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Daily Technical Insights 16th June 2023


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

EUR/USD (4 Hours)

EUR/USD Surges to One-Month High on ECB’s Hawkish Tone and Dollar Weakness

The EUR/USD pair experienced a significant surge on Thursday, reaching its highest level in a month at 1.0952. The pair maintained its gains, indicating that the rally may continue. The European Central Bank (ECB) played a key role in this upward movement by raising interest rates as anticipated, while keeping the forward guidance unchanged. ECB President Lagarde’s remarks suggested another rate hike in July, alongside higher inflation forecasts. This news, combined with rising German bond yields and declining US Treasury yields, further bolstered the EUR/USD. Despite Federal Reserve Chair Powell’s hawkish stance, the US Dollar remained weak due to improving risk sentiment and positive US economic data. The upcoming release of Eurozone inflation data and the University of Michigan Consumer Sentiment Index in the US are anticipated to influence market sentiment.

Chart EURUSD by TradingView

According to technical analysis, the EUR/USD pair experienced an upward movement on Thursday and was able to reach the upper band of the Bollinger Bands. The Relative Strength Index (RSI) is currently at 78, indicating that the EUR/USD now in bullish trend.

Resistance: 1.0982, 1.1034

Support: 1.0892, 1.0803

XAU/USD (4 Hours)

XAU/USD Retreats as Fed Maintains Neutral Stance, US Recession Fears Linger

The price of gold (XAU/USD) faced selling pressure after a tentative recovery, falling back from its near $1,934.74 level during the London session. The retreat came as the Federal Reserve (Fed) delivered a neutral interest rate decision, signaling that further rate hikes are on the horizon to combat persistent inflation. Market sentiment remained cautious amid concerns of a US recession, fueled by the Fed’s emphasis on ongoing inflation and tight labor market conditions. Additionally, the US Dollar Index (DXY) experienced a decline, hovering around 103.15, as investors awaited the release of monthly Retail Sales data. Preliminary reports indicated a contraction of 0.1%, prompting a closer examination to determine if reduced prices for essentials or economic weakening were the cause.

Chart XAUUSD by TradingView

According to technical analysis, the XAU/USD pair is moving higher and moves above the middle band of the Bollinger Bands. Currently, the Relative Strength Index (RSI) is at 57, indicating that the XAU/USD is in neutral stance.

Resistance: $1,963, $1,972

Support: $1,939, $1,932

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