Daily Technical Insights 2nd November 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 Faces Uncertain Outlook as ECB Maintains Rates and Eurozone Economic Indicators Signal Recession Risks

The European Central Bank (ECB) opted to keep interest rates steady last week, but expectations of rate cuts in Q2 next year persist due to disinflationary pressures resulting from sluggish GDP growth and concerning PMI data. In addition, recent economic indicators in the Eurozone, such as the preliminary HICP and GDP figures, painted a challenging picture with lower-than-expected readings, raising concerns about the possibility of a recession. Traders are keeping an eye on upcoming data releases and ECB communications, while the US Nonfarm Payrolls report on Friday is poised to influence the direction of the EUR/USD pair, with an estimated 180K job additions in October.

Chart EURUSD by TradingView

According to technical analysis, the EUR/USD moves higher on Wednesday, approaching the middle band of the Bollinger Bands. Currently, the EUR/USD is trading above the middle band, indicating the potential for a slightly higher movement to reach the upper band. The Relative Strength Index (RSI) is at 54, 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 Faces Mixed Signals Amid Weaker Chinese Data and Upcoming US Employment Figures

In the gold market, the weaker Chinese economic data poses a potential challenge, as the world’s largest gold producer and consumer experiences a drop in manufacturing PMI. However, the focus is now shifting to the upcoming US employment data, with initial jobless claims expected to rise and the Nonfarm Payrolls report on Friday projected to add jobs in October. These events hold the key to determining the direction of gold prices in the near term.

Chart XAUUSD by TradingView

According to technical analysis, XAU/USD is moving in consolidation on Wednesday and was able to reach the narrow lower band of the Bollinger Bands. Presently, the price of gold is consolidating near the middle band, creating a possibility to push back lower. The Relative Strength Index (RSI) is currently at 50, indicating a neutral bias for the XAU/USD pair.

Resistance: $1,992, $2,007

Support: $1,977, $1,962

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