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Daily Technical Insights 26 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 declined significantly on Tuesday, dropping to as low as 1.0963 amid risk aversion and renewed banking concerns. Despite US yields decreasing, the US Dollar Index rose by 0.55%, while German bonds rallied, causing the German 10-year yield to fall by 6.5% to 2.34%. ECB officials continued to hint at more rate hikes, with market participants seeing a 25 bps rate hike as more likely. Positive US housing data exceeded expectations, reflecting resilience in the economy, while Thursday will see the US reporting Q1 GDP and consumer inflation.

Chart EURUSD by TradingView

According to technical analysis, the EUR/USD pair has fallen and was able to break below our support levels. Currently, the price has moved below the middle band of the Bollinger band, with expectations of moving even lower and targeting the lower band. It is anticipated that the EUR/USD will reach the support level of 1.0949. The Relative Strength Index (RSI) is currently at 44, indicating a bearish market for the EUR/USD.

Resistance: 1.0997, 1.1053

Support: 1.0949, 1.0916

XAU/USD (4 Hours)

On Tuesday, financial markets turned risk-averse, leading to a rise in demand for the US Dollar and gold (XAU/USD). The US Dollar initially gained on the news of major central banks reducing their dollar operations with the Fed from daily to once a week starting May 1, as well as discouraging data from the US. The CB Consumer Confidence Index fell in April, and any reading below 80 is viewed as a sign of a near-term recession. Despite Treasury yields being under pressure, the US Dollar remains strong, preventing XAU/USD from rallying beyond $2,000.

Chart XAUUSD by TradingView

Based on technical analysis, XAU/USD has reached the $2,000 level and has the potential to continue upward toward the upper band of the Bollinger band, indicating a bullish market for today. The Relative Strength Index (RSI) currently stands at 53, suggesting a likelihood 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.

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