Dollar Weakness Drives Markets: Gold Holds, EUR/USD Breaks Out, Nasdaq Stabilizes

Technical Analysis – March 10, 2025

U.S. Dollar Index (DXY)

The DXY continues its bearish trend, currently trading around 103.75, after a sharp breakdown from the 107-108 resistance zone. The decline is accelerating with strong bearish momentum, and the next support levels are seen at 102 and 100.54. If selling pressure persists, a test of 100 is likely in the coming weeks. However, a short-term bounce from 103 is possible before further declines. The broader trend remains bearish unless DXY reclaims 105.45.

• Key Levels: Resistance at 107-108, Support at 102 & 100.54
• Trend: Bearish

Gold (XAU/USD)

Gold remains in a consolidation phase between $2,895 – $2,925, trading near $2,905. This range-bound movement suggests accumulation, likely in response to the weakening Dollar. If the price breaks above $2,925, the next target is $2,950-$2,970, while a breakdown below $2,895 could trigger a retest of $2,850 support. Volume remains stable, indicating no significant liquidation pressure yet. A bullish breakout remains more probable given the current macro conditions.

• Key Levels: Resistance at $2,925, Support at $2,895 & $2,850
• Trend: Neutral with a bullish bias

EUR/USD

The EUR/USD pair is rallying sharply, currently at 1.0842, after breaking past 1.06 resistance. The next key resistance is around 1.09, where profit-taking could emerge. The bullish breakout is supported by high volume, and a continuation toward 1.1035 is possible if DXY weakness persists. A pullback to 1.06-1.07 could provide a buying opportunity before further upside.

• Key Levels: Resistance at 1.09 & 1.1035, Support at 1.06
• Trend: Strong bullish

Nasdaq 100 (NDX)

The Nasdaq 100 index is showing signs of support near 20,200, following a pullback from all-time highs. The 20,500 zone is acting as resistance, and a break above it could trigger a rebound toward 21,500. On the downside, strong support exists at 19,500, which aligns with a prior consolidation area. Volume suggests that buyers are still active, preventing further downside acceleration.

• Key Levels: Resistance at 20,500 & 21,500, Support at 19,500
• Trend: Corrective but still bullish