• CL-OIL


  • Cocoa-C


  • View more

Daily Technical Insights 26th 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 Slides Below 1.0600 as Strong US Dollar Dominates, Eyes on ECB and US Economic Data

The EUR/USD currency pair faced a second consecutive day of declines, dropping below the 1.0600 mark, driven by the strength of the US Dollar. Market attention now shifts to the European Central Bank’s (ECB) upcoming meeting and significant US economic data releases. Notably, the German IFO Business Survey displayed positive results, while the ECB is expected to maintain unchanged interest rates amid concerns about slowing inflation and subdued economic activity. Additionally, robust US economic data could further bolster the US Dollar, while any negative surprises may trigger a correction in the currency pair.

Chart EURUSD by TradingView

According to technical analysis, the EUR/USD moved lower on Wednesday, approaching the middle band of the Bollinger Bands. Currently, the EUR/USD is trading between the middle and lower bands, indicating the potential for further downward movement. The Relative Strength Index (RSI) is at 39, signaling that the EUR/USD is adopting a bearish bias.

Resistance: 1.0616, 1.0705

Support: 1.0500, 1.0405

XAU/USD (4 Hours)

XAU/USD Climbs to $1,982 as Markets Weigh Economic Outlook Amidst Earnings Season and Central Bank Decisions

In Wednesday’s trading, XAU/USD made gains, reaching approximately $1,982 per troy ounce. As financial markets closely observe Wall Street’s earnings reports, the focus is on the economic outlook leading up to pivotal events on Thursday. Anticipations of robust U.S. economic growth, potentially at an annualized rate of 4.2% for the third quarter, are raising questions about interest rates and the Federal Reserve’s stance. Simultaneously, the European Central Bank (ECB) is expected to maintain rates and adopt a cautious approach to future monetary policy. Earnings season is further impacting sentiment, with mixed results from major tech companies affecting stock indices, and rising government bond yields adding to market dynamics.

Chart XAUUSD by TradingView

According to technical analysis, XAU/USD is consolidating on Wednesday and has the potential to reach the upper band of the Bollinger Bands, which is currently squeezing. Presently, the price of gold is consolidating near the upper band, implying a possible downward consolidation. The Relative Strength Index (RSI) is currently at 60, indicating a neutral bias for the XAU/USD pair.

Resistance: $1,985, $2,002

Support: $1,970, $1,959

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