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Daily Technical Insights 17th 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 Edges Higher Amid Middle East Tensions and Economic Uncertainty

The EUR/USD pair saw a slight uptick, reaching 1.0554 on Monday as it closed trading below this peak. A stronger US Dollar at the start of the week, driven by ongoing Middle East tensions, initially led to a demand for safety. However, as the day progressed, the USD weakened against major currencies. The escalating conflict in the Middle East, marked by attacks from Hezbollah in addition to the ongoing Israel-Palestine conflict, created global economic uncertainty and added pressure on central banks. Data releases were limited, with Germany’s Wholesale Price Index edging up, the Euro Zone showing an improved trade balance, and the US reporting a decline in the NY Empire State Manufacturing Index. Upcoming releases include Germany’s ZEW Survey on Economic Sentiment and US Retail Sales for September, Industrial Production, Capacity Utilization, and Business Inventories for August.

Chart EURUSD by TradingView

Based on technical analysis, the EUR/USD was slightly higher on Monday, pushing towards the middle band of the Bollinger Bands. Currently, the EUR/USD is trading at the middle band, suggesting the potential for a consolidating move. The Relative Strength Index (RSI) stands at 48, indicating that the EUR/USD is back to neutral bias.

Resistance: 1.0560, 1.0616

Support: 1.0502, 1.0451

XAU/USD (4 Hours)

XAU/USD Faces Volatility Amid Geopolitical Tensions and Fragile Market Sentiment

Spot Gold, represented as XAU/USD, started the week with a gap lower, retreating from a recent multi-week high. Geopolitical concerns in the Middle East, particularly the escalating conflict between Israel and Hamas, kept financial markets on edge. However, the demand for the US Dollar decreased during European trading hours, allowing XAU/USD to recover around the $1,920 price range. While US stock markets posted gains, the market sentiment remains delicate due to uncertainty in the economic outlook and future monetary policies. Major central banks have paused tightening, but the potential for additional rate hikes lingers, given persistent inflationary pressures. This week’s inflation reports from New Zealand, Canada, and the UK will play a crucial role in determining the precious metal’s performance in the face of mounting price pressures.

Chart XAUUSD by TradingView

Based on technical analysis, XAU/USD is moving slightly lower on Monday and consolidating between the upper and middle bands of the Bollinger Bands. Currently, the price of gold is still moving near the support level with the potential of moving lower. The Relative Strength Index (RSI) currently registers at 66, indicating a bullish bias for the XAU/USD pair.

Resistance: $1,929, $1,946

Support: $1,913, $1,901

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