Spreads
Spreads
Spreads
Spreads
Spreads
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EUR/USD (4 Hours)
EUR/USD Hits Lowest Level Since July Amidst Resurgent US Dollar Strength
The EUR/USD pair broke below the 1.0900 mark during the American session, marking its lowest point since early July, driven by the robust US Dollar. The US Dollar’s momentum was bolstered by higher US Treasury yields and cautious market sentiment, with the DXY testing July highs near 103.50. Despite mixed US data, the Federal Open Market Committee (FOMC) minutes revealed a cautious stance, hinting at potential rate stability. While some FOMC members expressed concerns about further tightening, the US Dollar regained strength, with the EUR/USD pair facing the prospect of extended losses amidst a backdrop of waning market sentiment and a resurgent Greenback.
Based on technical analysis, the EUR/USD moves lower on Wednesday, creating a push for the lower band of the Bollinger Bands. Currently, the price is moving around the lower of the Bollinger Bands. The Relative Strength Index (RSI) presently stands at 34, signifying that the EUR/USD is currently in a bearish sentiment.
Resistance: 1.0935, 1.1038
Support: 1.0865, 1.0789
XAU/USD (4 Hours)
XAU/USD Holds Above $1,900 as US Dollar Dominance Persists Amid Positive Economic Signals
Spot gold maintains a position just above the $1,900 threshold as the US Dollar retains its strength in a risk-averse climate, supported by favorable US data. July’s report showed a 0.1% month-on-month increase in Building Permits and a substantial 3.9% rise in Housing Starts, surpassing expectations. Additionally, Industrial Production climbed by 1%, while Capacity Utilization reached 79.3%. These figures, coupled with upbeat Retail Sales and the perception that the Federal Reserve is concluding its tightening phase, fuel optimism that the US economy is steering clear of a significant downturn. The imminent release of the July meeting Minutes from the Federal Open Market Committee (FOMC) prompts anticipation for insights into future monetary policy. Market consensus leans toward the Fed maintaining its stance in September and possibly throughout the year, with a potential shift toward rate cuts in 2024. The labor market’s persistent tightness remains a focal point for the data-driven central bank. Odds favoring a September hold stand at 88.5%, while the probability of a 25 basis points hike in November is at 36.2%, according to the CME FedWatch Tool, as markets seek confirmation on the trajectory beyond September. While definitive answers may be unlikely, the FOMC document offers a chance for further clarity.
Based on technical analysis, the XAU/USD witnessed a slight decrease on Wednesday, the price managed to create a push for the lower band of the Bollinger Bands during this movement. Currently, the price is moving at the lower band of the Bollinger Bands. The Relative Strength Index (RSI) is currently at 28, indicating that the XAU/USD pair is exhibiting a somewhat bearish sentiment.
Resistance: $1,899, $1,912
Support: $1,892, $1,885
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