Market Update - 04 December 2023

EUR/USD attracts some sellers under the 1.0900 psychological mark on Monday. The bullish outlook of EUR/USD looks vulnerable; RSI indicator stands below the 50.0 midline. The 1.0900–1.0910 zone acts as an immediate resistance level; the initial support level is seen at 1.0827. (FXStreet)

The index looks slightly bid around 103.30. US yields look to recovery from Friday’s decline. Factory Orders come next in the US docket. The greenback, when tracked by the USD Index (DXY), manages to pick some mild upside traction around 103.30. (FXStreet)

GBP/USD loses ground as the USD trades with mild gains on Monday. The markets were confident the rate-hike cycle was done, although Powell emphasized the Fed's willingness to tighten policy further if necessary. UK S&P Global/CIPS Manufacturing PMI climbed to 47.2 in November vs. 46.7 prior, better than expected. (FXStreet)

EUR/GBP was seen at 0.856 with a downside movement of 0.70%, it lowest since early September. In the daily and 4-hour chart, indicators hit oversold conditions after a seven-day losing streak. The cross will also close a 1.40% weekly loss.(FXStreet)

The EUR/CHF is down in a three-day bear binge. Euro chart action is decidedly one-sided as the EUR falls back across the board on the week. Next week sees Eurozone PPI, GDP growth. (FXStreet)

EUR/JPY records significant weekly losses, closing down by more than 2.20%. A key focus for traders is the Ichimoku Cloud support around the 158.00 level, which could accelerate the downtrend toward 154.00. For a shift back to bullish resumption, EUR/JPY must reclaim the Kijun-Sen at 161.00 and surpass the rece. (FXStreet)

GBP/JPY experiences a decline of 0.24% as Friday’s session ends. Key support levels for GBP/JPY include 185.63 (Senkou Span A) and the 185.00 psychological mark, with further support at 184.71 (Kijun-Sen). On the upside, resistance is seen at 187.00, with a break above potentially targeting 188.00 and the November 24 high at 188.66. (FXStreet)

AUD/USD retreats after touching over a fresh five-month top during the Asian session on Monday. The cautious market mood underpins the safe-haven USD and weighs on the risk-sensitive Aussie. The technical setup favours bullish traders as the focus shifts to the RBA policy meeting on Tuesday. (FXStreet)

NZD/USD gains ground near 0.6210 on the USD weakness. New Zealand’s Terms of Trade Index for the third quarter (Q3) fell 0.6% QoQ vs. 0.3% prior. Fed Chair Jerome Powell said it was premature to rule out additional rate hikes or start discussing cuts. (FXStreet)

Crude Oil rises, then tumbles again in frothy energy markets. WTI backslides into $74.50 in exacerbated market volatility. OPEC production cuts unlikely to eat away at oversupply amidst declining demand. (FXStreet)

Gold price witnessed an intraday turnaround from an all-time peak touched this Monday. An uptick in the US bond yields revives the USD demand and prompts some profit-taking. Geopolitical tensions, looming recession risks and Fed rate cuts should limit further losses.(FXStreet)

Silver is threatening to test YTD highs after reaching a multi-month high. For that outcome, XAG/USD needs to rally above the $26.00 figure. XAG/USD could turn bearish if it drops below the $25.00 mark. (FXStreet)

Source: FXStreet, DailyFX

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