Spreads
Spreads
Spreads
Spreads
Spreads
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
EUR/USD (4 Hours)
EUR/USD Resilient Amid Strong Dollar and Economic Factors
The EUR/USD pair faced losses on Tuesday due to a robust US Dollar and rising risk aversion, yet managed to remain above a vital support level. Italy’s surprise announcement of a bank profits windfall tax caused the Italian stock index to plummet over 2%, while Wall Street indices also dipped following Moody’s downgrade of US banks. The European Central Bank’s June survey indicated decreased inflation expectations, affecting market views on rate hikes. Meanwhile, the US Dollar gained strength amidst risk aversion and mixed messages from Federal Reserve officials. The focus now shifts to Thursday’s influential US Consumer Price Index (CPI) report.
Based on technical analysis, the EUR/USD remained steady on Tuesday as the market awaited upcoming US inflation data for the week, specifically CPI and PPI, while also attempting to move toward the middle band of the Bollinger Bands. Right now, the price is slightly below the middle band, creating a small gap between the upper and lower bands of the Bollinger Bands. The Relative Strength Index (RSI) is currently at 46, showing that the EUR/USD is in a phase of consolidation.
Resistance: 1.1038, 1.1121
Support: 1.0915, 1.0839
XAU/USD (4 Hours)
XAU/USD Hits Four-Week Low as US Dollar Strengthens Amid Fed Remarks and Economic Uncertainty
During the early American trading session, XAU/USD plummeted to a new four-week low at $1,922.74 per troy ounce. This drop was fueled by a surge in demand for the US Dollar following comments from Federal Reserve officials and in anticipation of the upcoming release of the US July Consumer Price Index.
Philadelphia Federal Reserve Bank President Patrick Harker’s statements highlighted a move toward normalcy in economic conditions. Despite optimism for a smooth economic transition, concerns persisted over supply chain issues. Harker also suggested the possibility of the Fed exercising patience with interest rates, depending on future data, including the pivotal decision in September. Despite global stock declines and worries about economic uncertainty, gold’s price decline persisted. However, a slight pullback in Treasury yields prevented a more significant appreciation of the US Dollar.
Based to technical analysis, the XAU/USD experienced a minor decrease on Tuesday, managing to touch the lower band of the Bollinger Bands. Currently, the price is slightly below the middle band within the Bollinger Bands. The Relative Strength Index (RSI) stands at 40, suggesting that the XAU/USD pair is somewhat in a bearish mode.
Resistance: $1,936, $1,954
Support: $1,920, $1,902
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