• CL-OIL


  • Cocoa-C


  • View more

Daily Technical Insights 25 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 started the week strong, reaching the 1.1050 level. However, doubts were raised about the sustainability of the move due to subdued activity and upcoming key data releases. Despite this, the Euro performed well on Monday, while the US Dollar weakened as risk appetite rose and US yields dropped. Wall Street’s equity prices turned positive, and US bonds rose, with the 10-year yield falling to 3.50% and the 2-year yield dropping to 4.14%. On Tuesday, the US will release data on the S&P/Case Shiller Home Price Index, New Home Sales, and Consumer Confidence, with Thursday’s Q1 GDP report being the most important.

The Euro was supported by expectations of more rate hikes from the European Central Bank (ECB), with ECB Governing Council member Pierre Wunsch stating that he would only agree to halt interest rate hikes once wage growth slows. The next ECB meeting is on May 4th, the day after the Fed’s meeting. Meanwhile, the German IFO survey showed mixed numbers, with the Expectations indicator improving from 91 to 92.2. Eurozone GDP data and German inflation will be released on Friday.

According to technical analysis, the EUR/USD pair has been exhibiting an upward trend, successfully surpassing previous resistance levels. At present, the price has climbed to the upper band of the Bollinger band, and it appears that the pair is making efforts to sustain its upward momentum. It is expected that the EUR/USD will reach a resistance level of 1.1073. The Relative Strength Index (RSI) currently stands at 71, indicating a bullish market for the EUR/USD.

Resistance: 1.1073, 1.1131

Support: 1.1042, 1.1000

XAU/USD (4 Hours)

On Monday, financial markets were cautious and spot gold (XAU/USD) consolidated at around $1,986 per troy ounce, with the safe-haven US dollar out of investors’ radar amid recession-related concerns. United States data, specifically the first estimate of the Q1 Gross Domestic Product (GDP) due to be published this week, could fuel, or cool such fears. The economy is expected to have grown at an annualized pace of 2% in the first quarter, lower than the previous quarterly reading of 2.6%. Meanwhile, European, and American stock markets struggled to attract speculative interest, trading a handful of points below their opening levels. The Nasdaq Composite was the worst performer, down 102 points. Government bond yields ticked lower, with the 10-year Treasury note yielding 3.52% and the 2-year note offering 4.15%.

According to technical analysis, the XAU/USD pair is approaching the $2,000 level, with its target set on the upper band of the Bollinger band after surpassing the middle band. This indicates the possibility of a higher movement today. The Relative Strength Index (RSI) currently stands at 53, having moved up from below, suggesting a potential for further upward movement.

Resistance: $2,005, $2,018

Support: $1,988, $1,974

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