The AUD/JPY cross builds on the previous day’s goodish bounce from the 105.20 area, or over a one-week low, and gains strong follow-through positive traction for the second straight day on Tuesday. 🔗 Source 💡 DMK Insight The AUD/JPY’s bounce from 105.20 signals a potential trend reversal, and here’s why that matters: This pair’s recent strength could indicate a shift in risk sentiment, especially as traders look for safe havens amid global economic uncertainty. A sustained move above 106.00 could attract more buyers, potentially pushing the pair towards 107.00. Watch for any economic data releases from Australia or Japan that could impact this momentum. If the pair retraces back below 105.20, it might signal a false breakout, prompting traders to reassess their positions. Keep an eye on correlated assets like the Nikkei 225, as movements there could influence the AUD/JPY’s trajectory. However, be cautious; if broader market volatility spikes, it might lead to a quick reversal. The real story is whether this bounce can hold, so monitoring the daily close above 106.00 will be crucial for confirming bullish sentiment. 📮 Takeaway Watch for the AUD/JPY to hold above 106.00 for bullish momentum; a drop below 105.20 could signal a reversal.

Greece Current Account (YoY) dipped from previous €-1.088B to €-2.078B in November 🔗 Source 💡 DMK Insight Greece’s current account deficit widening to €-2.078B is a red flag for traders: This significant dip from €-1.088B indicates deteriorating economic conditions, which could impact the euro’s strength. A rising deficit often leads to currency depreciation as it suggests that a country is importing more than it’s exporting, putting pressure on the euro. For forex traders, this could mean adjusting positions on EUR/USD, especially if the trend continues. Watch for any upcoming economic data releases that might provide further insight into Greece’s trade balance and overall economic health. On the flip side, if the market overreacts, there could be a buying opportunity for those looking to enter long positions on the euro at lower levels. Keep an eye on technical levels around recent support zones, as a bounce back could signal a reversal. Monitoring the broader EU economic indicators will also be crucial, as they can influence sentiment towards the euro and Greece’s financial stability. 📮 Takeaway Watch for EUR/USD reactions around key support levels; Greece’s current account deficit could signal further euro weakness if trends persist.

Gold (XAU/USD) builds on its intraday breakout momentum above the $4,700 mark and continues scaling new all-time highs through the early European session on Tuesday. 🔗 Source 💡 DMK Insight Gold’s surge past $4,700 is a game changer for traders focused on safe-haven assets. With geopolitical tensions and inflation fears still looming, this breakout could signal a shift in market sentiment. Traders should keep an eye on how this affects correlated assets like ADA, which often sees increased volatility during gold rallies. If gold maintains its momentum, it could draw more institutional interest, potentially impacting crypto flows as investors seek stability. Watch for ADA’s response—if it holds above $0.36, it might indicate a stronger bullish trend, but a drop could signal profit-taking as traders reassess risk appetite. Here’s the thing: while gold’s rise is impressive, it could also lead to a pullback in riskier assets as traders seek to lock in gains. Monitor the $4,700 level closely; a sustained move above could reinforce bullish sentiment in gold, while ADA’s reaction will be telling of broader market dynamics. 📮 Takeaway Watch for ADA’s price action around $0.36; a hold above could signal bullish momentum, while a drop may indicate profit-taking amid gold’s rally.

EUR/USD bounced back into the mid-1.16–1.17 range as investors weighed renewed US–EU trade tensions and the potential impact of a Supreme Court ruling on tariff legality. 🔗 Source 💡 DMK Insight EUR/USD’s bounce into the mid-1.16–1.17 range signals a critical moment for traders. The renewed US–EU trade tensions are creating volatility, which can be both a risk and an opportunity. Traders should keep an eye on the Supreme Court ruling regarding tariff legality, as its outcome could significantly influence market sentiment and the currency pair’s trajectory. If tariffs are upheld, we might see a stronger dollar, pushing EUR/USD lower, while a ruling against tariffs could lead to a bullish run for the euro. Watch for key support around 1.1600 and resistance near 1.1700. A break below 1.1600 could trigger further selling pressure, while a sustained move above 1.1700 might attract bullish momentum. Given the current geopolitical climate, it’s crucial to stay agile and ready to adapt strategies based on news flow and market reactions. 📮 Takeaway Monitor EUR/USD closely around 1.1600 and 1.1700; the Supreme Court ruling could shift momentum significantly in either direction.

