Spreads
Spreads
Spreads
Spreads
Spreads
Stay ahead of the game with today’s market insights brought to you by the expert team at vtmarkets.com.
EURUSD (4-Hour Chart)
The EURUSD is having so far the best day since February 1 on Monday, boosted by a weaker US Dollar across the board on the back of an improvement in risk sentiment and a retreat in Treasury yields. The pair was currently trading at the 1.0590 level and facing some headwinds around the psychological resistance at the 1.0600 level. On the data side, US data showed a larger-than-expected decline in Durable Goods Orders. The headline dropped by 4.5%, against expectations of a 4% slide. Most details of the report were positive. A different report showed Pending Home Sales surged 8.1% in January, surprising market participants that expected an increase of 1%. Compared to a year ago, sales were down 24.1%. The US Dollar further weakened after the economic figures, helping EURUSD move further north.
From the technical perspective, the four-hour scale RSI indicator climbed back to the neutral area, showing the heavy selling pressure has weakened. As for the Bollinger Bands, the pair was trading around a 20-period moving average and the gap between upper and lower bands became smaller, suggesting the market is waiting for more clues for the future path. In our view, Investors should be aware of the downside tendency has not vanished, the pair is still more favored to the south path despite a strong corrective rebound on Monday.
Resistance: 1.0788, 1.0929
Support: 1.0508, 1.0401
XAUUSD (4-Hour Chart)
The XAUUSD regain positive strength and rebound to above the $1815 mark at the moment of writing, as the US dollar lost its upside momentum since the European trading session. This week, a bunch of mid-tier US macroeconomic releases could help shape how much more room gold price can have to the downside ahead of the crucial March 22 Federal Reserve (Fed) meeting. The US Durable Goods Orders data released earlier today came out mixed. The headline figure was worse than expected, showing a bigger decline (-4.5%) than what the consensus had forecast (-4.0%). Gold price reacted modest-but-positively to this release as the US Dollar witnessed heavy selling transactions.
From the technical perspective, the four-hour scale RSI indicator returned to the 45 figures, suggesting the pair were still surrounded by slight bearish traction. As for the Bollinger Bands, the pair was supported by the lower band and capped by the 20-period moving average, showing the pair continued to move in the downside pattern.
Resistance: 1850, 1870, 1900
Support: 1820, 1800
Stay ahead of the game with today’s market insights brought to you by the expert team at vtmarkets.com.