EURUSD (4-Hour Chart)
EURUSD traded 0.41% higher throughout yesterday’s trading. The Euro found ample bidding at the start of the European trading session; however, as soon as the American trading session began, the Euro came under immense selling pressure as market participants bid up the Greenback. Market participants will now turn their attention to ECB president Lagarde’s speech, which is scheduled during the late European trading session. The U.S. will be releasing weekly initial jobless claims figures at the start of the American trading session. The falling U.S. treasury yield has acted as a tailwind for the Euro during recent months. As U.S. interest rate expectations fall short-term yields are expected to continue to fall; however, a definitive pivot from the Fed should not be expected at the December FOMC interest rate decision.
On the technical side, EURUSD has failed to break above our previously estimated resistance level of 1.0595. The short-term support level for the pair remains at around the 1.031 price region. The 61.8% Fibonacci retracement level of 1.0265 presents itself as a secondary support level for the pair. RSI for EURUSD sits at 52.08, as of writing. On the four-hour chart, EURUSD currently trades above its 50, 100, and 200-day SMA.
Support: 1.031, 1.0265
GBPUSD (4-Hour Chart)
GBPUSD snapped its two-day losing streak and headed higher throughout Wednesday’s trading. Risk-averse market sentiment sent the U.S. Greenback higher on Tuesday, but the Dollar retreated over Wednesday as U.S. treasury yields also fell lower. The most recent speech by Fed Chair Jerome Powell has convinced a majority of market participants that a pivot on the Fed’s stance on monetary policy is just around the corner; however, what these market participants fail to consider is the fact that inflation has been running at more than 9% since early 2021. The Fed’s ultimate goal of price stability and bringing inflation back down to normal levels will continue to require higher interest rates and slower growth of the economy. On the economic dockets, the U.S. will release initial jobless claims figures on Thursday and PPI data on Friday.
On the technical side, GBPUSD has failed to break above our previously estimated resistance level of 1.2349. The short-term support level for Cable exists at around the 1.177 price region. RSI for the pair sits at 55.82, as of writing. On the four-hour chart, GBPUSD currently trades above its 50, 100, and 200-day SMA.
Resistance: 1.2400, 1.2600
Support: 1.2154, 1.1927, 1.1765
XAUUSD (4-Hour Chart)
After suffering a 1.61% drop on the first trading day of the week, Gold rebounded strongly throughout Wednesday’s trading. The precious metal found relief as the U.S. Greenback retreated over falling treasury yields. Several factors could undermine the recent rally of the yellow metal, however, including China finally easing Covid-19 restrictions and the all-important FOMC meeting scheduled for December 13th to the 14th. Geopolitical tensions worldwide continue to be the central pillar supporting Dollar-denominated Gold. The prolonged war between Russia and Ukraine continues to plague the world economy and provides optimism for Gold bulls.
On the technical side, XAUUSD has consolidated around the $1770 per ounce price region and is on its way to our previously estimated resistance level of $1800 per ounce. The short-term support level for the yellow metal sits at around the $1766 per ounce price region. RSI for Gold sits at 56.04, as of writing. On the four-hour chart, XAUUSD currently trades above its 50, 100, and 200-day SMA.
Support: $1766, $1735