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Daily Technical Insights 31st 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 Climbs Above 1.0600 as Dollar Weakens Ahead of FOMC Meeting and Key Data

The EUR/USD pair surged above 1.0600 during the American session, driven by a weakened US Dollar in anticipation of the upcoming FOMC meeting and crucial jobs data. The Euro received additional support from positive Eurozone economic data. Notably, Germany’s economic contraction in the third quarter was less severe than anticipated, and inflation rates in October eased below expectations. These factors support the expectation that the European Central Bank (ECB) will maintain its current stance. While the Federal Reserve (Fed) is set to keep rates unchanged, strong economic performance in the US allows for potential rate hikes in the future. Key US data releases throughout the week will influence the US Dollar’s momentum.

Chart EURUSD by TradingView

According to technical analysis, the EUR/USD moved higher on Monday, approaching the upper band of the Bollinger Bands. Currently, the EUR/USD is trading around the upper band, indicating the potential for a slightly lower movement. The Relative Strength Index (RSI) is at 58, signaling that the EUR/USD is in neutral bias.

Resistance: 1.0616, 1.0705

Support: 1.0500, 1.0405

XAU/USD (4 Hours)

XAU/USD Dips Below $2,000 Amidst Global Uncertainty and Central Bank Speculation

Gold (XAU/USD) is struggling to maintain the $2,000 mark after reaching a high of $2,009.34 last Friday, the highest level since mid-May. The demand for safe-haven assets has waned at the start of the week, impacting both Gold and the US Dollar. Global attention is focused on Middle East developments, including Israel’s ground offensive in the Gaza Strip, and anticipation is building for key central bank decisions, with the Federal Reserve, Bank of Japan, and Bank of England set to announce their monetary policies this week. Additionally, the US employment situation and upcoming economic reports are expected to influence Gold’s performance, while stock markets remain positive and Treasury yields rise, albeit not providing strong support for the US Dollar.

Chart XAUUSD by TradingView

According to technical analysis, XAU/USD is consolidating on Monday and has the potential to reach the middle band of the Bollinger Bands, which is currently squeezing. Presently, the price of gold is consolidating near the middle band, implying a possible downward consolidation. The Relative Strength Index (RSI) is currently at 58, indicating a neutral bias for the XAU/USD pair.

Resistance: $2,007, $2,020

Support: $1,993, $1,977

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