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 Gains Momentum Despite Obstacles and Weak Dollar
The EUR/USD saw an upward trend on Thursday, aiming for its highest daily close in over a week, fueled by a weaker US dollar amidst market risk aversion. Nevertheless, it struggled to hold above the 1.0600 mark, signaling potential challenges ahead. Key events to watch include Germany’s upcoming Producer Price Index report and the European Central Bank meeting, with expectations of unchanged key rates. In the US, mixed economic data, Federal Reserve Chair Jerome Powell’s stance on rate stability, and concerns about inflation have contributed to the USD’s weakness, maintaining intrigue in the EUR/USD pairing.
Based on technical analysis, the EUR/USD was slightly lower on Thursday, pushing towards the upper band of the Bollinger Bands. Currently, the EUR/USD is trading just above the middle band, suggesting the potential for another lower movement. The Relative Strength Index (RSI) stands at 55, indicating that the EUR/USD is still in neutral bias.
Resistance: 1.0616, 1.0672
Support: 1.0561, 1.0502
XAU/USD Surge to Three-Month High as US Dollar Weakens Amid Middle East Tensions and Fed Chairman’s Speech
Gold prices remain on a bullish trajectory, with XAU/USD surpassing $1,970 per troy ounce, its highest level in three months. Initially, the US Dollar found support due to risk-averse sentiment driven by tensions in the Middle East and anticipation of Jerome Powell’s speech at the Economic Club of New York. However, the Greenback later weakened despite global equities’ poor performance and rising government bond yields, as investors interpreted Powell’s words to mean the Federal Reserve would avoid further rate hikes. Speculative interest turned against the USD during Powell’s speech, allowing XAU/USD to maintain its gains. Notably, the 2-year Treasury note yield dropped to 5.16% after reaching a multi-year peak of 5.25%.
Based on technical analysis, XAU/USD is moving higher on Thursday and 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 continuation movement. The Relative Strength Index (RSI) currently registers at 79, indicating a bullish bias for the XAU/USD pair.
Resistance: $1,985, $2,002
Support: $1,973, $1,947
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
