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 ‘s Upside Momentum Pauses Amidst Greenback Correction
The EUR/USD pair reached two-week highs at 1.0947 but retraced slightly, maintaining its position above 1.0900. The prevailing upward bias is fueled by US Dollar corrections due to recent disappointing US data, while Eurozone inflation rates suggest potential European Central Bank tightening. Despite the data undershooting expectations, upcoming US economic figures remain pivotal, including the Core Personal Consumption Expenditure Price Index and Jobless Claims on Thursday, followed by Friday’s Nonfarm Payrolls report. The US fundamentals’ relative strength compared to the Eurozone may cap further upside potential in the EUR/USD pair.
Based on technical analysis, the EUR/USD moves higher on Wednesday, reaching the upper band of the Bollinger Bands. Currently, the price is moving just below the upper band, showing that there’s potential for another higher movement. The Relative Strength Index (RSI) is currently at 65, signaling that the EUR/USD is in a bullish trend.
Resistance: 1.0935, 1.1003
Support: 1.0893, 1.0833
XAU/USD Hits Four-Week High as US Dollar Weakens Amid Fed Speculation
The US Dollar’s decline continued on Wednesday, driving XAU/USD to a four-week high of $1,949.02 per troy ounce, prompted by weak macroeconomic data fueling speculation of an impending end to the Federal Reserve’s tightening cycle. The USD’s descent was exacerbated by discouraging figures, including a decrease in private job creation in August and a downward revision of Q2 Gross Domestic Product to 2.1% QoQ. While stock markets gained modestly and government bond yields retreated, expectations for the Fed to remain on hold in September rose to 88.5%. However, discussions of the Fed pressuring regional banks to bolster liquidity strategies led to Wall Street pulling back from recent highs. Attention now shifts to US inflation data, with the July Core Personal Consumption Expenditures (PCE) Price Index expected to show a 5.3% YoY increase in August, potentially impacting rate hike expectations.
Based on technical analysis, the XAU/USD moves higher on Wednesday and creating a push to the upper band of the Bollinger Bands. Currently, the price is moving below the upper band higher showing there’s potential for Gold to move even higher. The Relative Strength Index (RSI) is at 70 currently, showing that the XAU/USD pair is still in a positive mode but might have some correction lower.
Resistance: $1,954, $1,965
Support: $1,936, $1,926
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
