Analyzes

EUR/USD remains bearish as risk-off sentiment, Fed-ECB divergence, and weak technicals point to further downside ahead of key economic data.

Market mood got hammered yesterday — for all the reasons we’ve been citing over and over: overstretched tech valuations, an increasingly narrow rally, and the circularity concerns around Big Tech that are reviving dot-com bubble comparisons.

Gold is licking its wounds near $3,950 in Asian trades on Wednesday, following a 1.80% decline seen on Tuesday. Traders look forward to the US ADP employment data and the US ISM Services PMI report for fresh trading impetus.   

Spot Gold trades with a soft on Tuesday, currently hovering around $3,965 a troy ounce. The bright metal seems unable to attract speculative interest, despite the dominant cautious mood, with investors preferring to add US Dollar (USD) longs.

The Australian Dollar (AUD) carried Monday’s gloomy tone into Tuesday, pushing AUD/USD back below the 0.6500 mark and to new two-week troughs.

Gold prices remain range-bound near $4000, with key support at $3880 and resistance at $4110 as traders await clarity from US data and China’s tax changes.