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Daily Technical Insights 20 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 pair rose as the US Dollar lost gains on Wednesday, but pulled back to 1.0950 due to market fluctuations. Eurozone inflation remained high at 6.9% YoY in March, with the ECB suggesting more rate hikes ahead. The ECB Chief Economist expects a hike in May, with data determining the size, and the ECB will release meeting minutes on Thursday. The odds of a rate hike in May by the Fed are 83%. The EUR/USD pair is waiting for the next catalyst to move above 1.1000 or downside. Market sentiment may benefit the Euro if the risk appetite is high.

According to technical analysis, the EUR/USD experienced a slight decrease on Wednesday and broke its previous support level. It is currently trading around the middle band of the Bollinger band. It is predicted that the market will continue to consolidate, with the possibility of a downward movement toward the support level at 1.0923. The Relative Strength Index (RSI) currently stands at 47, indicating a potential slight decrease for the EUR/USD.

Resistance: 1.0975, 1.1026

Support: 1.0923, 1.0877

XAU/USD (4 Hours)

On Wednesday, financial markets started in risk-off mode, leading to a firmer demand for the US Dollar across the FX board. As a result, XAU/USD fell to its lowest in over two weeks but has since grounded higher to trade around $1,995 a troy ounce. This sentiment was triggered by US Federal Reserve officials’ suggestions of the need for more rate hikes to control inflation in the United States. The UK’s annual Consumer Price Index was higher than anticipated in March, while the Eurozone confirmed the annual Harmonized Index of Consumer Prices at 6.9% in the same period. Government bond yields are also on the rise due to inflation-related concerns. The US indexes are currently trading mixed, while Asian and European indexes edged lower.

According to technical analysis, XAU/USD has rebounded after experiencing a significant drop on Wednesday. It is currently trading at the middle band of the Bollinger band, indicating a neutral trend in the long term. The Relative Strength Index (RSI) is hovering around the 45 levels, suggesting the potential for a slight upward movement.

Resistance: $2,003, $2,020

Support: $1,990, $1,975

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