FXEM - EMPIRE MARKETS - Company New Article

To access the website's classic version and the new accounts, please click here

Oct 06, 2025

XAU/USD chart on the weekly time frame

XAU/USD chart on the weekly time frame

Gold extended its bullish trajectory for a seventh consecutive week, decisively exceeding the medium-term objective of $3850 and establishing a new all-time high near $3900. 

The weekly chart illustrates this price action interacting with its cycle bands: the medium-term bands (green) and the short-term bands (red). 

A crossover where the short-term bands ascend above the medium-term bands has historically signaled an overbought condition, a state that has persisted for the past four weeks. 

Initially, this warning was not corroborated by key momentum indicators; the Volume Zone Oscillator (VZO) in the middle panel and the Price Zone Oscillator (PZO) in the lower panel remained in neutral territory, thereby supporting the continued rally. 

However, as of last week, both the VZO and PZO have advanced into their respective extreme overbought zones, warranting heightened caution. 

Consequently, we advise medium-term investors to begin scaling out of positions to realize profits, as a medium-term correction is considered imminent. 

It is prudent to raise protective stops to a level of $3700 to safeguard capital.
EURUSD Chart on the weekly time frame

EURUSD Chart on the weekly time frame

The EURUSD pair has been consolidating within a well-defined, fifteen-week sideways channel, bounded by the 1.1530 support and 1.1830 resistance levels. 

While certain technical indicators are beginning to suggest an increased probability of a bearish breakout, extended periods of market indecision, such as the current one, typically diminish the reliability of directional forecasts. 

Consequently, the next significant medium-term trend will only be established upon a decisive break outside of this consolidation range, either above 1.1830 or below 1.1530. 

Given the prevailing market conditions, a prudent strategy would involve either trading the range boundaries or, more conservatively, maintaining a neutral position until a conclusive breakout provides clearer directional evidence.
USTEC chart on the weekly time frame

USTEC chart on the weekly time frame

The USTEC index remains confined within a medium-term bearish megaphone formation, with recent price action exhibiting a distinct rejection at the pattern's upper boundary. 

Concurrently, medium-term technical indicators have persisted in overbought territory for approximately three months. 

Historical analysis of previous extended moves of this nature indicates they have typically culminated by the twelfth week. 

With indicators currently concluding their eleventh week at such elevated levels, the probability of an imminent weekly correction is heightened. While a confirmed signal has not yet been triggered, the confluence of the bearish chart pattern and extreme indicator readings warrants a strategy of extreme caution. 

Consequently, it is prudent to tighten stop-loss levels to 24,400 and refrain from initiating new long positions at current market levels.
 

To open Live account click here 

Previous Post
Technical analysis of commodities
Next Post
Technical analysis of currencies
Back

One Trading Account | 50+ Forex Pairs | 80+ Trading Instruments
Multi-Asset Trading Platforms

Open Live Account
Cookie Policy
This website uses cookies to ensure you get the best experience on our website. We use cookies for proper website navigation and function and for statistical and analytical purposes. You can select the cookie categories that you would like to manage through the Cookies Settings at any time. Please configure your Cookies Settings before proceeding. To learn more, please read our Cookies Policy
Settings
Reject
Accept all