• CL-OIL


  • Cocoa-C


  • View more

Daily Technical Insights 4 April 2023


EURUSD (4-Hour Chart)

Last Friday, the EUR/USD closed at 1.0836, falling by 0.57% on the daily price range. However, demand for the US Dollar decreased after the opening of London’s trading session on Monday, leading to a recovery of the EUR/USD pair above the 1.07800 threshold, which is the lowest in a week. The pair is currently trading near a daily high of 1.09100 at 1.08891.

US Treasury yields increased ahead of Wall Street’s open, with the 10-year note currently yielding 3.50% and the 2-year note yielding 4.08%. S&P Global released the final estimates of the March Manufacturing PMIs for the Eurozone, with the German figure upwardly revised to 44.7 and the EU figure improving from the preliminary estimate from 47.1 to 47.3. The US official ISM Manufacturing PMIs is 46.3 lower than the forecasted 47.5, leading the Cable up to the daily high of 1.09166.

The 4-hour chart shows that buyers are struggling to regain control. Technical indicators changed course after nearing oversold readings and currently head north above their midlines, but with limited strength. The 100 SMA maintains its bullish slope below the aforementioned daily low, while the EUR/USD pair struggles to overcome a directionless 20 SMA. If the pair breaks through the immediate resistance level of 1.0910, buyers could have better chances. The RSI sits at 63.34.

Resistance levels: 1.0910 1.0950 1.1000

Support levels: 1.0830 1.0790 1.0750

XAUUSD (4-Hour Chart)

On Monday, the price of gold initially fell to around $1,955, but later rebounded and climbed above $1,980. This was due in part to the benchmark 10-year US Treasury bond yield dropping below 3.5% following the release of a negative US ISM Manufacturing PMI report, which helped XAU/USD gather bullish momentum. However, the metal’s gains were limited by concerns that China and Brazil may drop the US Dollar for cross-border trade. At the time of writing, the price of gold was trading at $1985.30.

On the technical side, the bears for gold are hopeful due to the bearish MACD signals and the clear downside break of a two-week-old ascending trend line. The sustained trading below the 200-HMA and 100-HMA confluence also favors the bears. However, the latest recovery remains uncertain unless the quote crosses the $1,960 support-turned-resistance line. Even if it does cross this line, the HMA convergence near $1,970 poses a challenge for the XAU/USD bulls. Furthermore, a downward-sloping resistance line from March 20, currently near $1,987, restricts the short-term upside of the Gold price. RSI sits at 58.12.

Resistance: 1990, 2000

Support: 1957, 1950, 1937