Spreads
Spreads
Spreads
Spreads
Spreads
The EUR/USD pair edged higher on Tuesday, ending its previous slide and regained upside momentum to touch a daily top near the 1.019 mark despite the prevalent cautious market mood. The pair is now trading at 1.0174, posting a 0.16% gain daily. EUR/USD stays in the positive territory amid a weaker US dollar across the board, as the disappointing Housing Starts data from the US exerted bearish pressure on the safe-haven greenback and lifted the EUR/USD pair higher. The US Housing Starts decline sharply by 9.6% in July and Building Permits also dropped by 1.3% MoM, causing the US dollar to lose some strength. For the Euro, the German ZEW Economic Sentiment Index came in at -55.3 in August, which showed that the economic sentiment continued to deteriorate in the euro area and limit the upside for the shared currency.
For the technical aspect, the RSI indicator is 37 as of writing, suggesting the pair’s bullish outlook in the near term as the RSI keeps rising toward the mid-line. As for the Bollinger Bands, the price regained upside traction and started to climb toward the moving average, therefore the upside momentum should persist. In conclusion, we think the market will be bullish as long as the 1.0111 support line holds. On the upside, a break above 1.0237 could lead to additional gains for the pair.
Resistance: 1.0237, 1.0287, 1.0347
Support: 1.0111, 1.0062, 0.9988
The GBP/USD pair advanced on Tuesday, witnessing some upside traction and climbed to a daily top above 1.211 level during the US trading session after the release of downbeat US housing data. At the time of writing, the cable stays in positive territory with a 0.30% gain for the day. Traders might prefer to move on the sidelines ahead of the FOMC meeting minutes on Wednesday, which could provide clues about the possibility of a 75 bps rate hike in September. For the British pound, the mixed UK employment data fail to impress bullish traders as the number of people claiming unemployment-related benefits fell by 10.5K in July and the UK unemployment rate was unchanged at 3.8%. On top of that, the concerns about a global economic downturn and the BoE’s gloomy economic outlook both limit the gains for the GBP/USD pair today.
For the technical aspect, the RSI indicator is 44 as of writing, suggesting that the risk is skewed to the upside as the RSI has climbed further toward the mid-line. For the Bollinger Bands, the price preserved its bullish movement and kept heading toward the moving average, therefore a continuation of the upside trend can be expected. In conclusion, we think the market will be bullish as long as the 1.2027 support line holds. The rising RSI also reflects bull signals.
Resistance: 1.2143, 1.2248, 1.2277
Support: 1.2027, 1.1940, 1.1897
Gold price continued the trend of yesterday coming under bearish pressure on the trade of the day and declined toward the $1,770 level. Despite last week’s softer US CPI report, Fed officials warned that it is far too early for the US central bank to declare victory on inflation. Suggesting that the Fed would stick to its policy and have maintained a hawkish tone. The benchmark 10-year US Treasury bond yield is up more than 2% on the day. supporting the US dollar. This, in turn, undermines the dollar-denominated commodity. That said, traders might refrain from placing aggressive bets ahead of the key central bank event — the FOMC minutes on Wednesday. For more price actions, eye on the tier 1 economic data from the US.
For the technical aspect, the RSI indicator is 42 as of writing, suggesting that the downside is more favoured as the RSI keeps in a downtrend and stays below the mid-line. For the Bollinger Bands, the price edged slightly down along with the lower bound, and the downward moving average seems to take pressure from the upside. In conclusion, we think the market will be bearish as the RSI indicator keeps in a downtrend and the price keeps edging lower below the moving average. At the time of writing, the price is slightly above the $1,770 level. If XAU/USD closes with negative price action below $1,770 on the four-hour chart, it might head to test the next support level at $1,757.
Resistance: 1803, 1857, 1876
Support: 1770, 1757, 1714
