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Dec 28, 2025

XAU/USD chart on the weekly time frame

XAU/USD chart on the weekly time frame

The Average Directional Index (ADX), a technical indicator of trend strength, generated three significant signals over the past three years. 

  1. The first, in November 2024, precipitated a decline from $2790 to $2537, succeeded by an eight-week period of consolidation. 
  2. The second, in April 2025, was followed by a drop from $3500 to $3064 and approximately 15 weeks of narrow, sideways price action. 
  3. The third and most recent signal, however, deviated from this pattern. Contrary to historical precedent, Gold prices breached the major resistance level near $4382 and rallied to a new all-time high of $4550, a move that has propelled the ADX into an extreme, historically unobserved range. 

Given this shift in market structure, the medium-term profit protection level should be adjusted upward to last week's low of $4340, with a tactical bias toward scaling out of positions on subsequent strength. 

For the short-term horizon, the current rally possesses technical scope to extend toward the approximately $4600 price objective, derived from the prior completion of a symmetrical triangle formation.
 
EURUSD Chart on the weekly time frame

EURUSD Chart on the weekly time frame

During the previous week, the EUR/USD pair advanced, fully recovering the prior week’s decline, before encountering established resistance near the 1.1800 level. 

The broader technical posture remains one of consolidation, with the pair confined to a multi-month trading range between 1.1450 and 1.1800. 

Although the Average Directional Index (ADX) does not yet signal a high-probability breakout, its recent trajectory shows a subtle bullish inclination. 

Concurrently, the On Balance Volume (OBV), a key leading indicator during extended consolidations, has broken above, retested, and rebounded from a significant resistance zone, bolstering the case for an eventual bullish resolution. 

These developments suggest the ongoing consolidation is likely a corrective phase within a persistent medium to long-term uptrend, preserving a constructive structural bias.

A sustained break above the 1.1800 resistance would project an initial measured move toward the 1.2200 region. 

In line with this outlook, the preferred strategy is to either establish long positions on pullbacks toward the 1.1700 support zone or upon a confirmed break above 1.1800. Risk management should involve a short-term stop loss at 1.1690, with a medium-term stop loss placed at 1.1600.
 

 
USTEC chart on the weekly time frame

USTEC chart on the weekly time frame

The USTEC index has established a new weekly symmetrical triangle formation, a technical pattern indicative of market balance and consolidation, and concluded the recent week with a slight retreat from its upper boundary. 

Neither the Average Directional Index (ADX) nor trading volume currently signal an imminent resolution, suggesting the consolidation phase is likely to extend for several additional weeks prior to a decisive directional move. 

The analysis identifies two critical directional triggers: a bearish resolution would be confirmed by a daily close below the 24,670 support level, generating a sell signal, while a bullish breakout would require a daily close above the 26,000 resistance to warrant consideration for long positions. 

Consequently, a neutral tactical stance is maintained for the immediate term, with focus directed toward monitoring these defined thresholds for a conclusive breakout before establishing new positions.
 

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