Gold (XAU/USD) keeps trading higher on Tuesday, reaching fresh record highs beyond $4,720, fuelled by the risk-averse sentiment as the trade rift between the US and the European Union concerning the status of Greenland escalates. 🔗 Source 💡 DMK Insight Gold’s surge past $4,720 signals a strong risk-off sentiment, and here’s why that’s crucial for traders right now: The escalating trade tensions between the US and EU, particularly regarding Greenland, are driving investors toward safe-haven assets like gold. This record high not only reflects immediate geopolitical concerns but also suggests a broader market anxiety that could lead to increased volatility in equities and other risk assets. Traders should keep an eye on how this tension evolves, as further escalation could push gold even higher, potentially testing psychological levels like $4,800. But let’s not overlook the flip side: if negotiations improve or if the economic data from the US shows strength, we could see a pullback in gold prices. Monitoring the daily close around $4,720 will be key; a sustained break above could trigger more buying, while a failure to hold this level might invite profit-taking. Watch for shifts in sentiment, especially from institutional players who could amplify these moves. 📮 Takeaway Keep an eye on gold’s daily close around $4,720; a break above could signal further upside, while a failure may lead to profit-taking.

The Nasdaq 100 is struggling to break through interim resistance at 25,870, hovering around its 50-day moving average amid a lack of clear directional momentum, Société Générale’s FX analysts note. 🔗 Source 💡 DMK Insight The Nasdaq 100’s struggle at 25,870 is a key moment for traders looking for direction. With the index hovering around its 50-day moving average, the lack of momentum suggests indecision in the market. This resistance level is critical; a breakout could signal a bullish trend, while failure to breach it might lead to a pullback. Traders should keep an eye on volume indicators—if we see increased buying pressure, it could confirm a breakout. Conversely, if selling picks up, it might be time to reassess long positions. The broader market context, including economic data releases and interest rate expectations, could also play a significant role in the Nasdaq’s next move. Watch for any news that might impact tech stocks, as they heavily influence the index’s performance. 📮 Takeaway Monitor the Nasdaq 100 closely at the 25,870 level; a breakout could lead to bullish momentum, while a rejection might trigger a sell-off.

Copper rebounded toward $13,000/t as a weaker dollar and China meeting its GDP target lifted sentiment in industrial metals, ING’s commodity experts Ewa Manthey and Warren Patterson note. 🔗 Source 💡 DMK Insight Copper’s bounce back toward $13,000/t is more than just a number—it’s a signal of shifting market dynamics. The weaker dollar is making commodities like copper more attractive, especially as China hits its GDP target. This dual effect is likely to draw in both retail and institutional investors looking for exposure to industrial metals. Traders should keep an eye on the $13,000 level; a sustained break above could trigger further bullish momentum, while a failure to hold might lead to profit-taking. Additionally, watch for related assets like aluminum and nickel, which often move in tandem with copper, as they could amplify or dampen the overall sentiment. However, it’s worth noting that while the immediate outlook seems positive, underlying economic indicators—like inflation rates and global demand—could shift sentiment quickly. So, keep your charts handy and monitor the daily price action closely for any signs of reversal or continuation. 📮 Takeaway Watch for copper to maintain momentum above $13,000/t; a break could signal further gains, while a drop below may prompt profit-taking.

Spain 3-Month Letras Auction: 1.954% vs previous 1.974% 🔗 Source 💡 DMK Insight Spain’s latest 3-month letras auction saw yields drop to 1.954%, a slight decline from the previous 1.974%. This reduction in yield could signal a shift in investor sentiment, potentially reflecting increased demand for safer assets amid global economic uncertainties. For traders, this is a crucial indicator to watch, as lower yields often correlate with a stronger euro and can influence forex positions. If the trend continues, we might see a ripple effect across European bond markets, impacting related assets like German bunds and Italian BTPs. However, it’s worth noting that while lower yields can indicate a flight to safety, they may also suggest that investors are bracing for slower economic growth. Traders should keep an eye on upcoming economic data releases and central bank communications, as these could provide further clarity on the direction of yields and the broader market. Watch for any significant moves in the euro against the dollar, especially if it breaks key resistance levels in the coming days. 📮 Takeaway Monitor the euro’s reaction to the lower yield; a break above key resistance could signal bullish momentum.