Weekly Outlook for Week 42 for EUR/USD, BITCOIN, Nasdaq & Nvidia

by JFD Research
07:38, 2024/10/14

EUR/USD with a head start

Despite recent losses, the major FX pair does not yet appear to have finished depreciating. Last week, it fell below the 1.1000 USD level, indicating a further period of weakness for the rest of October.

It initially rebounded from the 1.0916 USD support level, but the price weakness could continue for the next few trading days. Below 1.1000 USD, the situation remains in favour of the US dollar. New reaction lows confirm the downward trend. Below 1.0900 USD, a further devaluation in the direction of the cross-support of 1.0800 USD is therefore to be expected.

In contrast, a dynamic return above the $1.1000 level would be positive, suggesting that there could be a recovery towards the round mark of $1.1100.

Bitcoin (USD) still caught in a downward trend

Bitcoin is still in an intact downward structure. The downward trend that has been established since spring was only confirmed again at the end of September, and so it will be interesting to see whether the latest gains can be maintained.

Since the last confirmation of the downward trend line on 27 September, prices slid again from USD 66,000 towards USD 60,000. The round mark of 60,000 USD can be considered as short-term support. Should the recent recovery continue, a renewed attack on the trend line in the area of currently around 65,000 USD seems possible. A breakout above it could provide further momentum, making levels of 70,000 USD and higher conceivable again.

A drop below 60,000 USD at the end of the day, on the other hand, is likely to activate the bears. Consequently, losses of up to 57,537 and 53,219 USD should be taken into account.

NASDAQ100 sets its sights on record high

The performance of the US tech index knows no bounds. For five weeks in a row now, prices have been consistently rising. Consequently, nothing stands in the way of an attack on the record high of around 20,691 points reached in the summer.

The upward trend is intact on various time horizons. Both on an overarching and a daily basis, an attack on the all-time high seems unavoidable in the near future. Accordingly, the index should continue to rise and set its sights on new record highs. Within the established upward trend channel, levels of over 21,000 points by the end of the year are possible.

A drop below the newly formed support of 19,751 points at the end of the week would be a negative sign. In this case, short-term losses to the lower trend line of the trend channel at around 18,800 points would have to be expected. In the event of an expansion, losses could reach the support level of 18,417 points.

NVIDIA back in top form

The previous week was all about the bulls. With the momentum from the start of October, NVIDIA shares managed to post another week of performance and even set a fresh multi-month high.

The weak price performance at the end of August and beginning of September has become recent history as a result of the strong trading weeks. Rather, the breakout above the resistance level of USD 130.00 paved the way towards the all-time high of USD 140.76. Above that, the target is the USD 150.00 mark per share, before quotations in excess of USD 175.00 become possible.

Should the price fall below USD 125.59, the cross-support at around USD 116.00 would be tested.

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