Spreads
Spreads
Spreads
Spreads
Spreads
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EUR/USD (4 Hours)
EUR/USD Rises Amid Dovish Fed Comments, ECB Policy Announcements Awaited
The EUR/USD pair saw gains as Federal Reserve Chair Jerome Powell’s dovish remarks outweighed slight improvements in the FOMC statement on economic growth. Traders are now focused on upcoming policy announcements from the ECB and BoJ, along with key US economic data. Although Treasury yields and the dollar initially strengthened, Powell’s comments suggested a growing possibility of the end of rate hikes. Market participants await crucial GDP, claims, personal income, and other data before the Jackson Hole symposium and the September Fed meeting. The euro faces challenges from weakening eurozone economic data and a dovish ECB member. Uncertainty persists about whether EUR/USD has already peaked post-pandemic, with relative economic risk possibly favoring the US. Staying updated on central bank policies and economic indicators is vital for shaping the EUR/USD exchange rate.
According to technical analysis, the EUR/USD pair is experiencing a higher movement on Wednesday, leading the price to reach the upper band of the Bollinger Bands. This movement has also resulted in a closer gap between the bands. The Relative Strength Index (RSI) currently stands at 53, indicating that EUR/USD is back in neutral stance.
Resistance: 1.1121, 1.1208
Support: 1.1022, 1.0950
XAU/USD (4 Hours)
XAU/USD Prices Surge as Fed Raises Interest Rates, US Dollar Weakens
Gold prices have surged to weekly highs above $1,974 following the Federal Reserve’s decision to raise interest rates by 25 basis points. The increase in rates has led to a weakening of the US Dollar and an increase in market volatility. Market participants are now closely watching for any signals from the Fed that this could be the last rate hike, which could trigger a rally in bonds and drive Treasury yields lower, further benefiting the price of gold. However, the risk of a sharp reversal remains as the Fed is expected to maintain a hawkish tone until inflation shows clear signs of moving towards the target. The outcome of the Fed meeting will determine the direction of gold, and volatility is expected to persist with the European Central Bank’s decision and US economic data releases later in the week.
According to technical analysis, the XAU/USD pair initially experienced a higher movement and created a push to the upper band of the Bollinger Bands. Currently, the price is still pushing the upper band of the Bollinger Bands which shows there’s still a strong higher movement for Gold. Furthermore, the Relative Strength Index (RSI) currently stands at 65, indicating that the XAU/USD pair is starting to create a bullish trend.
Resistance: $1,985, $1,992
Support: $1,969, $1,955
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