Bitcoin rebound analysis today – what traders and investors should focus on after a 21% surgeHave a good week, crypto traders and investors. I know many of you are wondering if the rebound we started seeing on ate Thursday and Friday is the real thing or not. I will start with my video before diving into additional aspects.Bitcoin futures are trading near $71,155, extending a sharp rebound that started late last week. From the recent futures low near $60,005, price has already advanced more than 21% in roughly 48 hours, which is a significant move by any standard, especially after a prolonged bearish phase.This type of rebound naturally raises a key question for traders and investors alike:Is Bitcoin starting a genuine base for a larger recovery, or is this simply a fast counter-trend bounce that still needs to be tested?This update blends Bitcoin technical analysis, price-based decision levels, and underlying market participation insights to help frame that question more clearly.Market snapshot – where Bitcoin stands right nowThe broader crypto market remains fragile after weeks of downside pressure, but Bitcoin has clearly stabilized for now. Price is currently trading above recent value zones, and importantly, it has stayed well above its most recent session VWAPs since Friday.That tells us one thing with confidence: The rebound is being respected so far. Sellers have not been able to immediately push price back into the lower part of the range.However, after a move of this size, the real information does not come from the rally itself. It comes from how Bitcoin behaves on the next pullback.What underlying activity suggests about the rebound in Bitcoin FuturesFrom a participation perspective, selling pressure has lost efficiency.Earlier in the decline, downside attempts were accepted quickly, with price moving lower without much resistance. That dynamic has shifted. Over the last several sessions:Downside pushes have struggled to gain follow-throughBuyers have shown up faster on pullbacksPrice has remained elevated relative to recent session benchmarksThis does not automatically mean a new bull trend has started. What it does suggest is that the market has moved from forced liquidation into two-sided trade, which is often the first step in base-building.For newer traders, this is an important concept:Markets rarely move directly from bearish to bullish. Most major transitions go through a trading range phase, where price oscillates up and down while stronger participants accumulate gradually.Key Bitcoin price levels to watch – specific and actionable zonesFirst support zone – re-entry into value$67,750 to $67,165This is a very tight and important area defined by recent VWAPs.If Bitcoin pulls back from current levels and holds this zone, it would be a healthy sign that buyers are defending value.If price re-enters this zone and then fails to reclaim it, that would suggest the rebound is losing structure and slipping back toward balance.In simple terms for beginners: This is where the market decides whether the rebound is being bought or faded.Secondary support for Bitcoin Futures – accumulation logic$65,600This level sits below the first VWAP cluster and represents a deeper pullback zone that often becomes relevant during base-building.If this rebound is part of a larger transition, buyers may prefer to accumulate on legs down, not at highs. This area fits that behavior well.Deeper support for Bitcoin Futures – major bull priority$63,855If price loses $65,600, this becomes the next critical area.If bulls are serious about defending the broader rebound, this is where participation would need to increase meaningfully. Failure here would significantly weaken the bullish case.Upside magnet and resistance for for Bitcoin futures today (or this week)$74,970 to $75,000This zone aligns with multiple prior reference levels and acts as a clear price magnet.A sustained move into and acceptance above this area would strengthen the case that Bitcoin is shifting from rebound into early recovery.A sharp rejection here would not be surprising and would likely trigger profit-taking and a rotation back toward support.Longer-term vs recent behavior in crypto – why this mattersFrom a longer-term perspective, Bitcoin, as the known leader of crypto, is still repairing damage from the broader downtrend. That has not disappeared overnight.From a shorter-term perspective, behavior has improved meaningfully. The market is no longer cascading lower, and rebounds are being respected.When these two views conflict, markets often resolve