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 Slips Below Key Moving Average as US Dollar Strengthens Amid Geopolitical Concerns and Soaring Treasury Yields
EUR/USD dropped below the 20-day Simple Moving Average (SMA) as it faced resistance at 1.0600, primarily due to the US Dollar’s overall strength driven by deteriorating market sentiment and rising Treasury yields. The initial boost in market sentiment from positive Chinese growth data was short-lived, with geopolitical concerns taking center stage and further supporting the US Dollar. The 10-year Treasury yield reached its highest level since 2007 at 4.92%, adding to the Greenback’s momentum. The upcoming economic data releases and a speech by Federal Reserve Chair Powell, underscore the continuing bearish trend for the EUR/USD pair due to favorable fundamentals for the US Dollar.
Based on technical analysis, the EUR/USD was slightly lower on Wednesday, pushing towards the middle band of the Bollinger Bands. Currently, the EUR/USD is trading just below the middle band, suggesting the potential for another lower movement. The Relative Strength Index (RSI) stands at 44, indicating that the EUR/USD is still in neutral bias.
Resistance: 1.0573, 1.0616
Support: 1.0502, 1.0460
XAU/USD Surges to Two-Month High Amid Escalating Middle East Tensions
Gold (XAU/USD) made a strong resurgence, hitting a fresh two-month high at $1,962.62 per troy ounce as Middle East tensions escalated. Despite some mid-American session retracement to around $1,949, XAU/USD maintained its gains, partly due to the U.S. Dollar’s uptick following a decline in stock markets. Meanwhile, President Joe Biden’s brief visit to Israel further heightened the geopolitical situation in the region. Mixed macroeconomic data, including robust Chinese growth and higher-than-expected UK inflation, added to market uncertainty, leading to a 0.52% decline in the Dow Jones Industrial Average amid a challenging day for earnings reports.
Based on technical analysis, XAU/USD is moving slightly higher on Wednesday and is able to reach the upper band of the Bollinger Bands. Currently, the price of gold is moving just below the upper band, suggesting a possible correction to reach the middle band. The Relative Strength Index (RSI) currently registers at 69, indicating a bullish bias for the XAU/USD pair.
Resistance: $1,952, $1,962
Support: $1,939, $1,928
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
