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Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
EUR/USD (4 Hours)
EUR/USD Hits Two-Month Low as US Debt Ceiling Uncertainty Fuels Dollar Strength
The EUR/USD pair reached a two-month low on Thursday, trading around 1.0720 as the US dollar continued to exhibit strength due to concerns over the unresolved US debt ceiling negotiations. The absence of a deal on extending the debt ceiling created a negative sentiment, and House Speaker Kevin McCarthy’s update during the day indicated that a deal had not yet been reached.
The US data released on Thursday, including an upward revision of Q1 GDP growth to 1.3% and better-than-expected Initial Jobless Claims, further boosted the USD ahead of the Wall Street opening. Meanwhile, the Euro faced additional pressure as Germany reported a downward revision of Q1 GDP to -0.3% quarter-on-quarter.
On Friday, the US is scheduled to release relevant figures, such as April Durable Goods Orders and the Personal Consumption Expenditures Price Index. No significant macroeconomic data is expected from the EU.
According to technical analysis, the EUR/USD pair is continuing to move slowly lower and has reached our support level, which is also exerting pressure on the lower band of the Bollinger Bands.
It is expected that the EUR/USD will attempt a slight upward movement today and reach the middle band of the Bollinger Bands. The Relative Strength Index (RSI) is currently at 33, back above the oversold area, indicating that the bearish sentiment for the EUR/USD may be easing for today.
Resistance: 1.0788, 1.0848
Support: 1.0715, 1.0655
XAU/USD (4 Hours)
Gold (XAU/USD) Breaks Key Retracement Level as US Dollar Gains Support from Upbeat Economic Data and Debt Ceiling Concerns Persist
Gold prices (XAU/USD) broke below the 50% retracement level of the March/May rally, reaching a low of $1,930.20 during European trading hours. Although it bounced from that level, it is struggling to recover above it. The US Dollar found support due to a negative market sentiment and positive macroeconomic figures in the United States.
The country revised its Q1 economic growth upward to 1.3% according to the GDP report, indicating a potential avoidance of recession but also raising the possibility of rate hikes to control inflation. The strength of the US currency led to stock markets remaining subdued, as concerns about the US debt-ceiling limit persisted.
Negotiations between President Joe Biden and top Republicans continue, with the opposition demanding spending cuts for an extension of the debt ceiling. Progress has been made, but a deal is unlikely to be reached today, according to House Speaker Kevin McCarthy.
According to technical analysis, the XAU/USD is moving lower on Thursday and exerting pressure on the lower band of the Bollinger Bands.
There is a possibility that the XAU/USD will attempt to move higher and reach the middle band of the Bollinger Bands today. Currently, the Relative Strength Index (RSI) stands at 34, indicating that the XAU/USD is in a neutral but still bearish stance.
Resistance: $1,962, $1,991
Support: $1,934, $1,913
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