that tension through range development, not immediate continuation in either direction.Educational takeaway for newer tradersOne of the most common mistakes newer participants make is expecting a straight-line recovery after a sharp selloff.Professional participants typically:Accumulate during pullbacksScale in over timeDefend value areas, not chase highsIf this rebound is real, it will likely survive multiple pullbacks. If it cannot survive even the first meaningful retracement, it was probably just a bounce.Market bias score for BitcoinMarket bias score: +2 (slightly bullish, still cautious)This reflects improving balance and reduced downside pressure, but not a confirmed trend reversal. The score would improve if price holds above the VWAP support zone during a pullback, and weaken if acceptance develops below it.Trade management example – ETH long update (educational)To illustrate risk management during rebounds, here is an updated example from the channel, shared for educational purposes only.ETHEREUM (ETH) – LONG-TERM BUY PLAN (UPDATE)All buy orders were filled:1,9651,8941,826Average entry: 1,895Original stop: 1,716 Updated stop: moved to average entry at 1,895Take profit adjustment:TP1 was lowered to 2,092TP1 has already been takenRemaining position is now effectively risk-managedThis is a common approach during sharp rebounds: reduce risk early, secure part of the move, and allow the remainder to participate if the larger recovery develops.What would change the Bitcoin viewSustained acceptance below $67,165Failure of buyers to respond on deeper pullbacksRenewed downside follow-through across recent sessionsWith a score of +2 from the investingLive orderFlow Intel, the bulls are looking a little better than the bears, at the time of this analysisRisk note for crypto traders and investorsThis analysis is intended for educational and decision-support purposes only. It is not financial advice. Crypto markets are volatile, and all trading and investing decisions carry risk.For real-time trade ideas, follow-ups, and market insights across stocks, indices, commodities, and crypto, check out the investingLive Stocks Telegram channel.

There are some chunky expiries that stand out on the day but none of which are likely to be of any impact. The full list can be seen below.There are some large ones for EUR/USD and AUD/USD in particular, holding at the 1.1900 and 0.6900 levels respectively.The former is the most likely to be of any note, with the dollar weakening across the board as broader market sentiment picks up again after a rocky mood last week. Precious metals are back on the up and risk sentiment also bounced back on Friday with some steadier signs today.The expiries don’t tie to any technical significance, so it could just act on its own as a ceiling for price action. That is if we see a material dollar drop in the session ahead. In that lieu, do keep an eye out for USD/JPY as intervention risks are now as high as ever after the weekend election in Japan. It feels like a case of any time now for Tokyo to step in.As for the larger expiries in AUD/USD, they should not factor into play given what we’re seeing with price action currently. So, I wouldn’t attach much significance to that; all else being equal in markets.For more information on how to use this data, you may refer to this post here.Head on over to investingLive (formerly ForexLive) to get in on the know! This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight With sizable expiries at 1.1900 for EUR/USD and 0.6900 for AUD/USD, traders should pay attention to potential volatility around these levels. These expiries could create a tug-of-war effect as market participants adjust their positions leading up to the expiration. If EUR/USD approaches 1.1900, expect increased activity as traders hedge or speculate on price movements. Similarly, for AUD/USD at 0.6900, a breach could trigger stop-loss orders or attract new buyers, amplifying price swings. Keep an eye on the daily charts for breakout patterns or reversals as these levels are tested. However, it’s worth questioning whether the market is overreacting to these expiries. If the broader trend remains strong, these levels might just serve as temporary hurdles rather than definitive barriers. Watch for any economic data releases or geopolitical news that could influence sentiment and lead to unexpected moves around these expiries. 📮 Takeaway Monitor EUR/USD at 1.1900 and AUD/USD at 0.6900 for potential volatility; these levels could trigger significant trading activity as expiries approach.

