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Daily Technical Insights 16th 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 Retracement Amidst Fed Sentiment: Analyzing Dollar Dynamics

The EUR/USD pair experienced a corrective dip from its recent highs near 1.0900 to around 1.0830. Nevertheless, the prevailing bias suggests an upward trajectory, driven by declining confidence in the US Dollar. The Federal Reserve’s apparent conclusion on interest rate hikes following subdued inflation data triggered a Dollar retreat. However, the USD showcased resilience post-data release, backed by a rebound in US yields. While the negative Dollar sentiment prevails, the USD’s strength is evident against a backdrop of comparatively robust US economic performance. This correction in EUR/USD is viewed as a temporary adjustment in light of ongoing market expectations regarding the Fed’s stance on rates. The coming US economic data could further impact the pair’s movement.

Chart EURUSD by TradingView

Technical analysis shows a slight downward movement in the EUR/USD on Wednesday as it eased from the upper band of the Bollinger Bands. Presently, the pair is trading between the middle and upper bands, hinting at a potential slight decline towards the middle band. Additionally, the Relative Strength Index (RSI) stands at 71, indicating a sustained bullish bias.

Resistance: 1.0890, 1.0935

Support: 1.0835, 1.0772

XAU/USD (4 Hours)

XAU/USD Edges Lower Amid Dollar Rebound: Short-Term Upside Bias Persists

Spot Gold, represented by XAU/USD, encountered a retreat after hitting a weekly peak at $1,975, struggling to maintain ground above $1,970. This pullback was influenced by a US Dollar correction and a resurgence in US yields. Despite this, the immediate trajectory for Gold seems inclined toward further upward movement. Recent economic data, including the Producer Price Index (PPI), decline and softer Retail Sales, suggests a cooling of inflationary pressures, reinforcing the Dollar’s dip on Tuesday. Factors such as ongoing risk appetite, sturdy US bonds, and the Dollar’s vulnerability may continue to bolster Gold’s prospects. However, upcoming US releases like the Jobless Claims report and Industrial Production could potentially sway market sentiments, impacting Gold’s trajectory amid changing yield dynamics.

Chart XAUUSD by TradingView

Technical analysis indicates that XAU/USD remained stable on Wednesday, aiming for the middle band of the Bollinger Bands. Currently, the gold price hovers slightly above this band, hinting at a potential minor decline towards this level. The Relative Strength Index (RSI) is currently at 52, indicating that the XAU/USD pair is still exhibiting a neutral bias.

Resistance: $1,970, $1,992

Support: $1,955, $1,933

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