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Daily Technical Insights 27 April 2023


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

EUR/USD (4 Hours)

Although EUR/USD reached YTD highs on Wednesday, its short-term bullish outlook did not improve. The US Dollar strengthened, causing the pair to pull back from recent highs. This week, important data releases for the Eurozone are due, including consumer confidence data on Thursday, German inflation and EZ GDP growth on Friday, and the ECB meeting next week, where a rate hike is expected, but the extent of the hike is uncertain. While some data favors a 50 basis points hike, there are arguments for a more dovish approach due to renewed banking concerns and slowing inflation. The US Dollar posted mixed results on Wednesday, with the Euro outperforming, but the Dollar ended the day looking stronger as Wall Street slipped again. Important US data releases, including Q1 GDP and Consumer inflation, are expected on Thursday, ahead of next week’s FOMC meeting.

The EUR/USD pair has risen and broken above our resistance level, according to technical analysis. Currently, the price has moved above the middle band of the Bollinger band, with expectations of moving even higher and targeting the upper band. It is anticipated that the EUR/USD will reach the resistance level at 1.1073. The Relative Strength Index (RSI) is currently at 61, indicating a bullish market for the EUR/USD.

Resistance: 1.1073, 1.1131

Support: 1.1042, 1.1000

XAU/USD (4 Hours)

On Wednesday, Spot Gold (XAU/USD) struggled to surpass the $2,000 mark despite the improving market mood, while caution remains. US Dollar demand decreased due to positive earnings reports from large US corporations, but First Republic Bank’s troubles overshadowed it. Most Asian and European stock markets closed in the red, but Wall Street had modest gains. US data showed mixed results, and the US is set to publish Q1 GDP and Personal Consumption Expenditures Prices on Thursday.

Based on technical analysis, XAU/USD reached above the $2,000 level but then moved back below to $1,988 before going back higher and is currently at $2,000. XAU/USD has the potential to move even higher as the price is above the middle band and targeting the upper band of the Bollinger band. The Relative Strength Index (RSI) currently stands at 54, suggesting a neutral but bullish trend.

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.