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Daily Technical Insights 19 April 2023


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

EUR/USD (4 Hours)

The EUR/USD rose on Tuesday due to a weaker US Dollar, and it remained in a small range during the American session. The April German ZEW survey results were mixed, with the Economic Sentiment Index falling unexpectedly while the Current Situation Index improved. Wednesday’s economic calendar includes Euro Zone’s March Consumer inflation report, February Current Account, and Construction Output. The US Dollar fell on Tuesday, with little change in US yields and mixed performance on Wall Street. The Federal Reserve will release the Beige Book on Wednesday, and the latest comments from Fed officials suggest the possibility of one more rate hike. The market sees the ECB raising rates beyond May as Fed rate cuts got priced out, and the Euro Zone’s yields rose on Tuesday, offering support to EUR/USD.

Based on technical analysis, the EUR/USD saw a slight rally on Tuesday and broke the previous resistance level, reaching the middle band of the Bollinger band. It is expected that the market will continue to consolidate with a possibility of an upward movement toward the resistance level at 1.0998. The RSI is currently at a level of 51, indicating that the EUR/USD is in consolidation mode.

Resistance: 1.0998, 1.1026

Support: 1.0966, 1.0923

XAU/USD (4 Hours)

Gold initially rose on Tuesday, driven by optimism from China, reaching a high of $2,005.79 per troy ounce during Asian hours. However, the positive sentiment was short-lived as China’s Q1 Gross Domestic Product (GDP) showed that the economy grew by 2.2% in the three months to March, beating market expectations, but failed to boost risk appetite in European and American data. Wall Street opened lower but has since recovered slightly, and US Treasury yields remained stable. Despite the broad weakness of the US dollar, it found some demand during the European session due to tepid macroeconomic figures that weighed on high-yielding assets’ demand.

Based on technical analysis, XAU/USD is currently in a consolidation phase, but it has been able to move slightly higher and maintain its position above the $2,000 level. The price is currently situated in the middle band of the Bollinger band, which indicates a neutral trend in the market. The key support level is now at the $2,000 level. The RSI is hovering around the 45 levels but indicating that there is still potential for a slight upward movement.

Resistance: $2,010, $2,020

Support: $2,000, $1,990

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