The stakes don’t get any higher than this, at least in terms of US economic data releases. In the days ahead, we will be getting the US retail sales, labour market report, and the consumer price inflation report; all within a span of 72 hours.Typically, you’d see all three reports get spread out across two or three weeks even. However, the short US government shutdown at the turn of the month has kicked the retail sales and jobs data to this week. And that makes it a trifecta of key economic releases that will come from the US in the days ahead.Amid the more volatile and turbulent market environment, the jumbling up of economic data here will just add to another volatility cluster for markets to deal with.Things will kick off on Tuesday with the US retail sales data first, which will provide us with some indication of the holiday shopping season. If anything, we can expect the US consumer to continue to stay resilient as it has been last year. This is one spot that hasn’t been worrying the Fed all too much, allowing them to keep flexibility in holding interest rates.Then on Wednesday, we’ll get the first key one in the rescheduled US labour market report. The non-farm payrolls headline is expected to see a bump in jobs to 70k, up from 50k in December. Meanwhile, the unemployment rate is expected to hold unchanged at 4.4% in January.The latest US government shutdown is not one to disrupt the data here, so don’t expect any excuses to deny data plausibility here. With the Fed looking for signs of softening labour market conditions and inflation developments as key reasons to cut interest rates further, this will be one of two key areas to pay attention to.If anything, do also keep an eye on the average hourly earnings as any signs of wage push inflation will also be a consideration for the Fed.Before we get to the next big data release, there is the weekly initial jobless claims on Thursday. So, that will add to the mix of labour market numbers as well on the week.And lastly on Friday, there will be the US consumer price inflation (CPI) report. The estimates point to a slight cooling in price pressures with headline annual inflation expected at 2.5%, down from 2.7% in December. Meanwhile, core annual inflation is also expected at 2.5% in January. That will be a marginal decline from the 2.6% estimate in December.The month-on-month figures will also be ones to watch with both headline and core estimated to show a 0.3% increase. If we do see some hotter numbers here and perhaps stickier annual estimates, that will likely put to be any lingering hopes of a rate cut in 1H 2026.As things stand, traders are still pricing in ~54 bps of rate cuts by the Fed for this year. The next full 25 bps rate cut is priced in for July but odds of a move in June are at ~92% currently. This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight With major US economic data dropping in the next 72 hours, traders need to brace for volatility. The retail sales, labor market report, and consumer price inflation figures are critical indicators that can sway market sentiment and impact asset prices significantly. If retail sales come in stronger than expected, it could signal consumer resilience, potentially boosting equities and the dollar. Conversely, weak labor data or rising inflation could trigger risk-off sentiment, leading to sell-offs in stocks and a flight to safety in bonds or gold. Traders should keep an eye on key levels in the S&P 500 and major currency pairs like EUR/USD, as these reports could lead to breakouts or reversals. Here’s the kicker: while the mainstream narrative often focuses on immediate reactions, the longer-term implications of these reports can shape market trends for weeks. So, if you’re in the market, be ready to adjust your strategies based on the outcomes of these releases. Watch for the S&P 500 to hold above or below its recent support levels, and keep an eye on the dollar index for potential shifts in momentum. 📮 Takeaway Watch the upcoming US economic reports closely; strong retail sales could boost equities, while weak labor data might trigger a sell-off.

FUNDAMENTAL OVERVIEWGold continues to consolidate between major technical levels as traders await the US NFP and CPI reports later in the week. The fundamentals are still against rising prices due to improving US data and easing geopolitical tensions. This Wednesday, we will get the US NFP report and that’s going to be very important for gold. In fact, the market is pricing 54 bps of easing for the Fed this year, so there’s a high risk of a hawkish repricing in case the data comes out strong. In such a scenario, we will likely see gold selling off.On the other hand, a weak report should strengthen the case for more Fed easing and might even see traders bringing forward rate cut bets as some Fed members expressed scepticism about labour market stabilisation. In that case, gold will likely find a tailwind to rally into new highs.GOLD TECHNICAL ANALYSIS – DAILY TIMEFRAMEOn the daily chart, we can see that gold continues to consolidate above the trendline as traders await new catalysts for the next major move. If we get another flush into the trendline, we can expect the buyers to step in with a defined risk below it to position for a rally into a new record high. The sellers, on the other hand, will look for a break lower to increase the bearish bets into the 3887 level next.GOLD TECHNICAL ANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we can see that we have a resistance zone around the 5100 level. We can expect the sellers to step in around the resistance with a defined risk above it to position for a drop into the trendline targeting a breakout. The buyers, on the other hand, will look for a break higher to pile in for a rally into new all-time highs.GOLD TECHNICAL ANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, there’s not much else we can add here as the sellers will look for a rejection around the resistance, while the buyers will look for a break. The red lines define the average daily range for today. UPCOMING CATALYSTSTomorrow we get the US December Retail Sales and the US Employment Cost Index data. On Wednesday, we have the US NFP report. On Thursday, we get the US Jobless Claims figures. On Friday, we conclude the week with the US CPI report. This article was written by Giuseppe Dellamotta at investinglive.com. 🔗 Source 💡 DMK Insight Gold’s consolidation around key levels signals indecision, but here’s why that matters for traders: With the current market snapshot showing SOL at $83.32, traders are eyeing the upcoming US NFP and CPI reports, which could shift market sentiment significantly. Strong data could bolster the dollar, putting downward pressure on gold prices, while weak data might ignite a rally. The geopolitical landscape is stabilizing, which typically dampens gold’s appeal as a safe haven. Traders should watch the $1,800 level closely; a break below could trigger further selling, while a bounce could indicate renewed buying interest. Additionally, SOL’s performance might be influenced by gold’s movements, as both assets often attract similar investor profiles. Keep an eye on correlations between gold and SOL, especially if gold breaks out of its current range. In this environment, it’s crucial to monitor the NFP and CPI releases closely. They could set the tone for the week and impact not just gold, but also broader market sentiment, including cryptocurrencies like SOL. 📮 Takeaway Watch for gold’s reaction around $1,800 post-NFP and CPI; a break could impact SOL’s trajectory significantly.

