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Daily Technical Insights 2 May 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 pair experienced fluctuations on Monday and closed lower near an intraday low of 1.0963. The US dollar gained support from rising government bond yields and positive macroeconomic figures, including the April ISM Manufacturing PMI improving more than anticipated. Wall Street also saw gains, following news that JP Morgan rescued First Republic Bank assets with approval from the US regulator. Germany will release March Retail Sales and the Eurozone will unveil the preliminary estimate of the April Harmonized Index of Consumer Prices. The week will continue with the Fed and ECB’s monetary policy decisions and end with the US Nonfarm Payrolls report.

Based on the technical analysis, the EUR/USD pair has moved lower and broken below the 1.1000 level. Currently, the price has moved slightly higher after reaching the lower band of the Bollinger band, with expectations of moving higher and targeting the middle band. It is anticipated that the EUR/USD will reach the resistance level at 1.1013. The Relative Strength Index (RSI) is currently at 47, indicating that the market is neutral for the EUR/USD.

Resistance: 1.1013, 1.1068

Support: 1.0962, 1.0913

XAU/USD (4 Hours)

Gold (XAU/USD) prices were volatile on Monday, falling to $1,977 per troy ounce during the Asian session before recovering to $2,005.98 ahead of the US stock market opening. Thin volumes exacerbated movements, with most major financial markets closed for Labour Day. The US Dollar surged during the American session after the US published upbeat data, including March Construction Spending, which rose by 0.3% MoM, and the April ISM Manufacturing PMI, which printed at 47.1, beating expectations despite still signaling contraction. The rising US government bond yields also supported the dollar, with the 10-year Treasury note currently yielding 3.55%.

Meanwhile, the stock markets rose following news that JP Morgan took over the troubled First Republic Bank, which collapsed after customers withdrew over $100 billion in March. The Federal Deposit Insurance Corporation (FDIC) backed the deal, calming fears.

Based on technical analysis, XAU/USD is still moving in consolidation mode reaching the high and low. XAU/USD has the potential to move back higher as the price is moving toward the middle band after getting the lower band of the Bollinger band. The Relative Strength Index (RSI) currently stands at 47, suggesting a neutral trend in XAU/USD.

Resistance: $1,993, $2,005

Support: $1,977, $1,969

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