Important events this week:

After the correction in stock markets this year, equities went towards new all- time- highs, which had been created in October in most markets on a global scale. The weakness of the Dollar continued to push investor demand. Since Trump took office, not only markets remained volatile but also the beating of the Greenback helped investors to buy stocks cheaply.

Next year, which also offers midterm elections in the US, might remain choppy as well. Traditionally this had not been a positive year for returns in equities. Translated to the forex market such moves might also continue to harm the momentum of “risk- on” currencies like the AUD, NZD and the CAD. While most of them had been positive in 2025 the momentum might hence fade if geopolitical risks will pick up steam, again.

– NASDAQ index– with major news events being absent for the remaining trading days this year the index might continue to move higher, still. Markets remain in a rotation currently. While funds flow out of some tech stocks like Nvidia, Microsoft, Apple and Meta just to name a few, consumer and pharma companies might face some positive times as they had not performed well this year.

Nasdaq monthly chart

The monthly chart above shows the important levels; traders should pay attention to. The Nasdaq index might break higher and if the 26,000 level can be pushed though might then offer further upside momentum towards the 27,500 range. The recent rate cuts in the US might support the bullish view, paired with some weakness of the Dollar. The recent positive momentum, which started towards the end of last week might now add more buying momentum in this market.

Vice versa any corrections can be used as an entry to buy the market cheaper but a break below the 24,000-price tag might indicate a further slide in prices. Traders should use entries when markets correct but also use tight stop losses to protect their positions.

– EURUSD currency pair– Similarly to the Nasdaq also the EUR was able to gear up steam this year. The monthly chart below shows, when Trump took over oval office the trust in the US currency has lost momentum causing the European common currency to gear up steam again.

EURUSD monthly chart

Now, the market keeps trading between the technical resistance zone of 1.1800 and the support area at 1.1500. A breakout to the upside might be on the cards, especially when the Fed, the US Central Bank, will cut rates even further. The odds for this scenario remain positive: US inflation has gradually fallen recently, while employment data keeps falling as well. Reason enough for The Bank to cut rates in order to boost the US economy.

Positive US data, on the other hand, might also cause the USD to gear up steam again, causing the EURUSD currency pair to also proceed lower. A potential rise in geopolitical tensions might also support the bearish view for the currency pair in this case.

Afterall, the breakout of that mention trading range might cause the currency pair to gear up steam into either direction furthermore impacting markets in general.