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.AUD:On the AUD side, the RBA hiked the Cash Rate by 25 bps as widely expected bringing it back to 3.85%. The central bank delivered a hawkish surprise as it signalled two more rate hikes by year-end compared to just one expected by the market at the time. We got the hawkish repricing in interest rate expectations with traders now seeing 40 bps of tightening in 2026. The focus will remain on the data but it will need to be very hot to get the market to price in even more rate hikes.AUDUSD TECHNICAL ANALYSIS – DAILY TIMEFRAMEOn the daily chart, we can see that AUDUSD retested the support zone around the 0.69 handle and eventually rallied as the US Dollar came under renewed pressure. The buyers continue to target the resistance zone around the 0.7150 level. 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 0.69 support. The buyers, on the other hand, will look for a break higher to increase the bullish bets into new cycle highs.AUDUSD TECHNICAL ANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we can see we have a minor resistance zone around the 0.7050 level. This is where we can expect the sellers to step in with a defined risk above the resistance to position for a drop back into the 0.69 support targeting a breakout. The buyers, on the other hand, will look for a break higher to increase the bullish bets into the 0.7150 resistance next.AUDUSD TECHNICAL ANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, there’s not much else we can add here as the sellers will likely step in around these levels to target new lows, while the buyers will look for a break higher to extend the rally into new highs. The red lines define 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 The recent strength in the US Dollar is losing steam, and here’s why that’s crucial for traders: Last week, the Dollar saw a boost from short covering and positive economic data, but the weak Job Openings report signals potential weakness ahead. This could lead to a shift in sentiment, especially if traders start reassessing their positions. The selloff in the stock market adds another layer of concern, as risk-off sentiment typically drives investors towards safe havens like the Dollar. However, if the Dollar starts to reverse, it could trigger a cascade effect across forex pairs and commodities. Keep an eye on the 100-day moving average for the Dollar index; a break below could indicate a trend reversal. Additionally, monitor correlated assets like gold, which often moves inversely to the Dollar. If gold starts gaining traction, it might signal that traders are fleeing to safety, which could further weaken the Dollar’s position in the coming weeks. 📮 Takeaway Watch the 100-day moving average for the Dollar index; a break below could signal a trend reversal and impact correlated assets like gold.

The rebound on Friday was headlined by the Dow crossing the 50,000 mark but tech also managed to bounce back a little at the end of last week. But today, the jitters are creeping back in as we see Nasdaq futures lead the declines now in a notable drop in the past hour. S&P 500 futures are down 0.4% while Nasdaq futures are down by 0.7%, but Dow futures are only lower by 0.1% for the time being.It’s a big week in terms of US economic data releases and that will just fuel the volatility in the days ahead. But for now, it is clear that there are still some nerves up in the air.Anthropic making waves and continued concerns surrounding AI valuations were key factors dragging down the mood last week. So, expect the spotlight to stay on that again this week. That alongside the major data points from the US as mentioned.The drop in equities is also coinciding with a broader risk retreat in markets. Gold is back down just under $5,000 with silver falling back below the $80 level. Elsewhere, Bitcoin is also falling to the lows for the day now with the cryptocurrency lower by 3% to $68,500 levels. That after having dipped below $70,000 earlier in the day here. This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight The Dow’s recent surge past 50,000 is a headline grabber, but the tech sector’s struggles signal deeper market concerns. While the Dow’s milestone might suggest bullish sentiment, the Nasdaq’s decline indicates that investors are wary, especially with tech stocks often leading market trends. This divergence could mean a shift in risk appetite, particularly as earnings reports loom. Traders should keep an eye on the Nasdaq’s performance; if it continues to falter, it could drag down broader indices. Watch for key support levels in the Nasdaq—if it breaks below recent lows, it could trigger further selling across the board. Here’s the thing: the tech sector has been a bellwether for market health. If it can’t regain momentum, we might see a broader correction. Keep an eye on the upcoming economic indicators and earnings releases, as they could either bolster or further shake investor confidence. 📮 Takeaway Monitor the Nasdaq closely; a break below recent lows could signal broader market weakness and trigger selling pressure.

Japanese Prime Minister Sanae Takaichi’s party, the Liberal Democratic Party (LDP), has won a landslide in Japan’s general election, securing a supermajority in the country’s lower house of parliament, Bloomberg reported on Sunday. 🔗 Source 💡 DMK Insight Japan’s LDP victory could shift market dynamics, especially in forex and equities. A supermajority means the government can push through policies without much opposition, potentially leading to increased fiscal stimulus and economic reforms. Traders should keep an eye on the yen’s performance against major currencies, as a stronger government mandate could bolster investor confidence and drive up demand for Japanese assets. However, there’s a flip side: if the government leans too heavily on stimulus, it could raise concerns about inflation, impacting interest rates and the yen’s value. Watch for key levels in USD/JPY; a break above recent highs could signal a bullish trend. Also, monitor the Nikkei 225 for potential upward momentum as investor sentiment shifts positively. In the coming weeks, the market will likely react to any proposed reforms or spending plans, so staying updated on government announcements is crucial. 📮 Takeaway Watch USD/JPY closely; a break above recent highs could indicate a bullish trend as the LDP pushes for economic reforms.

In today’s WaveTalks session, we dive deep into the latest market moves and review our past prediction accuracy before jumping into technical setups for the coming days. 🔗 Source 💡 DMK Insight So, the latest WaveTalks session is shedding light on market moves, and here’s why that matters right now: traders are looking for clarity amid volatility. With the market constantly shifting, understanding past prediction accuracy can help gauge future movements, especially as we head into a new trading week. Technical setups are crucial for day and swing traders alike. If the session highlights specific patterns or levels, those could serve as key indicators for entry or exit points. For instance, if they point out a resistance level that’s been tested multiple times, it could signal a potential reversal or breakout. Keep an eye on how these setups align with broader market trends, like economic indicators or sentiment shifts, which can amplify price movements across correlated assets like forex pairs or commodities. Here’s the thing: while mainstream coverage often focuses on immediate price action, the real story lies in understanding the underlying trends and setups that could dictate market behavior in the coming days. Watch for any updates on key technical levels discussed in the session, as they could provide actionable insights for your trading strategy. 📮 Takeaway Monitor the technical setups discussed in the WaveTalks session for potential entry points, especially if they highlight key resistance or support levels.