On Friday (November 15), after the usd reached a year-to-date high of 156.74, it slightly steadied around 156.63. The "Trump Trade" boosted strong usd, and Federal Reserve Chair Powell's signal of being in no hurry to cut rates intensified the usd bid. Looking ahead, traders are awaiting europe's economic data.

As optimism grows about Trump's potential control of legislation, the usd strengthens. This control could facilitate the implementation of economic policies considered inflationary but supportive of the usd. Recent us inflation data have reinforced expectations that the Federal Reserve will cut rates by one basis point on December 25, which typically suppresses the usd, but the overall policy outlook remains favorable for the usd.

Furthermore, Powell stated that given the strong us economic data, the Federal Reserve is not in a hurry to cut rates.

Due to being overbought, gold prices have retreated from strong resistance levels, and the strengthening usd has also supported this decline. Additionally, the recent outflow of funds from gold exchange-traded funds (ETFs) has put downward pressure on gold prices, possibly because investors are shifting their focus to risk assets.

The euro/usd movement is weak and is awaiting europe's economic data. Eurozone GDP grew only modestly by 0.4% in the third quarter, while industrial production declined sharply, further burdening the euro. As the euro weakens and the usd strengthens, the euro/usd continues to face pressure, highlighting the starkly different economic outlooks between the usa and europe.

Here is FXEmpire analyst Muhammad Umair's technical analysis on gold, usd, and euro:

Gold Technical Analysis

The daily chart shows that gold is moving within an ascending channel, with prices consolidating at strong support levels. The black trendlines within the ascending channel define this support level. The RSI is approaching the support area, indicating that a bottom may be near. A break below this trendline would open the door for a deeper correction.

(Source: FXEmpire)

The 4-hour chart shows that gold prices have strongly rebounded from the support level of 2550 USD. This support area is very important as it coincides with the daily and weekly support zones. A strong rebound from this level may indicate the start of a new upward trend in gold. The RSI indicators show that oversold conditions have been observed on the 4-hour chart. A break below 2540 USD indicates further declines.

(Source: FXEmpire)

US Dollar Technical Analysis

The daily chart of the USD shows that the index reversed lower after reaching the target of 107. The pullback from this resistance level highlights the importance of this area. The market is trying to avoid breaking through 107, otherwise it may trigger a strong movement in the USD index.

(Source: FXEmpire)

The 4-hour chart of the USD index shows that an upward channel has formed, and the index is consolidating briefly near the channel resistance level. This price action is due to the strong resistance at 107. Given the RSI is overbought, a correction from this level is likely.

(Source: FXEmpire)

EUR/USD Technical Analysis

Since the usd index reached resistance, the euro/usd has hit a long-term solid support level. The low point in October 2023 highlighted this support. The price is still under immense pressure. However, the currency pair may rebound from 1.0466 usd. The strong resistance area of the dollar further supports the reversal.

(Source: FXEmpire)

The 4-hour chart of euro/usd shows that the currency pair has rebounded from a strong support area. The decline in euro/usd was driven by Trump's victory in the presidential election, causing significant price fluctuations. The RSI indicates that euro/usd is likely to form a bottom around these levels and begin a strong upward trend.

(Source: FXEmpire)