Weekly Technical Analysis Forecast – May 26, 2025

EUR/USD has consolidated its gains after breaking decisively above the 1.1300 key resistance level, a move that confirmed a bullish reversal. The pair continues to trade well above the 30-period SMA, while the RSI remains above 50, signaling ongoing bullish momentum despite the recent slowdown. A series of higher lows and a higher high from 1.1070 helped bulls regain control, solidifying the shift away from a bearish structure. While the upward momentum has stalled in the 1.1370-1.1420 supply zone, the broader technical picture still favors the bulls. As long as the price holds above 1.1220, the potential for further gains remains. A decisive break higher could pave the way for a move toward the previous peak at 1.1560. Conversely, a bearish breakout would weaken the current outlook and trigger a deeper retracement.

USD/CAD has extended its decline following a break below this month’s bottom at 1.3760, signaling a shift in momentum to the downside. As previous buyers bailed out, bears have returned, and the pair currently stays below the 30-period SMA. Such a move would mark a clear shift toward a bearish market structure, with lower lows and lower highs. A technical bounce could show limited follow through, with former support 1.3830 acting as new resistance. The bearish outlook remains intact as long as the price stays below the 30-period SMA and 1.4000. Until then, bears are threatening to push the pair towards 1.3620 which would then expose the September swing low of 1.3450.

Gold has bounced off $3290 over the rising trendline formed in mid-May, sustaining its bullish momentum. Then a decisive break above $3345 and the descending trendline from the April high signals renewed buying interests. If this move holds, the next resistance level to watch is $3440 where a clean breakout would force the remaining sellers to cover and increase the likelihood of a bullish continuation in the coming weeks. In the meantime, a pullback towards the $3285 area alongside the 30-period SMA is possible to let the bulls catch their breath. As long as the price remains above its recent swing low of $3120, the broader uptrend remains intact.

The Nasdaq 100 has shown notable resilience as the broader trend remained bullish, with strong momentum and a pattern of higher lows. However, a bearish engulfing candle followed by a sharp drop, which together signal indecision as the index approaches the supply zone around 21500. All eyes are on the trend line as a sustained move below it would put the psychological level of 20000 in focus. This confluence zone is also the start of the latest rally and a break would open the door for a deeper correction. On the upside, bulls must reclaim the immediate hurdle of 21500 to regain control and shift the bias back toward the highs. Only a decisive recovery above this range would revive discussions of a retest of recent peaks or a potential push to new all-time highs near 22425.