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Daily Technical Insights 3rd October 2023

　　

Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.

Picks of the Day Analysis
EUR/USD (4 Hours)

EUR/USD Drops Below 1.0500 Amid Strong US Dollar and Resilient Economic Data

The EUR/USD pair experienced a substantial decline, falling below 1.0500 as the US Dollar maintained its strength due to global risk-off sentiment and rising yields. The US Dollar Index (DXY) edged closer to 107.00, supported by positive economic data and Federal Reserve officials’ comments on the economy’s resilience. Meanwhile, the Eurozone reported a drop in unemployment and a confirmed Manufacturing PMI reading. The coming week’s key events, including the JOLTS and ADP reports, along with the Nonfarm Payrolls data, will likely influence the future direction of the EUR/USD pair, with the US Dollar’s strength hanging in the balance.

Chart EURUSD by TradingView

According to technical analysis, EUR/USD moved lower on Monday, reaching the lower band of the Bollinger Bands. It is currently trading above the lower band, suggesting the potential for further losses. The Relative Strength Index (RSI) is at 29, indicating that EUR/USD is now in bearish bias.

Resistance: 1.0538, 1.0605

Support: 1.0406, 1.0326

XAU/USD (4 Hours)

XAU/USD Hit Multi-Month Low Amid Shifting Economic Tides and Strong US Dollar Demand

Spot Gold recently plunged to a multi-month low of $1,827.11 per troy ounce, primarily driven by resurging US Dollar demand. Encouraging economic data from China and the United States initially boosted sentiment, with China’s Producer Manager Indexes indicating economic resilience and the US Congress extending the debt ceiling to avoid a government shutdown. However, as the day progressed, market sentiment turned sour due to global economic struggles, despite some positive signs such as an improvement in the US ISM Manufacturing PMI. Rising government bond yields, with the 10-year Treasury note hitting its highest since 2007, fueled demand for the US Dollar.

Chart XAUUSD by TradingView

According to technical analysis, XAU/USD moved lower on Monday, creating downward pressure on the lower band of the Bollinger Bands. Currently, the price is consolidating above the lower band, suggesting potential consolidation for today. The Relative Strength Index (RSI) is currently at 13, signifying a bearish bias for the XAU/USD pair.

Resistance: $1,834, $1,858

Support: $1,809, $1,777

Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.

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