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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Market update: EUR/USD, USD/JPY, S&P 500, gold – forecast and key technical levels ahead

Explore the forecasts and crucial technical levels for EUR/USD, USD/JPY, gold, and S&P 500. Dive into detailed technical analyses with insights on potential market movements.

Source: Bloomberg

EUR/USD technical analysis

EUR/USD retreated on Thursday but managed to stay above its 200-day simple moving average at 1.0840. For sentiment around the euro to improve, this floor must hold; failure to do so could result in a pullback towards 1.0770. On further weakness, all eyes will be on the 1.0700 handle.

On the flip side, if bulls stage a comeback and trigger a reversal to the upside, resistance extends from 1.0910 to 1.0930. If history is any guide, prices could be rejected from this technical area on a retest; however, a successful breakout could open the door to a rally toward 1.1020.

EUR/USD daily chart

Source: TradingView

USD/JPY technical analysis

USD/JPY rallied earlier in the week, but its bullish momentum faded on Thursday, paving the way for some directionless price action. With the pair approaching overbought levels, it wouldn’t surprise to see some consolidation or even a small pullback in the coming days.

In the event of a bearish reversal, support appears at 147.25, around the 100-day simple moving average. Further losses from this point onward could expose 146.00. On the other hand, if the exchange rate reaccelerates to the upside and breaks above 149.00, a retest of the psychological 150.00 level could be around the corner.

USD/JPY daily chart

Source: TradingView

Gold price technical analysis

Gold pivoted higher on Thursday, pushing past $2,010 and recapturing its 50-day simple moving average, a positive signal for the precious metals. If the recovery extends in the days ahead, technical resistance emerges at $2,045-$2,050, followed by $2,085.

Conversely, if sellers return and rekindle bearish pressure, traders should keep a close eye on the $2,010 area, bearing in mind that a move below it could pave the way for a descent towards $1,990 and $1,975 thereafter. If weakness persists, XAU/USD may gravitate towards its 200-day simple moving average.

Gold daily chart

Source: TradingView

S&P 500 technical analysis

After a subdued performance earlier in the week, the S&P 500 rallied on Thursday, reclaiming the 4,800 level in the process. Despite this turnaround, the emergence of a double-top pattern on the daily chart continues to be a cause for concern for the bullish camp.

A double top is a bearish technical formation, characterized by two analogous peaks with a valley in between. The setup is validated once prices complete their "M"-like shape and breach the support level established by the intermediate trough, known as the neckline.

Quantifying the potential magnitude of the downward retracement following confirmation involves vertically projecting the double top's height from the break point. In the case of the S&P 500, the neckline is identified at 4,700. This means a move below this area could usher in a pullback towards 4,550.

Although traders should exercise caution, it is important to note that the double top would be negated if the S&P 500 prints a higher high and sets a new record. This scenario could pave the way for a climb towards 4,900.

S&P 500 daily chart

Source: TradingView

This information has been prepared by DailyFX, the partner site of IG offering leading forex news and analysis. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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