• CL-OIL


  • Cocoa-C


  • View more

Daily Technical Insights 15 February 2023


Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.

EURUSD (4-Hour Chart)

The EURUSD erased most of its daily gains and began to turn south after reaching a daily high of 1.0800 level, as investors continued to react to the US Consumer Price Index report. The pair lost its upside momentum following US CPI rose at an annualized 6.4% in January and 5.6% when it comes to the Core CPI, higher than the expected 6.2% and 5.5% respectively. Moreover, the Dallas Federal Reserve President Lorie Logan said, “We must remain prepared to continue rate increases for a longer period than previously anticipated, if such a path is necessary to respond to changes in the economic outlook or to offset any undesired easing in conditions,” which managed to provide a boost for US Dollar, in turn, undermining the pair.

From the technical perspective, the four-hour scale RSI indicator slid back to the neutral area, suggesting that the upbeat market mood has faded. As for the Bollinger Bands, the pair was priced in the upper area and supported by a 20-period moving average, showing that the EURUSD currently has no clear direction to move and investors would carefully reassess the future path.

Resistance: 1.0930, 1.1020

Support: 1.0666, 1.0508

GBPUSD (4-Hour Chart)

The GBPUSD dropped dramatically in American trading hours following the release of inflation data in the United States. US CPI cooled on an annual basis but was higher than forecasts US inflation reported by the Department of Labor (DoL) showed that the Consumer Price Index (CPI) for January rose by 6.4% YoY, above estimates of 6.2%, while core CPI jumped to 5.6% YoY, against data estimated at 5.5%. Monthly basis regardings were in line with estimates. After the data release, US Treasury bond yields advanced, with the US 2-year Treasury bond yield edging towards 4.622%, as an initial reaction to the data, which warrants further tightening by the US Federal Reserve (Fed). Domestic, according to Reuters, wages in Britain grew quickly in the last quarter of 2022, keeping the Bank of England (BoE) pressured.

From the technical perspective, the four-hour scale RSI indicator slightly fell to 59 figures as of writing, suggesting that the pair was surrounded by strong positive traction. As for the Bollinger Bands, the pair kept trading in the upper area and the gap size tend to be larger, showing the GBPUSD was more favored to the upside path.

Resistance: 1.2265, 1.2391, 1.2492

Support: 1.1927, 1.1859

XAUUSD (4-Hour Chart)

The gold price tumbled to a fresh monthly low at $1843.36 for the first time since January after Wall Street’s opening and following the US Consumer Price Index (CPI) release. According to the US Bureau of Labor Statistics, the CPI rose by 6.4% every year in January, easing from 6.5% previous but higher than the 6.2% expected. The core CPI rose by 5.6% every year, also easing from the previous but higher than expectations. On the upside, inflationary pressures continue to ease but not enough to take the Fed away from its tightening path. At the time of writing, the pair is trading at $1,855.93, posting a 0.12% gain daily, while the benchmark 10-year US Treasury bond yield rose 1.57% to 3.765%, exerting selling pressure on Gold price.

For the technical aspect, RSI indicator 42 figures as of writing, maintaining around selling region as the price keeps moving under selling pressure in the near term. As for the Bollinger Bands, the price is hovering between the downward moving average and the lower band. The bearish trend should persist. In conclusion, we think the market is in bearish mode as both indicators show bearish potential. Besides, the price is edging lower and keeps forming a lower-low technical pattern, which favors the bearish side. For the downtrend scenario, the next support level is $1,830. If the price close below the level, it may trigger some technical selling and drag the price deeper.

Resistance: 1900, 1920, 1957

Support: 1830, 1800

Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.