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 Rebounds from Lows as Dollar Loses Momentum Amid Volatile Treasury Yields
In Tuesday’s trading, the EUR/USD initially dipped but later recovered, reaching the 1.0700 area. This correction was primarily driven by a stronger US Dollar, which lost its upward momentum due to increasing risk appetite and a reversal in Treasury yields. A negative report from Germany, showing a 1.4% contraction in Industrial Production in September, contributed to the Euro’s earlier decline. However, Eurostat’s Producer Price Index remained in line with expectations. The US Federal Reserve’s focus on data-guided decisions and an upcoming speech by Chair Jerome Powell will influence the Dollar’s trajectory. The volatile Treasury market played a significant role in shaping the Greenback’s movements, ultimately favoring the EUR/USD’s rebound and maintaining bullish sentiment.
According to technical analysis, the EUR/USD moved slightly lower on Tuesday, reaching the middle band of the Bollinger Bands. Currently, the EUR/USD is trading around the middle band, indicating the potential for a consolidating move around the middle band. The Relative Strength Index (RSI) is at 55, signaling that the EUR/USD is back in neutral bias.
Resistance: 1.0711, 1.0765
Support: 1.0675, 1.0615
US Dollar Surge Temporarily Pressures Gold (XAU/USD) as Fed Hints at Further Rate Hikes
Gold (XAU/USD) faced downward pressure, falling to $1,956.65 per troy ounce, as the US Dollar gained strength due to cautious market sentiment, spurred by Federal Reserve (Fed) officials suggesting the possibility of additional rate hikes to address inflation concerns. However, the Greenback’s gains were trimmed later in the day as US stock markets rebounded, while US Treasury yields remained relatively subdued.
According to technical analysis, XAU/USD moves lower on Tuesday and is able to reach the lower band of the Bollinger Bands. Presently, the price of gold is moving near the lower band, creating a possibility to push lower. The Relative Strength Index (RSI) is currently at 38, indicating a slight bearish bias for the XAU/USD pair.
Resistance: $1,992, $2,007
Support: $1,962, $1,945
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