Monday is quiet in terms of scheduled economic events for the FX market. The focus will be on the Japanese yen following the lower house elections. Japan’s Prime Minister Sanae Takaichi secured a two-thirds “supermajority” in Sunday’s general election, according to Nikkei projections. The decisive victory gives the country’s first female leader a strong mandate to address cost-of-living pressures and pursue her national security agenda. The JPY started to strengthen when the market opened on Monday following the news. On Tuesday, attention will turn to the U.S. with the release of retail sales m/m data, which was delayed by 27 days due to the U.S. government shutdown. Wednesday will bring key U.S. labor market data, including average hourly earnings m/m, nonfarm payrolls, and the unemployment rate. These releases were originally scheduled for last Friday but were also postponed due to a brief government shutdown. The consensus expects average hourly earnings to rise 0.3% m/m versus 0.3% previously, nonfarm payrolls to increase by 70K vs. 50K prior, and the unemployment rate to remain steady at 4.4%. On Thursday, the U.K. will publish monthly GDP and preliminary quarterly GDP figures, while the U.S. releases weekly unemployment claims. Finally, Friday’s highlight will be the U.S. inflation data. In the U.S., the consensus for retail sales m/m is 0.4% versus 0.6% previously, while core retail sales m/m are also expected at 0.4% versus a prior 0.6%. November retail sales surprised to the upside, pointing to resilient consumer demand late in Q4. However, more recent indicators suggest that spending momentum softened in December. This likely reflects cooler labor market conditions and ongoing affordability pressures, which appear to be weighing on discretionary purchases. Looking ahead, Wells Fargo analysts expect retail sales growth to see some improvement due to more favorable household tax policy that will drive more spending. In the U.K., the consensus for GDP m/m is 0.1% versus 0.3% previously, while preliminary GDP q/q is expected at 0.2% versus 0.1%. The data is expected to show only moderate growth toward the end of last year, with the outlook on both a quarterly and annual basis remaining subdued. At last week’s BoE meeting, the tone was dovish, and expectations have since shifted toward the possibility of consecutive rate cuts starting as early as March. Inflation has continued to slow, and policymakers expect it to move back toward the 2.0% target. If this week’s GDP data surprises to the downside it will further reinforce the case for policy easing. In the U.S., the consensus for core CPI m/m is 0.3% versus 0.2% previously; headline CPI m/m is expected at 0.3% compared to 0.3% prior, while CPI y/y is forecast to drop from 2.7% to 2.5%. The release is delayed by two days. Core inflation is expected to firm, partly reflecting residual seasonality. Additional drivers include delayed cost pass-through from tariffs, inventory rebuilding, and firms pushing through price increases where demand allows. Both core goods and core services are projected to post similar monthly gains, with firmer used-vehicle prices offsetting softer readings in areas such as healthcare and auto insurance, according to Wells Fargo analysts. The decline in headline inflation is largely attributed to slower food price increases and lower fuel costs, even as energy services inflation remains firm. While some private-sector measures point to a notable cooling in recent months, risks of persistence remain in the official data. Rising import prices and the lagged pass-through from tariffs suggest consumer prices could still face upward pressure, particularly as tariff costs continue to be absorbed by U.S. importers. Although firms may offset part of these increases through efficiency gains, further transmission to end prices cannot be ruled out, ING analysts said. At the same time, easing energy costs and slower growth in housing rents should help contain overall inflation pressures. This article was written by Gina Constantin at investinglive.com. 