Spreads
Spreads
Spreads
Spreads
Spreads
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EUR/USD (4 Hours)
EUR/USD Extends Losses Amidst Dollar Strength and Market Caution
During the American session, the EUR/USD currency pair faced its fifth consecutive day of decline, shifting into negative territory. The US Dollar maintained its robust stance, benefiting from risk aversion and higher Treasury yields. Initially rising to approximately 1.0920, the pair later weakened, settling around the 1.0860 range.
The Euro’s initial surge in the American session gave way to a reversal, driven by the diminishing yield difference between US and German bonds, which exerted downward pressure on the EUR/USD. Furthermore, a drop in equity values amplified demand for the US Dollar. Looking ahead, Eurostat is set to release the final July Consumer Price Index, expected to hold no significant surprises with an annual rate of 5.3%. Additionally, Construction Output data for June will also be reported.
The prevailing narrative continues to favor the US Dollar, supported by recent US economic indicators and a climate of general market caution. As such, any potential recoveries in the EUR/USD are likely to be restricted until a shift in market sentiment occurs.
Based on technical analysis, the EUR/USD moves lower on Thursday, creating a push for the lower band of the Bollinger Bands. Currently, the price is moving around the middle band of the Bollinger Bands. The Relative Strength Index (RSI) presently stands at 44, signifying that the EUR/USD is currently in a bearish sentiment with a potential to goes back to neutral stance.
Resistance: 1.0935, 1.1038
Support: 1.0865, 1.0789
XAU/USD (4 Hours)
XAU/USDHits Lowest Levels Since March Amid Gloomy Market Mood and Central Bank Concerns
Gold prices are facing downward pressure, falling to their lowest since March and hovering around the $1,890 mark, as a somber market sentiment persists. The risk-averse stance among investors was triggered by the US Federal Reserve’s recent release of the August meeting minutes, revealing apprehensions regarding inflation risks and potential for further rate hikes. This uncertainty extends beyond the Fed, with the Bank of England hinting at prolonged rate hikes and the Reserve Bank of New Zealand considering potential increases in the future. Amid these central bank concerns, gold’s value remains under strain.
Based on technical analysis, the XAU/USD witnessed a slight decrease on Thursday, the price managed to create a push for the lower band of the Bollinger Bands during this movement. Currently, the price is moving near the middle band of the Bollinger Bands. The Relative Strength Index (RSI) is currently at 39, 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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