Spreads
Spreads
Spreads
Spreads
Spreads
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EUR/USD (4 Hours)
EUR/USD Trades with Modest Losses as Speculative Interest Remains Optimistic
The EUR/USD pair experienced slight declines in a quiet Monday session as the markets digested last week’s central bank activities. Speculative interest grew more optimistic as the tightening cycle neared its end, potentially averting potential recessions, and inflation gradually eased from its mid-2022 peak. The US Dollar strengthened due to position adjustments following last week’s sell-off but remained fundamentally weak, reflecting the prevailing preference for riskier assets. While the Eurozone’s macroeconomic calendar had limited impact, statements from European Central Bank (ECB) members, such as Philip R. Lane and Isabel Schnabel, elevated expectations for additional rate hikes. Lane deemed a hike in July appropriate, with September’s decision dependent on data, while Schnabel expressed concerns about past underestimations of inflation and suggested the potential for further rate increases this year. Looking ahead, upcoming releases of the April Current Account and Construction Output in the EU, along with May Building Permits and Housing Starts in the United States (US), will provide further insights. Additionally, Federal Reserve (Fed) Chairman Jerome Powell’s upcoming testimony before Congress on Wednesday may offer fresh clues on future monetary policy directions.
According to technical analysis, the EUR/USD pair moves slightly lower on Monday as the US market is in holiday reaching the middle band of the Bollinger Bands, with the potential to reach slightly lower before goes back higher. The Relative Strength Index (RSI) is currently at 58, indicating that the EUR/USD now in slowly back to the neutral stance.
Resistance: 1.0982, 1.1034
Support: 1.0892, 1.0803
XAU/USD (4 Hours)
XAU/USD Trades Range-bound as US Markets Observe Juneteenth Holiday
Spot Gold (XAU/USD) traded within a narrow range around $1,950 on a quiet Monday, as US markets were closed for the Juneteenth Holiday and the macroeconomic calendar lacked significant events. The metal eased slightly as the US Dollar corrected from oversold conditions, but overall market sentiment remained positive, with Asian and European shares posting minor losses. This week’s focus lies on Federal Reserve Chairman Jerome Powell’s congressional testimony and the Bank of England’s monetary policy decision. Powell’s statements, usually released beforehand, will draw speculation as they may provide insights into future monetary policy. The BoE is expected to implement a 25 basis points rate hike while keeping the possibility of additional increases open, with market players eyeing a terminal rate of 6% in early 2024.
According to technical analysis, the XAU/USD pair is moving lower and just break below the middle band of the Bollinger Bands, with the potential of moving lower move to reach the support level and the lower band of the Bollinger Bands. Currently, the Relative Strength Index (RSI) is at 43, indicating that the XAU/USD is in neutral stance but slightly bearish.
Resistance: $1,963, $1,972
Support: $1,939, $1,932
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