🔗 Source 💡 DMK Insight Japan’s election results could shake up the yen, and here’s why you should care: With Prime Minister Sanae Takaichi’s supermajority, expect potential shifts in monetary policy that could impact the yen’s value. Traders should keep an eye on how this political stability influences the Bank of Japan’s stance on interest rates. If Takaichi pushes for more aggressive economic reforms, we might see the yen strengthen against major currencies. Conversely, if the market perceives a lack of action, the yen could weaken further. Watch for key technical levels around recent support and resistance points, as they could signal the next move. Also, consider how this might ripple through related assets like USD/JPY and even equities, as a stronger yen could pressure export-driven stocks. But don’t overlook the flip side: if global risk sentiment shifts, the yen could act as a safe haven, complicating the picture. Keep an eye on the 110.00 level for USD/JPY as a potential pivot point. If it breaks, we could see a more pronounced trend develop. Stay alert for any comments from the Bank of Japan in the coming days that could provide further clarity on their direction. 📮 Takeaway Monitor USD/JPY around the 110.00 level; a break could signal a stronger yen if Takaichi’s policies gain traction.

Cryptocurrencies have endured a bit of a torrid last few weeks and things are starting out the same way again this week. Bitcoin caught a modest bounce on Friday, having come close to a low of $60,000 to jump back up above the $70,000 mark. But after that, price action has been rather lethargic since the weekend with the highs failing to breach the $72,000 level.And as we get things going today, there is some exhaustion as we see a dip back under the $70,000 mark after a brief consolidation in the past 24 hours or so.The drag takes out the $70,000 mark and will start to threaten a potential drop back under the 100-hour moving average (red line). That’s a key line in the sand in the near-term chart, seen at around $68,895 currently. Hold above that and the near-term bias keeps more neutral but break below and it turns more bearish once again.The pressure showing up in cryptocurrencies has been rather strong in the past few weeks, prompting some concerns. It’s not the first time that we have seen this sort of flush cycle in cryptocurrencies but the drop since peaking in October last year has been a painful one for the HODLers.The past three weeks alone has observed a decline of over 20% with the fall from the October 2025 peak seen at roughly 45%. All things considered, it’s not the worst of episodes for Bitcoin.In late 2021 to the middle of 2022, the cryptocurrency plunged by over 70% in what looked to be “the end of the road”. Yet, here we are today.But if there’s any debate about Bitcoin replacing gold as the number one market hedge preference for all things, that argument is clearly settled now in the last six months.Circling back to Bitcoin price action above, it’s all about the key near-term level highlighted. A firm break below that frees up space for another potential drop back to $60,000. That especially on a break under some minor support at $68,000 currently. And for this week itself, a barrage of US economic data releases might act as the trigger. So, watch out for that. This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight Bitcoin’s recent bounce above $70,000 is a crucial moment for traders to assess market sentiment. After nearing $60,000, this recovery could signal a potential reversal or just a temporary relief rally. Traders should watch for resistance levels around $72,000, where selling pressure may re-emerge. If Bitcoin can hold above this mark, it might attract more buyers, especially with the broader crypto market showing signs of volatility. However, if it fails to maintain this level, we could see a retest of the lows, which would be a red flag for bullish positions. Keep an eye on trading volume and market sentiment indicators; a spike in volume could confirm a trend reversal, while low volume might suggest a lack of conviction in the rally. The next few days will be critical in determining whether this bounce is sustainable or just a fleeting moment in a bearish trend. 📮 Takeaway Watch for Bitcoin to hold above $72,000 this week; failure to do so could signal a deeper pullback.

