasury bond yields. Recent economic data released on Tuesday indicated that the US ISM Services PMI for November surpassed expectations, surging to 52.7 from the previous 51.8.

On the flip side, JOLTS Job Openings experienced a reversal, decreasing by 617,000 to 8.73 million in October. This marks the lowest point since March 2021, according to a report from the Bureau of Labor Statistics.

German Factory Orders Decline and Future Market Focus

Furthermore, Germany's Factory Orders took an unexpected hit in October, as per data from the Federal Statistics Office. This suggests a setback in the recovery of the German manufacturing sector. Month-on-month, orders for goods 'Made in Germany' fell by 3.7%, contrasting with a 0.2% increase in September and missing the expected 0% reading.

On an annual basis, Germany's Industrial Orders plunged by 7.3% in the reported month, compared to the previous fall of 4.3%. This disappointing data is putting pressure on the Euro, resulting in the EUR/USD pair losing 0.08% for the day and trading at 1.0785 at the moment.

EUR/USD - Technical Analysis

The Euro hovers with a cautious uptick against the Dollar, registering a minuscule gain of 0.01%, to stand pat at the 1.0800 level. This muted movement belies the currency's attempt to carve out a recovery path amidst a complex economic backdrop.

EUR/USD's current technical landscape is demarcated by a pivot point at 1.0804, a bastion above which the pair may strive to ascend. The immediate resistance awaiting conquest lies at 1.0909, with further bulwarks erected at 1.0992 and 1.1097. Conversely, a descent would be cushioned by supports at 1.0723, 1.0611, and perhaps more critically at 1.0507.

The Relative Strength Index (RSI) loiters at the 30 mark, teetering on the edge of the oversold territory, a potential harbinger of an impending rally should the Euro gain momentum. Complementing this narrative is the MACD, which, at -0.00042, flirts with its signal line, poised for a possible bullish crossover.

The 50-Day Exponential Moving Average (EMA) currently reads at 1.0816, a mere whisker away from the pair's price, suggesting a latent tug-of-war between the bulls and the bears.

Chart analysis paints a picture of consolidation with an inclination towards an upward break. Should the Euro sustain above 1.07930, a bullish outlook could be solidified, setting the stage for a test of loftier resistances.

In summary, EUR/USD's trajectory is cautiously optimistic above 1.07930, with the market's eyes trained on resistance levels for confirmation of the Euro's stamina in the near term.

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The GBP/USD currency pair stopped its two-day decline and maintained a position above the 1.2600 support level during Wednesday's European trading hours. However, the upward momentum in the pair can be attributed to the weakening of the US Dollar.

On the flip side, the upticks in the GBP/USD pair could be short-lived as the markets increase bets on an earlier start to interest rate cuts by the Bank of England (BoE). Financial markets are now almost fully priced in a first BoE rate cut by June 2024.

Therefore, the GBP/USD pair is likely to experience downward pressure as markets anticipate the possibility of earlier interest rate cuts by the Bank of England, which could have an impact on investor confidence.

U.S. Economic Indicators and Their Potential Impact on the GBP/USD Pair

It's worth noting that this week's US job openings data, measured by JOLTS, turned out worse than anticipated. Notably, the numbers dropped by 617,000 to 8.733 million in October, hitting the lowest point since March 2021. Now, the focus shifts to Wednesday's ADP job report for November, where a 130,000 increase is expected.

On a positive note, the US ISM Services PMI for November exceeded market expectations, growing from 51.8 to 52.7. The spotlight this week is on employment data, particularly the ADP Employment Change and Nonfarm Payrolls (NFP), which could provide clues about future interest rate moves.

Despite this, the market anticipates the Federal Reserve to maintain unchanged interest rates at its December meeting next week. All eyes are on these indicators as they play a crucial role in shaping expectations for the economic path ahead.

Therefore, the weaker-than-expected US job data will likely lead to a cautious market sentiment, potentially benefiting the GBP/USD pair.

Impact on GBP/USD Pair Amidst Anticipated BoE Rate Cuts

Moreover, there is a growing belief in the markets that the Bank of England (BoE) might start interest rate cuts sooner than expected. Investors are now almost fully expecting the first BoE rate cut by June 2024. This week, all eyes are on the BoE's Financial Stability Report on Wednesday.

Traders will also be closely watching the UK S&P Global/CIPS Construction PMI for November, along with the US ADP private employment and Unit Labor Cost data later on Wednesday.

GBP/USD - Technical Analysis

The British Pound finds modest fortitude against the US Dollar, with GBP/USD ticking up 0.14% to trade around the 1.26 mark. The currency pair's recent performance hints at an emerging cautious optimism among traders as they navigate the waters of global economic uncertainty.

