Daily Technical Insights 9th 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 Rebounds Despite US Dollar Strength and ECB’s Dovish Outlook

The EUR/USD staged a rebound during the American session, regaining ground to reach the 1.0700 area, despite a strengthening US Dollar against riskier currencies. The final reading of the German Consumer Price Index (CPI) displayed an annual rate of 3.8%, the lowest since August 2021, indicating a slowing economy and potential recession, leading the European Central Bank (ECB) to halt its tightening cycle, in line with market expectations. Meanwhile, Eurozone Retail Sales declined slightly in September, with August figures revised higher. In the US, Fed Chair Jerome Powell’s panel discussion and comments from Fed officials will be closely monitored, with the market expecting a dovish stance and anticipating confirmation from the upcoming US Consumer Price Index report on monetary policy expectations.

Chart EURUSD by TradingView

According to technical analysis, the EUR/USD moved slightly higher on Wednesday, 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 57, signaling that the EUR/USD is back in neutral bias.

Resistance: 1.0711, 1.0765

Support: 1.0675, 1.0615

XAU/USD (4 Hours)

XAU/USD Faces Persistent Pressure Amidst Uncertain Rate Hike Outlook and Strong US Dollar Demand

Persistent demand for the US Dollar is keeping the XAU/USD pair near a two-week low of $1,950.93 per troy ounce. Central bank officials from the United States and Europe have downplayed the likelihood of imminent rate cuts but left room for potential tightening if inflation trends change. While global equities waver, Wall Street maintains its positive stance, and low Treasury yields raise questions about the feasibility of higher yields tightening financial conditions. Federal Reserve Chair Jerome Powell’s upcoming panel discussion may shed more light on the monetary policy outlook, impacting the gold market.

Chart XAUUSD by TradingView

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 31, indicating a bearish bias for the XAU/USD pair.

Resistance: $1,962, $1,992

Support: $1,945, $1,920

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