Market update: gold price, Nasdaq 100, EUR/USD - what comes next after US CPI data?

Gold price technical analysis

Gold prices (XAU/USD) dropped to a two-month low on Tuesday after higher-than-anticipated US CPI data sparked a hawkish repricing of Fed interest rate expectations, boosting US Treasury yields and the US dollar across the board.

With progress on disinflation stalling, the US central bank may delay the start of its easing cycle and opt for only modest rate cuts when the process gets underway. This could mean higher bond yields and a stronger US currency for longer, a situation that could exert downward pressure on precious metals.

From a technical point of view, gold sank below $2,005 and quickly descended towards its 50-day simple moving average at $1,990. If prices fail to stabilize around these levels and extend to the downside, we could soon see a move towards $1,975. On further weakness, all eyes will be on $1,965.

In the event of a bullish reversal, which seems improbable at the moment given the lack of positive catalysts, resistance looms around $2,005. Beyond this technical ceiling, the focus will shift to the 50-day simple moving average hovering near $2,030.

Gold price daily chart

Nasdaq 100 technical analysis

The Nasdaq 100 suffered a severe setback on Tuesday, falling more than 1.5%, on the back of rising US rates, following higher-than-expected CPI numbers. With yields pushing towards fresh highs for the year, stocks will have a hard time staying afloat, meaning a large correction could be around the corner.

In terms of relevant technical thresholds, the first key support to watch appears at 17,555, which corresponds to a short-term uptrend line extended from the October lows. Should prices fall below this area, the crosshairs will fall squarely on 17,150, slightly above the 50-day simple moving average.

On the other hand, if bulls manage to mount a comeback and trigger a meaningful rebound, resistance emerges at the all-time high around 18,125. Sellers are expected to vigorously guard this ceiling, but in case of a breakout, the tech index may find itself gravitating towards 18,300.

Nasdaq 100 daily chart

EUR/USD technical analysis

EUR/USD dropped sharply on Tuesday, hitting its lowest level in three months, and closing below support at 1.0720. If this breakdown is sustained in the coming days, sellers may be emboldened to initiate an assault on 1.0650. Continued losses from this point onward could turn the spotlight to 1.0520.

Conversely, if buyers regain the upper hand and spark a turnaround, the first technical hurdle to monitor can be spotted in the vicinity of 1.0720. Above this area, the next resistance zone of interest lies near 1.0800, where the 100-day simple moving average aligns with a short-term descending trendline.

EUR/USD daily chart

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