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)
On Thursday, the EURUSD faced bearish pressure and dropped below the 1.0600 level in the early American trading session. This was due to the Unit Labor Costs in the US increasing at a more robust pace than expected in Q4, causing the US Dollar to gain more strength. While the US Federal Reserve and European Central Bank officials maintained their hawkish rhetoric, ECB President Christine Lagarde noted in a TV interview that bringing inflation down will take time. She repeated that the possibility of a 50 basis points rate hike this month is still on the table since inflation remains high. However, the Eurozone Harmonised Index of Consumer Prices (HICP) rose 8.5% YoY in February compared to January’s 8.6%, missing the market’s expectation of 8.2%. Additionally, the core annual reading printed at 5.6%, higher than the previous 5.3%, and above the market expectations.
In technical terms, the four-hour scale RSI indicator retreated to a neutral area of 46 figures, suggesting that the pair is currently moving sideways. As for the Bollinger Bands, the pair was falling below the 20-period moving average, and the size between the upper and lower bands has changed little, indicating that the pair has not made a directive move.
Resistance: 1.0788, 1.0929
Support: 1.0508, 1.0400
XAUUSD (4-Hour Chart)
On Thursday, XAUUSD declined as the US Dollar gained momentum due to concerning news. Financial markets are preoccupied with worries about inflation and how central banks will react to persistent price pressures. In February, the Eurozone Harmonised Index of Consumer Prices (HICP) rose 8.5% YoY, a slight improvement from January’s 8.6%. However, it missed market expectations of 8.2%. Furthermore, the core annual reading came in at 5.6%, higher than both the previous and expected 5.3%. These troubling figures align with ECB President Lagarde’s statement that inflation’s decline is still unstable and remains too high. Meanwhile, the US Fed is also delivering hawkish messages, suggesting that the central bank may raise rates by more than 25 bps in upcoming meetings.
From a technical perspective, the RSI indicator on the four-hour scale was stable above the midline and measured 60 at the time of writing. This suggests that the pair had strong positive momentum. The Bollinger Bands showed that the pair was trading firmly in the upper area, indicating that gold retained its bullish momentum and was more likely to continue on an upward trajectory shortly.
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.