A technical examination reveals a pivot point at 1.2537, serving as the fulcrum for the cable's short-term trajectory. Resistance is staged at 1.2623, followed by further barriers at 1.2680 and 1.2768. Should Sterling wane, it will encounter a series of supports at 1.2481, 1.2427, and critically at 1.2371, which could arrest any downward spirals.

The Relative Strength Index (RSI) lingers at 44, subtly underscoring the market's indecision, as it hovers below the bullish threshold of 50. Meanwhile, the 50-Day Exponential Moving Average (EMA) stands at 1.2619, suggesting the Pound's path may hinge upon its ability to sustain above this level.

Chart patterns have yet to disclose a definitive narrative, with the GBP/USD straddling a line of neutrality. The implication here is one of potential: a decisive stride above 1.2585 could ignite bullish fervor, whereas failure to maintain this level could see a retest of lower supports.

In sum, the Pound's current stance is one of cautious bullishness above 1.2585, with traders likely to eye resistance levels as benchmarks for the Sterling's stamina in the days ahead.

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Gold price (XAU/USD) has sustained its upward momentum, gaining additional support near $2,020 as the US Dollar continues to losing traction. Despite the overall risk-off mood in the market, the US Dollar is struggling to maintain its strength. Traders are grappling with renewed concerns about the Chinese economy, contributing to the dollar's decline.

Although, the possibility for a more significant rebound in the gold price is hindered by a modest increase in US Treasury bond yields. Market participants are currently factoring in a roughly 60% likelihood of a US Federal Reserve interest rate cut in March, which could cap the upward momentum in the gold market.

Fed Expectations and Economic Indicators: Impact on Gold Prices

It's noteworthy that recent economic developments in the US haven't substantially altered the expectations surrounding the Federal Reserve's stance on interest rates. According to the Institute for Supply Management (ISM), the Services Purchasing Managers' Index (PMI) for November stands at 52.7, showing a slight improvement compared to October's figure of 51.8.

Conversely, the US job market appears somewhat unstable. The JOLTS Job Openings report unveiled a decline to 8.733 million in October, marking the lowest figure in over 2.5 years. This indicates a potential weakening of the job market. Despite these mixed signals, the data hasn't altered expectations regarding the Federal Reserve's outlook, with market sentiments remaining relatively unchanged.

Therefore, the mixed US economic data had a limited impact on gold prices, as uncertainties regarding the job market and the Fed's stance left investors cautious, resulting in relatively stable gold prices.

Moody's China Rating and Gold's Safe-Haven Appeal

Furthermore, Moody’s Investors Service recently changed its outlook on China’s government credit ratings from stable to negative. This move has made investors cautious about riskier assets, leading them to seek refuge in the traditional safe-haven asset like Gold.

Looking ahead, the focus is on the upcoming US ADP Employment Change data set for release on Wednesday. Moreover, Gold prices are poised to be influenced by the prevailing risk sentiment, which in turn affects the US Dollar and US Treasury bond yields.

GOLD (XAU/USD) - Technical Analysis

Gold's lustrous climb has encountered a pause, consolidating around $2,023—an uptick of 0.21% from the previous session. As traders and investors analyze the charts, the pivot point is firmly placed at $2,023, marking the balance line between bullish hopes and bearish pragmatism.

Resistance levels at $2,048, $2,098, and $2,124 loom overhead, each a potential turning point for Gold’s next move. Should the metal succumb to bearish pressure, supports at $1,975, $1,949, and $1,921 stand ready to catch a falling market.

The technical indicators signal caution: the Relative Strength Index (RSI) sits at a tentative 42, neither overbought nor oversold, yet tilting towards a bearish bias. The 50-Day Exponential Moving Average (EMA) at $2,028 currently overshadows the price, potentially capping upward moves.

In the realm of patterns, there is no clear trend, suggesting a market in contemplation. The implication of this standoff is clear: a break on either side of the $2,030 demarcation could set the tone for the coming days.

In summary, Gold appears to be wrestling with a bearish undertone below the $2,030 level, and the metal's next direction seems hinged on whether it can muster the strength to challenge and hold above this threshold. Traders should brace for potential tests of resistance or support as the market seeks a new equilibrium.

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The USD/CAD currency pair maintained its upward trend and gained positive traction around above mid-1.3500s for the second successive day on Tuesday. However, the upward trend in the pair was supported by the downward pressure on Crude Oil prices. Simultaneously, a risk-off sentiment in the market favored the safe-haven USD, further contributing to the upward momentum in the USD/CAD pair.

