Spreads
Spreads
Spreads
Spreads
Spreads
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EUR/USD (4 Hours)
EUR/USD Falls as FOMC Meeting Spurs Stronger US Dollar, Fed Signals Hawkish Stance
The EUR/USD experienced a significant decline, dropping from its weekly highs above 1.0730 to 1.0650 in response to the FOMC meeting’s outcome. The Federal Reserve unanimously maintained its interest rate target range at 5.25-5.50%, with minimal changes in the statement compared to the previous month. The Summary of Economic Projections suggests the likelihood of another rate hike by year-end, although Fed Chair Powell emphasized that the dot plot is not a firm plan. The market perceived the meeting as hawkish, causing US bond yields to surge to multi-year highs and Wall Street to turn bearish, subsequently strengthening the US Dollar. Upcoming US data releases and decisions from central banks like the Swiss National Bank and the Bank of England will remain pivotal for market dynamics.
According to technical analysis, the EUR/USD moved in high volatility on Thursday and was able to reach the middle band but then moved back lower and reached the lower band of the Bollinger Bands. This movement suggests the possibility of further consolidation. The Relative Strength Index (RSI) is currently at 37, indicating that the EUR/USD is in a neutral stance with a slight bearish bias.
Resistance: 1.0687, 1.0759
Support: 1.0605, 1.0523
XAU/USD Drop Amid Fed’s Hawkish Stance on Rates
Gold prices fell for the third consecutive day, trading around $1,925 during Asia’s early trading hours on Thursday. The US Federal Reserve (The Fed) kept its benchmark interest rate at 5.5%, but projected more rate hikes in 2023, leading to pressure on precious metals. The Fed’s revision of 2024 interest rate projections, from 4.6% to 5.1%, unexpectedly boosted the US Dollar, causing the US Dollar Index (DXY) to reach a six-month high at 105.60. US bond yields also rose, with the 10-year bond hitting 4.43%, its highest since 2007. Precious metals slipped after Fed Chair Jerome Powell’s press conference, where he reiterated The Fed’s commitment to a 2% inflation target and emphasized data-driven future decisions. More US data, including Weekly Jobless Claims, the Philadelphia Fed Manufacturing Survey, and Existing Home Sales Changes, will impact markets on Thursday.
According to technical analysis, XAU/USD moved in high volatility on Thursday and was able to reach the lower band and then move back higher. Currently, the price is trading between the middle and lower bands. The Relative Strength Index (RSI) is currently at 51, indicating that the XAU/USD pair is back in a neutral stance.
Resistance: $1,939, $1,951
Support: $1,922, $1,915
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