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Daily Technical Insights 28 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 is set to close flat on Thursday, hovering above the 1.1000 level, with the Euro facing strong resistance around 1.1060. The undecided market is contributing to the slow moves around the pair, as traders await new data ahead of a busy week with the Federal Reserve (Fed) and the European Central Bank (ECB) meeting, as well as the US official employment report. The ECB is expected to deliver an interest rate hike next week, with the question being how much: 25 or 50 basis points. Data due on Friday, including Eurozone GDP estimates and Consumer Price Index data from Germany, France, and Spain, will be critical ahead of that meeting. The inflation figures will put pressure on the ECB to curb inflation, with interest rate markets showing the expected peak rate at 3.75%.

Based on the technical analysis, the EUR/USD pair has moved lower and broken our support level. Currently, the price has moved below the middle band of the Bollinger band, with expectations of moving lower and targetting the lower band. It is anticipated that the EUR/USD will reach the support level of 1.0987. The Relative Strength Index (RSI) is currently at 50, indicating that the market is neutral for the EUR/USD.

Resistance: 1.1050, 1.1072

Support: 1.1016, 1.0987

XAU/USD (4 Hours)

The US Dollar bulls were supported by the United States’ preliminary Gross Domestic Product (GDP) data for Q1, which capped the upside attempts in XAU/USD price yet again. Although the headline US Q1 GDP number missed estimates, resilient personal consumption, inventories accumulation, and higher inflation component grabbed investors’ attention, ramping up the odds of a 25 basis points (bps) Fed rate hike next week. The details of the report triggered a fresh rally in the US Treasury bond yields across the curve, with the benchmark 10-year US Treasury bond yields recapturing the critical 3.50% level, reducing the demand for the safe-haven US government bonds and XAU/USD price. However, the risk-on flows allowed XAU/USD price to finish the day almost unchanged. Investors now look forward to the US Core PCE Price Index data for a fresh directional move in the XAU/USD price, as well as the end-of-the-week flows and repositioning ahead of next week’s Federal Reserve policy announcements, which could influence the US Dollar valuations and XAU/USD price action.

Based on technical analysis, XAU/USD reached back below the $2,000 level showing that the market is still in consolidation mode. XAU/USD has the potential to move back higher as the price is moving toward the middle band and try to reach the upper band of the Bollinger band. The Relative Strength Index (RSI) currently stands at 54, suggesting a neutral but bullish trend.

Resistance: $1,993, $2,005

Support: $1,985, $1,972

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