Factors Pressuring the Canadian Dollar

It's worth noting that Investors are unsure if OPEC+ supply cuts will help much because of a gloomy global economy, which is expected to lower the demand for fuel. This is pushing oil prices back down, nearing the low seen in November. As a result, the Canadian Dollar (Loonie) linked to commodity prices is weakening, providing some support to the USD/CAD pair.

In the meantime, the anticipation that the Bank of Canada (BoC) might start cutting interest rates in the second quarter of 2024 also weighing on the Canadian Dollar and contributing to the gains in the USD/CAD pair.

Factors Influencing USD/CAD Pair Amid Global Uncertainty and Fed Caution

Another factor boosting the USD/CAD pair is the global preference for the US Dollar during uncertain times. However, the Federal Reserve's cautious stance is limiting the USD's potential gains. Many believe that US interest rates have peaked, and the Fed might start easing its monetary policy by March 2024. This belief is causing US Treasury bond yields to drop, restraining aggressive bets on the USD.

Consequently, this could prevent any significant upward movement in the USD/CAD pair, as traders remain cautious amid the dovish outlook for the Fed's future actions.

Looking forward, traders are now eyeing key US economic data, including ISM Services PMI and JOLTS Job Openings, along with US bond yields and overall market sentiment, to gauge USD demand.

USD/CAD - Technical Analysis

The USD/CAD pairing modestly ascended by 0.15%, positioning the pair at 1.35. This uptick marks a cautious optimism in the currency market as traders navigate through key technical junctures.

Technical analysis reveals that the currency pair is grappling with a pivot point at $1.3550. Should the bullish sentiment persist, the loonie could face resistance at $1.3640, with the possibility of extending gains towards $1.3720 and even $1.3765. Conversely, a shift in market dynamics could see the pair seek support at lower echelons, with $1.3480, $1.3395, and $1.3350 acting as potential cushions against further downside.

The Relative Strength Index (RSI) hovers at the midpoint of 49, a reflection of the market's indecision, perched on the brink of a directional bias. While not in the overbought or oversold regions, the RSI's proximity to the 50 mark leaves room for a swing in either direction based on forthcoming market stimuli.

The 50-Day Exponential Moving Average (EMA) stands at $1.3590, a beacon for the pair's short-term trajectory. Currently, the price’s position below the EMA leans towards a bearish outlook, yet the close margin allows for a quick shift should market sentiment change.

Chart patterns have yet to signal a definitive trend, with the absence of a clear symmetrical triangle or upward channel formation. Such patterns could indicate potential bullish momentum, yet their absence leaves the future uncertain.

In conclusion, the USD/CAD’s movement suggests a bearish tilt as long as the price action stays below the 1.3570 threshold. The near-term forecast will hinge on whether the pair can surpass this level, with resistance tests anticipated in the upcoming trading sessions.

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The AUD/USD currency pair failed to stop its downward trend and slipped below the level of 0.6600 during European trading session on Tuesday. However, this decline followed the monetary policy meeting of the Reserve Bank of Australia (RBA). As widely anticipated, the RBA decided to keep the interest rate unchanged at 4.35%. Consequently, the decision had a negative effect on the Australian Dollar and contributed to the losses in AUD/USD pair.

On the other side, the market has factored in a 97% probability that the Federal Reserve will maintain the interest rate within the range of 5.25% to 5.50% in the upcoming meeting. This exerted downward pressure on the US dollar and serve as a supportive factor for the AUD/USD pair.

RBA's Cautious Stance and Potential Impact on AUD/USD Pair

As we mentioned above, the Reserve Bank of Australia (RBA) decided to keep the interest rate unchanged at 4.35% during its December meeting. RBA Governor Michele Bullock mentioned that the need for additional tightening would depend on data and risk assessments for inflation targeting. Bullock also highlighted that maintaining the current cash rate allows the RBA to consider the effects of recent rate increases on demand, inflation, and the job market.

Therefore, the AUD/USD pair experienced a losses as the RBA's decision to keep the interest rate at 4.35% suggests a cautious stance, potentially leading to a weakening Australian Dollar.

Anticipated Fed Rate Cut and its Impact on AUD/USD

Moreover, Federal Reserve Chair Jerome Powell has reinforced expectations that the central bank won't raise rates further in its December meeting and might even cut rates by March 2024. The CME FedWatch Tool indicates a 97% chances that the Fed will maintain rates between 5.25% and 5.50% in the next meeting, with over a 50% chance of a 25 basis points rate cut by March next year, up from around 21% a week ago.

Hence, this potential rate cut could put downward pressure on the US Dollar, providing support for the AUD/USD pair.

