In late Asian trading on Tuesday, the U.S. dollar index hovered near 96.90, while spot gold traded around $5,040 per ounce. Market participants are focusing on the upcoming U.S. retail sales data, which is expected to trigger significant market movements. The Kshitij Consultancy Service team released a new analysis on Tuesday, offering a technical outlook for gold, the U.S. dollar index, EUR/USD, EUR/JPY, USD/JPY, AUD/USD, GBP/USD, and USD/CNY.

The U.S. dollar started the new week on a weak note as traders await several key U.S. economic releases, including retail sales, inflation figures, and the closely watched non-farm payrolls report. On Monday, the dollar index, which tracks the greenback against six major currencies, fell sharply by 0.84% to 96.86.

Investors are preparing for a series of economic indicators this week to gauge the Federal Reserve's policy outlook. Markets are currently pricing in at least two 25-basis-point interest rate cuts by the Fed this year.

At 21:30 Beijing time on Tuesday, the U.S. Census Bureau will release retail sales data for December. A survey by authoritative media indicates that U.S. retail sales are expected to rise by 0.5% month-on-month, following a 0.6% increase in November.

U.S. retail sales data is often referred to as the "terror data" due to its substantial impact on financial markets, and it is likely to influence the movements of assets such as the U.S. dollar and gold.

The Kshitij Consultancy Service team provided the following technical views on key assets:

Gold Gold prices remain below $5,100 per ounce, in line with expectations. A sustained break above $5,100 is needed for gold to advance further toward the $5,300–$5,500 range.

U.S. Dollar Index The dollar index has fallen below 97. If the decline continues, the index could test the 96.00–95.50 zone. As long as it stays below 97.50, the outlook remains bearish. U.S. retail sales data will be released today.

EUR/USD EUR/USD has indeed risen above 1.1850, as mentioned previously. If the current upward momentum persists, the pair could test 1.20 or slightly higher in the short term.

EUR/JPY EUR/JPY has retreated from 186.23. Overall, the pair may continue to trade within a broad range of 187.50–182.50 in the near term.

USD/JPY USD/JPY declined following the election victory of Japanese Prime Minister Takaichi Sanae. The pair needs to break below 155 to bring 154–153 into view. Upside potential appears limited to 157 in the short term.

USD/CNY USD/CNY is retreating, consistent with the view that the pair may gradually decline toward the 6.90–6.85 levels in the medium term.

AUD/USD AUD/USD is currently trading near the upper end of the 0.69–0.71 range. A confirmed breakout above 0.71 is required for the pair to advance toward 0.7150–0.7200.

GBP/USD GBP/USD has climbed above 1.365. If this level holds, the pair could extend gains toward 1.37–1.38.