Bitcoin established new historical highs after breaking 100,000 and even making it slightly above 103,000. However, later, the cryptocurrency moved backward and stopped below 100,000. The question is whether BTC will make it above 105,000. By reading this review, you will learn more about Bitcoin’s near future as well as some other predictions related to currencies and commodities.

BTCUSD: A Huge Momentum is Needed

When speaking about Bitcoin it is worth mentioning that all the latest bullish momentum was due to the fact that Donald Trump has won the US presidential election and will join the Oval Cabinet on January 20, 2025. The future US president promised more loyal legislation and, according to the latest rumors, he will make some appointments that are likely to improve crypto legislation in the United States. 

The price of the cryptocurrency broke above 100,000 for a while, but more drivers are needed before it will move higher. Therefore, we do not expect BTCUSD to make above 105,000 until the inauguration or more announcements from the future president, especially those related to the crypto industry.

Technically speaking, Bitcoin is below the SMA50, which means that the seller’s pressure is still high. Moreover, we have lower highs, which tell us that the local downtrend is currently in place. The next target below can be at 96,000 and then at 94,200. On the upside, the closest resistance lies at the SMA50. If the price manages to break it, the next targets will be at 100,00 and 102,000.

XAUUSD: Gold is Supported by Fears of Geopolitical Instability

Geopolitical tensions are supporting gold as the situation in Europe, Asia, and the Middle East pushes traders and investors away from risky assets. Being a safe-haven asset, gold benefits from what is hapenning currently. Moreover, XAUUSD is supported by news coming from China as local Politburo is ready to launch another round of economic stimulus.

The US dollar, in turn, is under pressure on the eve of the upcoming FOMC meeting as the Fed is likely to cut rates by 25 bps. However, this pressure is short-term as the FOMC members give more cautious comments about future monetary policy decisions.

When it comes to technical analysis, XAUUSD is trading above the simple moving average, which tells us that bulls dominate the market currently. The closest support is at 2,657 and the resistance is at 2,675. By breaking above, Gold is likely to target 2,700, which is a psychological level from which the price can move even higher. 

The RSI indicator is below 70, which means that there is no momentum or reversal at the moment. If XAUUSD moves below 2,675, the next support will be at 2,640 and 2,620.

EURUSD Moves Downwards on Dovish ECB Expectations

EURUSD loses momentum ahead of the ECB meeting that will take place on Thursday. According to forecasts, the European Central Bank is ready to make another round of monetary policy easing and cut the rate by 25 basis points. If this happens, it will be the third rate cut in a row. Moreover, the currency situation in the Eurozone is likely to stimulate the ECB to continue its expansionary policy in 2025, which weighs over Euro.

The future US President Donald Trump promised 25% tariffs on all goods coming from the Eurozone, which means that further economic slowdown is possible. Some economists from the Eurozone do not see any negative impact from these steps, while others expect the exports from the Eurozone to fall, which will have additional pressure on local economies.

Looking at the EURUSD chart, the price is below the moving average and shows lower highs, which means that the sellers’ pressure is rising. While the currency pair is still able to move upwards, we do not expect it to surpass the moving average. Such an upside movement can be used as a signal for buying lower contracts or selling CFDs. 

The closest target below is 1.0480, if the currency pair manages to reach it, the next one will be at 1.0430. When it comes to the upside, the only scenario is that EUR/USD reaches the SMA50 somewhere at 1.0550.

GBP/USD: The Currency Pair Consolidates Ahead of the US Inflation Data

The situation with the British Pound is different as market participants are waiting for the US inflation data. The Bank of England has much room when it comes to monetary policy decisions as inflationary pressure is still high and the officials are unlikely to vote for more rate cuts in the near future. On the other hand, the Fed is likely to cut rates during the upcoming meeting that will take place in December. 

However, the latest Fed official’s comments indicate that the Federal Reserve will be more cautious in the future and new easing decisions are unlikely to take place in January or February. Therefore, the US dollar, while being under pressure in the short term, looks attractive for those who trade mid and long-term.

The currency pair is currently consolidating right below the SMA50. The is no clear direction of fluctuations and the price stays within a range between 1.2720 and 1.2800. In this situation,, the best strategy is to trade between the support and resistance levels. If the price manages to break above 1.2800, then the next target may be at 1.2880, while the downside scenario may lead the price to 1.2665.