AUD /USD - Technical Analysis

The Australian Dollar (AUD/USD) experienced a retreat in today's market, edging down by 0.63% to a trading value of 0.65. This recent move underscores a tepid sentiment as the currency grapples with fluctuating market forces.

Technical levels delineate a battleground for the AUD, with a pivot point at $0.6500 serving as the day's barometer for trend direction. Should bullish momentum take hold, traders will look to an immediate ceiling at $0.6600, followed by successive resistance levels potentially up to $0.6700. However, a slip in confidence could see the Aussie test floors at $0.6400, a support zone that holds the key to staving off further declines.

The Relative Strength Index (RSI) stands at 37, teetering towards the oversold territory but without decisively crossing the threshold, hinting at a bearish undercurrent yet a possibility of trend reversal if external market stimuli provide a nudge.

The 50-Day Exponential Moving Average (EMA), currently at $0.6600, poses a dynamic confluence point, with the AUD trading beneath it, a traditional bearish signal. Yet, the EMA's proximity to current levels could see it easily reclaimed in a bullish shift.

Chart patterns do not currently present a clear trajectory, awaiting clearer signals for directional bias.

In sum, the AUD/USD pairing reveals a bearish trend as long as it remains below the $0.6600 mark. The upcoming sessions are pivotal to determine if the Aussie can muster the strength to breach this threshold or if it will capitulate to lower support levels.

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Gold price (XAU/USD) maintained its upward momentum and drew some further bids around the $2,145 mark. Gold regained positive momentum on Tuesday, reversing the previous session's pullback from the all-time peak. However, the reason for its upward trend can be attributed to various factors, including speculation surrounding a potential Federal Reserve rate cut, decreasing US bond yields, a weaker US dollar, and an overall risk-off sentiment in the market.

Market Confidence in Fed Rate Cut Boosts Gold Prices Despite Powell's Cautious Remarks

Despite Federal Reserve Chair Jerome Powell's cautious comments on Friday, the market is inclined to believe that the US central bank is unlikely to raise rates further and may start rate cuts in the first half of the coming year. According to the CME Group's FedWatch Tool, there is a 60% probability of a rate cut by March 2024. This has led to a decline in the US Dollar and contributed to the gains in the gold price.

Fed Chair Jerome Powell, in a speech last Friday, suggested that it is too early to dismiss the possibility of additional rate increases or to initiate discussions about rate cuts. Despite Powell's cautionary remarks, investors remain firm in their belief that the US central bank has concluded its cycle of interest rate hikes and could potentially shift towards policy easing as soon as March 2024.

Traders are currently keeping a close eye on the US ISM Services PMI, expected to climb to 52 in November. However, the main focus is towards Friday's release of the US employment report (NFP), which is expected to offer insights into the job market.

Gold Prices Boosted by Geopolitical Tensions, China Epidemic Worries, and Caixin PMI Data

Another factor contributing to the upward movement in gold prices is the geopolitical tensions and concerns regarding a potential new epidemic in China. These concerns have overshadowed positive developments, including the improved business activity in China's services sector in November. Despite China's Caixin Services PMI surpassing expectations at 51.5, up from October's 50.4, it remains below pre-COVID levels.

Concurrently, the ongoing concerns about a downbeat global economic outlook have prompted investors to seek the safety of gold, a traditional safe-haven asset, leading them to move away from riskier investments.

GOLD (XAU/USD) - Technical Analysis

In the latest trading session, Gold (XAU/USD) has showcased a moderate upswing, with the current price nudging to $2038, reflecting a gain of 0.43%. The precious metal continues to oscillate around a pivotal juncture, as indicated by the 4-hour chart where the pivot point stands at $1975.

Technical levels have come into sharp focus with immediate resistance plotted at $2023, succeeded by $2049 and a more significant barrier at $2097. Conversely, immediate support steadies at $1949, with further cushions at $1923 and $1895, which may be tested should a downward trajectory ensue.

The Relative Strength Index (RSI), presently at 47, hovers below the midline, suggesting a neutral to slightly bearish market sentiment. However, the RSI’s position just below the bullish threshold hints at a latent potential for upward momentum should market conditions favor the bulls.

The 50-Day Exponential Moving Average (EMA) currently reads at $2045, further complicating the technical landscape as the price teeters around this crucial trend indicator, suggesting a tussle between bearish and bullish forces.

Chart analysis reveals no clear pattern at the moment, leaving the market's direction open to interpretation based on forthcoming economic indicators or market news that could sway sentiment.

In conclusion, while Gold appears bullish above the $2030 mark, the market awaits a catalyst to confirm this stance. Investors and traders will be watching closely for any moves to test the noted resistance levels in the days ahead, with the $2097 level serving as a litmus test for the metal's capacity to maintain its recent gains.

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