Will examine the schedule and funding of plan to suspend sales tax on food by two yearsWill not resort to debt issuance to fund suspension of sales tax on foodTo seek the such measures at the earliest date possible by securing non-tax revenues, reviews to subsidiesMust pull Japan out of excessively tight fiscal policy stateA more proactive fiscal policy will be a key component of the administration’s policy transitionThis is going to be her biggest math problem to deal with. There’s roughly a ¥5 trillion hole annually that needs to be filled if she is to pursue this two-year food sales tax suspension. And there are no easy avenues on how to go about it.The simplest way is to break open the piggy bank and dive into Japan’s foreign currency reserves. However, that will be widely shun upon by markets as these are funds that are usually reserved for currency intervention. So, there’s that.Otherwise, it is going back about the traditional way in focusing on tax revenue i.e. corporate tax, and also pulling the plug on ineffective subsidies and programs.And even if she hides behind a tax surplus to fund this suspension of the food sales tax (instead of using it to pay down debt), it is effectively what one can describe as “shadow borrowing” as you are choosing to keep debt at a higher level than it would be. Essentially, this is also part of the Takaichi trade amid concerns that Japan’s national debt will explode higher.It’s tough to figure how she wants to go about this to satisfy all parties. But if she can’t appease markets, that is going to be a problem if the yen currency and Japan government bond yields continue to crumble under the weight of the pressure. This article was written by Justin Low at investinglive.com. 🔗 Source

Prior -1.8That marks a third straight month of improving sentiment in the euro area, with some good news in the opening two months of 2026 at least. This is the first positive reading since July last year, reaffirming some added optimism as we get into the new year. Of note, the expectations index also rose to 15.8 – up from 10.0 in the previous month.Looking at the details further, Germany continues to show a marked improvement in sentiment. The index for the German economy rose to -6.9, its highest since July last year. That’s encouraging with Sentix noting that “this could mean the end of the recessionary phase of the German economy”.And overall for the region, “an upturn seems to have begun”. We’ll see but the nascent signs of the resilient recovery is looking decent. This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight So, euro area sentiment just turned positive for the first time since July last year, and here’s why that matters: improving sentiment can lead to increased consumer spending and investment, which are crucial for economic recovery. This uptick might influence the ECB’s monetary policy decisions, especially if it continues in the coming months. Traders should keep an eye on how this sentiment shift impacts the euro against major currencies like the USD, especially if it leads to a stronger euro. But don’t get too carried away—this is just one data point. The broader economic context still includes inflation concerns and geopolitical tensions that could dampen this optimism. If sentiment continues to rise, watch for potential resistance levels around recent highs in EUR/USD, which could signal a stronger bullish trend. For now, monitor the upcoming economic indicators and ECB statements closely; they could provide further clarity on whether this sentiment shift is sustainable or just a temporary blip. 📮 Takeaway Watch for continued positive sentiment in the euro area; if it holds, EUR/USD could test recent highs, impacting trading strategies.

FUNDAMENTAL OVERVIEWUSD:The US Dollar had a good run last week on some unwinding of overstretched US Dollar shorts and mostly stronger US data. The bullish momentum eventually faded as we got a very weak US Job Openings report that coupled with the selloff in the stock market weighed on the market pricing. The focus has now turned to the US NFP report on Wednesday as that’s going to be pivotal for the US Dollar. In fact, the market is pricing 54 bps of easing for the Fed this year, so there’s a high risk of a hawkish repricing in case the data comes out strong. In such a scenario, we will likely see the greenback rallying across the board.On the other hand, a weak report should strengthen the case for more Fed easing and might even see traders bringing forward rate cut bets as some Fed members expressed scepticism about labour market stabilisation. In that case, the US Dollar will likely come under renewed pressure on dovish Fed bets.EUR:On the EUR side, the ECB held interest rates steady as widely expected last week and kept everything unchanged. It was a non-event basically. The focus was mainly on President Lagarde and comments on the euro after it broke through the 1.20 level against the US Dollar.Lagarde just acknowledged euro’s gains since last March and reiterated they don’t have an exchange rate target. She added though that a stronger euro could bring inflation down more than expected.ECB policymakers have been sounding