Three US indices at all-time highs – Nasdaq to follow? [Video]

In today’s GCI Market Outlook, let’s take a look at Forex Trading on EUR/JPY, Gold, XAU/USD, Silver, XAG/USD, EUR/USD, USD/CAD, NZD/USD, the NASDAQ, and the S&P500.

I’m going to jump straight into the economic calendar because, hopefully, the October and November Non-Farm Payroll data will be released.

This is significant as the US Labor Department cited the worst jobless claims since COVID.

Despite this, after the Fed lowered interest rates last week, the major US Indices like the S&P500, the Russell 2000, and the DJIA hit record highs.

The NASDAQ is lagging behind so we will watch for a rebound, unless next Tuesday’s NFP number is bad…if in fact, it is published.

What HAS been affected though, is USD which is weaker right across the board, with the lower interest rates.

Will it go weaker with a bad NFP report?  Let’s take a look at some pairs.

Technically, we see mixed indicators on the current bear run on NZDUSD.

The stochastic oscillator is still overbought but MACD is heading into bullish territory.

Keep in mind that fundamental events, like the US NFP report, will outweigh technical analysis, every time.

If we consider that USDCAD will fall further on the report, we have room to move with key support at around $1.37.

And, the technicals look the same, inversely correlated, of course.

On EURUSD, the technicals are not quite as severe but, a weaker USD could see price action break resistance and head higher, possibly into the $1.18 levels.

The weaker USD has driven price action on Gold and Silver higher with XAUUSD at almost $4,300, again, and XAGUSD at an eye-watering $64 yesterday.

As we discussed last time, a natural disaster always has a negative effect on an economy’s currency and we have seen this before with JPY.

Again, today, another earthquake hit Japan and tsunami warnings persist.

We won’t see a reversal on any yen pairs until the dangers have passed.