On Monday, top altcoins Solana (SOL) and Cardano (ADA) continued their correction phase, with both assets dropping over 11% in the past week. This decline aligns with the bearish signals indicated by the Moving Average Convergence Divergence (MACD) indicator, which has shown a bearish crossover for these cryptocurrencies. The technical outlook suggests that the pullback will persist as market conditions remain challenging.
Gold prices, meanwhile, have been consolidating above $2,685, driven by bullish price action studies and technical analyses. However, analysts caution that any movement below this level could lead to a drift toward $2,680, $2,675, and $2,670. The next significant support is identified at $2,668, followed by $2,658. Despite these potential setbacks, local demand might resurface upon testing these support zones.
The persistent strength of the US Dollar continues to impact a range of financial assets. The pair bears the weight of unabated demand for the US Dollar, fueled by hawkish Federal Reserve expectations and policy uncertainties linked to former President Trump. Elevated US bond yields also contribute to capping gains for the XAU/USD pair. Despite this, gold managed to attract dip-buyers on Monday, remaining near a one-month high set last Friday.
In the foreign exchange market, the GBP/USD pair encountered notable selling pressure near the 1.2150 mark during the European session on Monday. The Euro also struggled, trading in negative territory below 1.0250 after testing the 1.0200 level. This decline is attributed to dovish commentary from the European Central Bank (ECB), which contrasts with the hawkish stance of the US Federal Reserve.
The Euro's weakness and the British Pound's pressure highlight the impact of a robust US Dollar amid expectations of further interest rate hikes from the Federal Reserve. This sentiment was bolstered by a strong US Non-Farm Payroll (NFP) report, which reinforced the outlook for continued monetary tightening.