less concerned about the euro after the exchange rate eased to 1.18. The line in the sand remains the 1.20 level but it will need to be followed by softer inflation data to trigger rate cut bets.EURUSD TECHNICAL ANALYSIS – DAILY TIMEFRAMEOn the daily chart, we can see that EURUSD eased materially after breaking above the 1.20 level as dollar shorts got overstretched and ECB policymakers “jawboned” the euro. If we get another rally into the 1.20 handle, we can expect the sellers to step in around those levels with a defined risk above the cycle high to position for a drop into the 1.1575 level. The buyers, on the other hand, will look for a break higher to increase the bullish bets into new cycle highs.EURUSD TECHNICAL ANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we can see that we have a strong resistance zone around the 1.19 handle. If the price gets there, we can expect the sellers to step in with a defined risk above the resistance to position for a drop back into the 1.1760 support targeting a breakout. The buyers, on the other hand, will look for a break higher to increase the bullish bets into a new cycle high next.EURUSD TECHNICAL ANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, we can see we have a minor upward trendline defining the bullish momentum on this timeframe. The buyers will likely continue to lean on the trendline to keep pushing into new highs, while the sellers will look for a break lower to pile in for a drop back into the 1.1760 support. The red line define the average daily range for today. UPCOMING CATALYSTSTomorrow we get the US December Retail Sales and the US Employment Cost Index data. On Wednesday, we have the US NFP report. On Thursday, we get the US Jobless Claims figures. On Friday, we conclude the week with the Eurozone Flash Q4 GDP and the US CPI report. This article was written by Giuseppe Dellamotta at investinglive.com. 🔗 Source 💡 DMK Insight The recent strength in the US Dollar is losing steam, and here’s why that matters: After a week of bullish momentum driven by short covering and solid economic data, the weak Job Openings report signals potential trouble ahead. This could lead traders to rethink their long positions in the Dollar, especially with the stock market under pressure. If the Dollar starts to retrace, it might impact correlated assets like commodities, which often move inversely to the Dollar’s strength. Keep an eye on the 100 level for the DXY index; a break below could trigger further selling. On the flip side, if the Dollar holds its ground, it might attract more safe-haven flows, especially if equity markets continue to falter. Watch for the upcoming economic releases that could either bolster or further weaken the Dollar’s position in the coming days. 📮 Takeaway Monitor the DXY index closely; a drop below 100 could signal a shift in Dollar sentiment and impact correlated markets.

Europe must prepare for greater financial safe haven roleRisks to growth and inflation are balancedInflation expectations are fully anchored, and FX movements already factored inPolicy stance is appropriateA change in environment is needed to change our policy stanceThere are no surprises in his remarks, mainly just reaffirming what we know from the ECB since the turn of the year. As things stand, they are not in any hurry to shift gears and to make any changes to policy setting. And markets know that well in not pricing in any moves by the ECB for the year, at least for now.Some slight stubbornness in price pressures and a more resilient economy has been two main things that are in play. On the counter though, there is the stronger euro and that was the a focus point at the ECB’s latest meeting. For now, policymakers are brushing things aside despite some more active remarks as EUR/USD nears the 1.20 level.As a reminder, ECB vice president Luis de Guindos previously put a pin on that level in calling it “complicated” for the central bank. This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight With ETH at $2,032.60, Europe’s financial stability could reshape crypto sentiment. The European Central Bank’s recent comments indicate a cautious approach to policy, suggesting that any shifts in monetary stance will be gradual. For traders, this means that while ETH may not see immediate volatility from European policy changes, the broader context of financial safety could drive institutional interest in crypto as a hedge. If Europe solidifies its role as a safe haven, we might see increased demand for ETH, especially if it breaks above key resistance levels. Watch for ETH’s performance around $2,100; a sustained move above this could signal bullish momentum. On the flip side, if inflation fears resurface or growth slows unexpectedly, we could see a flight to safety that might initially pull ETH down as liquidity tightens. Keep an eye on macroeconomic indicators and sentiment shifts, as they could lead to rapid changes in trading strategies. The next few weeks will be crucial for gauging ETH’s response to these developments. 📮 Takeaway Watch ETH closely around the $2,100 level; a breakout could signal bullish momentum amid shifting European financial dynamics.