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Daily Technical Insights 14th July 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 Gains Momentum Amid Dollar Sell-Off and ECB’s Interest Rate Speculation

The EUR/USD currency pair extended its upward trajectory for the sixth consecutive day as the US Dollar experienced another round of selling pressure, driven by US inflation data indicating a slowdown. The negative momentum of the Dollar persists, potentially paving the way for further gains, although the extent of the rally suggests a potential consolidation or modest correction.

The European Central Bank (ECB) released minutes from its recent meeting, echoing President Lagarde’s comments about potential interest rate hikes beyond July if deemed necessary. Meanwhile, upcoming economic growth forecasts and trade balance data from the European Commission, along with declining US and Eurozone yields, continue to shape the market sentiment.

The latest Producer Price Index figures highlighted a further slowdown in inflation, leading to additional losses for the Dollar, while the upcoming Consumer Confidence data is anticipated on Friday.

Chart EURUSD by TradingView

According to technical analysis, the EUR/USD pair is experiencing an upward movement on Thursday, pushing towards the upper band of the Bollinger Bands. Currently, the price is still near the upper bands of the Bollinger Bands, and the bands themselves indicate the potential for further upward movement. This suggests that the price has the potential to reach the upper band of the Bollinger Bands.

Additionally, the Relative Strength Index (RSI) is currently at 84, which is within the overbought area, indicating a bullish trend for the EUR/USD.

Resistance: 1.1291, 1.1382

Support: 1.1173, 1.1086

XAU/USD (4 Hours)

Gold (XAU/USD) Consolidates as Markets Remain Optimistic on US Inflation Easing

Gold prices held steady at $1,958 per troy ounce as financial markets maintained an optimistic outlook on easing United States (US) inflation. The release of the Producer Price Index (PPI) indicated a modest year-on-year and month-on-month increase of 0.1%. The core annual reading of 2.4% was lower than expected and the previous figure, reinforcing positive sentiment.

Despite the US Dollar’s decline, investors turned their attention to high-yielding assets, resulting in limited gains for gold. While Wall Street maintained modest gains, comments from San Francisco Federal Reserve President Mary Daly expressing the need for rate hikes impacted stocks, citing the economy’s momentum and uncertain wage growth’s impact on inflation.

Chart XAUUSD by TradingView

According to technical analysis, the XAU/USD pair underwent a consolidating movement on Thursday, near the upper band of the Bollinger Bands. Suggesting the possibility of further upward movement, this indicates the potential for the price to reach the upper band of the Bollinger Bands.

Furthermore, the Relative Strength Index (RSI) is currently at 71, within the overbought area, indicating a bullish trend for the XAU/USD.

Resistance: $1,965, $1,981

Support: $1,946, $1,929

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

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