Spreads
Spreads
Spreads
Spreads
Spreads
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EUR/USD (4 Hours)
EUR/USDTrades Rangebound as USD Weakens Despite Tepid Chinese Data and ECB Comments
The EUR/USD pair traded within a narrow range on Monday, hovering around 1.1240. The US Dollar weakened during American trading hours, despite tepid Chinese GDP data. European Central Bank (ECB) officials provided little fresh insight, with policymakers mentioning the need to tighten policy and raise interest rates based on upcoming data. ECB President Christine Lagarde expressed concerns about stagnant GDP growth and increasing trade restrictions. The Fed and ECB will announce their monetary policy decisions next week. In terms of US economic data, the NY Empire State Manufacturing Index for July came in below expectations but exceeded the previous month’s figure, while June Retail Sales, Industrial Production, and Capacity Utilization are set to be released on Tuesday.
According to technical analysis, the EUR/USD pair is experiencing a flat consolidating movement on Monday, creating the Bollinger Bands to squeeze. The price is still near the upper bands of the Bollinger Bands. 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 78, 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) Temporarily Ease as Market Awaits Central Bank Updates and US Inflation Progress
Gold prices showed a temporary decline on Monday, with XAU/USD trading around $1,954, remaining flat for the day after reaching a low of $1,945.72 per troy ounce. Investor excitement in the financial markets calmed down as attention turned to upcoming key events, including central bank announcements and an update on US inflation. The US Dollar made a modest recovery after its recent collapse, although its gains were insignificant compared to the sell-off triggered by speculation that the Federal Reserve may end its tightening cycle earlier than expected. US inflation data, such as the Consumer Price Index (CPI) and Producer Price Index (PPI), came in below expectations, suggesting that the Fed may only implement one rate hike instead of the anticipated two.
According to technical analysis, the XAU/USD pair underwent a consolidating movement on Monday, around the middle 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 59, within the overbought area, indicating a neutral but slightly bullish trend for the XAU/USD.
Resistance: $1,965, $1,981
Support: $1,946, $1,929
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