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 Bears Gain Momentum as Powell’s Remarks Boost US Dollar
The EUR/USD took a sharp downward turn in response to Federal Reserve Chair Jerome Powell’s remarks, establishing a clear bearish trend. While European Central Bank (ECB) officials initially supported the Euro, the market anticipates unchanged rates, with the focus shifting to when the first-rate cut might occur. The US dollar’s strength is bolstered by a strong US economy, as emphasized by Powell, who expressed concerns about inflation and triggered a dollar rally and soaring US bond yields. This shift in sentiment, combined with ongoing market analysis, continues to shape the EUR/USD landscape.
According to technical analysis, the EUR/USD moved slightly lower on Thursday, reaching the lower band of the Bollinger Bands. Currently, the EUR/USD is trading around the lower band, indicating the potential for a consolidating move to try to reach the middle band. The Relative Strength Index (RSI) is at 46, signaling that the EUR/USD is back in neutral bias.
Resistance: 1.0695, 1.0725
Support: 1.0645, 1.0615
XAU/USD Rebounds Amidst Cautious Optimism and Fed Officials’ Insights
In the first half of the day, the US Dollar appeared strong, but it changed direction after the American opening, prompting XAU/USD to bounce back from a weekly low of $1,944.71 and trade above $1,960. Financial markets remain cautiously optimistic, anticipating a pause in monetary tightening by central banks. Richmond Federal Reserve Bank President Thomas Barkin’s positive remarks about the economy and inflation progress added to the market sentiment, while Atlanta Fed President Raphael Bostic emphasized the uncertainty of recent policies’ effects. Market participants await US Fed Chairman Jerome Powell’s potential comments on monetary policy during an IMF panel discussion titled “Monetary Challenges in a Global Economy.”
According to technical analysis, XAU/USD moves slightly higher on Thursday and is able to reach the middle band of the Bollinger Bands. Presently, the price of gold is moving just below the middle band, creating a possibility to push lower. The Relative Strength Index (RSI) is currently at 41, indicating a bearish bias for the XAU/USD pair.
Resistance: $1,962, $1,992
Support: $1,945, $1,920
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
