EUR/USD Retreats as Eurozone Data Misses Expectations, Eyes Turn to FOMC Meeting and US Employment Figures
The EUR/USD pair experienced a shift as it initially reached weekly highs before turning downward, driven by a stronger US Dollar in anticipation of US employment data and the FOMC meeting. Disappointing inflation and growth figures from the Eurozone, along with an impending ECB hold in December, contrasted with mixed US data on Tuesday. The focus now turns to the upcoming FOMC meeting and US employment reports, with the US Dollar’s support stemming from solid fundamentals, while market sentiment helps keep the EUR/USD pair away from recent lows.
According to technical analysis, the EUR/USD moves lower on Tuesday, approaching the middle band of the Bollinger Bands. Currently, the EUR/USD is trading below the middle band, indicating the potential for a slightly lower movement. The Relative Strength Index (RSI) is at 46, signaling that the EUR/USD is in neutral bias.
Resistance: 1.0616, 1.0705
Support: 1.0500, 1.0405
XAU/USD Fluctuates Amidst Mixed Economic Data and USD Demand Ahead of Fed Announcement
In the first half of the day, the XAU/USD saw a surge, reaching $2,007.91 per troy ounce, buoyed by optimism in European financial markets due to softer Euro Zone inflation figures. However, the American session witnessed a downturn as dismal US data spurred demand for the US Dollar. The US Consumer Confidence index dipped slightly in October, and Wall Street’s early gains were erased, contributing to USD strength. The Bank of Japan’s conservative stance on yield-curve control also impacted the currency market. Now, market participants await the US Federal Reserve’s November meeting with uncertainties surrounding the end of the tightening cycle.
According to technical analysis, XAU/USD is moving lower on Monday and able to reach the narrow lower band of the Bollinger Bands. Presently, the price of gold is consolidating near the lower band, creating a possibility to push lower and create a wider band. The Relative Strength Index (RSI) is currently at 42, indicating a neutral bias for the XAU/USD pair.
Resistance: $1,992, $2,007
Support: $1,977, $1,962
|Currency||Data||Time (GMT + 8)||Forecast|
|USD||ADP Non-Farm Employment Change||20:15||149K|
|USD||ISM Manufacturing PMI||22:00||49.0|
|USD||JOLTS Job Openings||22:00||9.34M|