News & Analysis / Analysis / A Weak Dollar Is the Driver of Price Records for NASDAQ-100, BTC/USD, XAU/USD

A Weak Dollar Is the Driver of Price Records for NASDAQ-100, BTC/USD, XAU/USD

FXOpen

Financial market participants expect an easing of the Fed's monetary policy. The prospect of lower rates puts pressure on the value of the dollar, which in turn pushes up dollar-denominated assets. This contributed to the setting of record highs:

→ The price of BTC/USD exceeded 70k dollars per bitcoin
→ The price of XAU/USD exceeded USD 2,200 per ounce of gold
→ The NASDAQ-100 index reached 18,400 points.

But are markets too optimistic? Let's see what the technical analysis of the NASDAQ-100 chart shows today:

→ The price is in an uptrend (shown in blue), which has been in effect since the beginning of the year. The price is in the upper half, which may indicate the strength of demand.
→ Top C only slightly exceeded the level of the previous top A. It is not surprising that a bearish divergence has formed on the oscillators — Awesome Osc among them. Buyers who entered long positions at the breakout of top A found themselves in a trap. Sellers who held stops above A lost their positions.

Pay attention to the nature of the NASDAQ-100 price movement from tops to local lows A→B and C→D. Each time, the bears were able to quickly lower the price as soon as it exceeded the 18.333 level. This indicates that sellers are active — perhaps they are taking profits after the rally since the beginning of the year.

One way or another, the level of 18.333 looks like an important resistance. So far, the price of NASDAQ-100 is at support from the median line of the channel, but it is possible, given the signs of exhaustion of demand and the activity of sellers, that the price may fall to its lower border, forming a correction. This may happen under the influence of news — today, be prepared, at 15:30 GMT+3 data on inflation in the United States will be published.

Trade global index CFDs with zero commission and tight spreads. Open your FXOpen account now or learn more about trading index CFDs with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Instrument
Live ECN bid
Live ECN ask
Action
EURUSD
1.08777
1.08803
Trade
GBPUSD
1.29275
1.29374
Trade
AUDUSD
0.63223
0.63247
Trade
USDJPY
148.620
148.645
Trade
USDCAD
1.43605
1.43721
Trade
More
Index CFD Trading with FXOpen

Index CFD Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Trade with tight spreads
  • Take advantage of zero commission
  • Choose from 4 trading platforms: MT4, MT5, TradingView, or TickTrader
Learn more

Latest articles

Shares

Intel (INTC) Shares Surge by Approximately 14%

As shown in the Intel (INTC) stock chart:

→ Trading opened yesterday with a strong bullish gap.
→ By the end of the session, shares had risen by approximately 14% compared to the previous day's closing price.

According to Dow Jones Market

Commodities

Gold Price Nears $3,000 for the First Time in History

As shown in the XAU/USD chart today, gold is at a record high, just $5 away from the key psychological level of $3,000. Moreover, on the futures market, COMEX data indicates that gold futures have already surpassed this

What Is Dollar-Cost Averaging (DCA) in Investing and Trading?
Trader’s Tools

What Is Dollar-Cost Averaging (DCA) in Investing and Trading?

Dollar-cost averaging (DCA) is a popular strategy used by investors and traders to manage market fluctuations and build positions over time. Instead of trying to time the market, DCA focuses on consistent, regular investments regardless of price movements. This article

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.