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Daily Technical Insights 30 May 2023


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

Picks of the Day Analysis

EUR/USD (4 Hours)

EUR/USD weakens against US Dollar amidst data anticipation and market focus on Debt limit suspension.

The EUR/USD pair maintained its position above the previous week’s lows but experienced another daily loss, closing at its lowest level since March 17. Despite staying above 1.0700 and avoiding new monthly lows, the euro weakened against the US dollar during the European session and declined against the pound. The currency lagged other major currencies on Monday, failing to break its negative trend against the greenback. The focus shifted to Spain’s upcoming release of the preliminary Consumer Price Index (CPI) report for May, which holds significance for European Central Bank (ECB) officials and market expectations. Meanwhile, the US dollar posted mixed results, with a slight gain of less than 0.1% against a basket of currencies, reaching its highest close in two months above 104.20.

As market expectations shift from a pause to a potential 25-basis-point increase at the next Federal Open Market Committee (FOMC) meeting, any decline in the US dollar is expected to be limited. With US markets closed for Memorial Day, Monday saw subdued trading activity, as market participants analyzed the weekend’s agreement in Washington to suspend the debt limit, while awaiting Congressional approval. Attention also turned to Friday’s US consumer inflation data and the upcoming release of key economic reports throughout the week, including housing data and consumer confidence on Tuesday, as well as the ADP employment report on Thursday and Nonfarm Payrolls on Friday.

Chart EURUSD by TradingView

According to technical analysis, the EUR/USD pair is experiencing a slow movement on Monday due to holidays in the UK and US markets. This has resulted in a narrower range between the upper and lower bands of the Bollinger Bands. It is anticipated that the EUR/USD will make a modest upward move today, aiming to reach the middle and upper bands of the Bollinger Bands. The Relative Strength Index (RSI) is currently at 40, suggesting 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) holds steady amid optimism over US Debt Ceiling agreement.

Gold prices (XAU/USD) remained steady at $1,943 per troy ounce on Monday, unaffected by holidays in Europe and the United States. Investor optimism prevailed at the start of the week following an agreement on the debt ceiling reached between US President Joe Biden and House Speaker Kevin McCarthy. However, the deal still requires approval from Congress, and concerns persist due to the limited time remaining before the deadline set by Treasury Secretary Janet Yellen on June 1.

Despite the holiday-induced low trading volumes, stock futures rose, reflecting the positive market sentiment and dampening the appeal of safe-haven assets like gold. With no significant events to monitor at the beginning of the week, the macroeconomic calendar lacks substantial releases, although noteworthy data is expected in the coming days.

On Tuesday, the US will publish the CB Consumer Confidence report, while Germany and the Eurozone will release preliminary estimates of their May Harmonized Index of Consumer Prices (HICP) in the following days. Furthermore, the US will unveil the ADP Survey on private job creation ahead of the Nonfarm Payrolls report scheduled for Friday. These figures hold significance for policymakers and could fuel speculation about future decisions by central banks.

Chart XAUUSD by TradingView

According to technical analysis, the XAU/USD is moving slower on Monday due to the US market holiday. There is a possibility that the XAU/USD will attempt to move higher and reach the middle and upper bands of the Bollinger Bands today. Currently, the Relative Strength Index (RSI) stands at 38, indicating that the XAU/USD is in a neutral position.

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.