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Daily Technical Insights 21 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 remained stable below 1.1000 due to mixed US equity markets and doubts about the market outlook. The European Central Bank’s accounts showed that the central bank would have signaled more rate hikes if not for the banking crisis, and a rate hike is expected at the May 4 meeting. US data was below expectations, with Initial Jobless Claims, Continuing Claims, and Philly Fed Manufacturing Survey lower than expected, and Existing Home Sales also dropped. On Friday, the S&P Global PMIs are due, which could affect market sentiment and benefit the US Dollar if the readings are negative.

According to technical analysis, the EUR/USD has been moving slightly flat and remains between the support and resistance levels from the previous day. The Bollinger band is also narrowing, indicating that the market is in a flat range. We are expecting better market movement today with the release of PMI data in the EU. The Relative Strength Index (RSI) is currently at 50, indicating that the EUR/USD is in a waiting condition.

Resistance: 1.0975, 1.1026

Support: 1.0923, 1.0877

XAU/USD (4 Hours)

On Thursday, XAU/USD rose above the $2,000 mark as financial markets became more cautious due to concerns about the economic future and the weak US dollar. Global stock markets traded softly, with US indexes rebounding slightly from early lows, and government bond yields falling after disappointing US data suggested an upcoming economic downturn. Initial jobless claims rose, while the Philadelphia Fed Manufacturing Survey and existing home sales both performed worse than expected in April. US Treasury Secretary Janet Yellen commented on the relationship between the US and China, stressing the importance of maintaining a constructive and fair relationship while warning of severe consequences for any violations of sanctions on Russia by Chinese companies. She also emphasized the need for the government to ensure the soundness of the banking system in light of the recent financial crisis.

Based on technical analysis, XAU/USD has risen back above the $2,000 mark but is still experiencing consolidation. It is currently trading in the middle band of the Bollinger band, indicating a neutral trend in the longer term. The Relative Strength Index (RSI) is hovering around 50, suggesting that XAU/USD is waiting for its next move.

Resistance: $2,010, $2,020

Support: $1,997, $1,990

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