EUR/USD already poised for a rebound?
The major FX pair's strong depreciation culminated in a new multi-month low in the previous trading week. On Thursday, at the European Central Bank's (ECB) key interest rate meeting, the currency pair slid to USD 1.081.
The market expected the 0.25 basis point cut in the key interest rate, and yet the EUR/USD fell to its lowest level since early August. Nevertheless, the time for a countermovement may have come, so a recovery movement should not come as a surprise. If there are no new reaction lows, an appreciation towards 1.0910 to 1.0946 USD appears possible. In the 1.1000 USD range, the air would become noticeably thinner again.
If the depreciation pressure persists, however, a test of the one-year upward trend line since October 2023 around 1.0790 USD would have to be expected below 1.0810 USD. A breakthrough cannot be ruled out, which could result in losses towards 1.0700 USD.
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Bitcoin (USD) is full of strength
The bulls see their chance. With a strong weekly performance, the mother of all cryptos rose again towards USD 70,000. The continuation of the buying pressure will now be crucial to crowning the recovery trend with new multi-week highs.
With the consistently bullish development of the last few trading days, the signs for further performance are favorable. If the sustainable breakout above $68,578 is successful, further price increases toward the round mark of $70,000 and the resistance of $71,611 should only be a stopover on the way to new highs. If Bitcoin cracks the high from spring, targets of $75,000 to $80,000 per coin will be activated.
If, contrary to expectations, the momentum that has emerged weakens, increased caution would be advised, especially for prices below USD 65,800. The possible breakout attempt would rather reverse and promise falling prices to USD 62,470 and possibly lower to USD 60,184.
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NASDAQ100 with new multi-week high
Last week's volatility weighed on the US tech index. Although a new multi-week high was reached, follow-through buyers failed to materialise, leaving a volatile trading week.
Despite the slight consolidation following the fresh multi-week high, the upward trend is still to be seen as intact. The setting of the record high is therefore only a matter of time. Consequently, the bulls should also triumph in the coming trading week and be able to push the index towards the 21,000-point level.
On the other hand, should the consolidation extend, a further drop to the support at 19,751 points would have to be expected in the event of a drop below 20,037 points. Below this, a sell signal would be conceivable with losses to 18,800 points, before the level of 18,417 points would be waiting below that.
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Wells Fargo charges towards record level
It seems not a question of if, but rather when, the Wells Fargo stock will reach new record highs. On 10 October, the stock initiated this current rally by overcoming the then resistance at USD 58.49.
Due to the momentum that has been built up, the stock has the chance to march straight through to its all-time high of USD 66.31 from January 2018. Above USD 62.55, the situation remains bullish and the setting of the previous record can be assumed. Setbacks in this direction could be bought procyclically in order to participate in a subsequent price increase.
The recent strong gains invite sharper countermovements. Especially below USD 60.97, one would have to expect lower prices up to the upward trend line since September at USD 58.37.
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