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Daily Technical Insights 23rd 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 Corrects Amidst US Dollar Strength: Market Anticipation on Eurozone Rates and US Data

The EUR/USD retreated to 1.0850 as the US Dollar surged post-release of robust US economic data, marking a correction from recent highs. Bundesbank President Joachim Nagel’s remarks on Eurozone interest rates nearing their peak spurred speculation, hinting at limited rate hikes without an inflation rebound. Thursday’s focus lies on preliminary November PMI data, expected to show slight improvements below the pivotal 50 mark, potentially amplifying pressure on EUR/USD if outcomes disappoint. Concurrently, the US Dollar strengthened on mixed data, including a larger-than-expected drop in Jobless Claims and a sizable contraction in Durable Goods Orders. With US markets closed Thursday, attention shifts to the ECB’s monetary policy meeting minutes, while Treasury yields bolster the Dollar’s corrective momentum amid anticipations for market consolidation.

Chart EURUSD by TradingView

On Wednesday, the EUR/USD demonstrated a robust downward trend, hitting the lower band of the Bollinger Bands. Presently, it trades marginally above this point, suggesting a potential upward shift aiming for the middle band. With the Relative Strength Index (RSI) resting at 50, it reflects a neutral position for the currency pair.

Resistance: 1.0956, 1.1004

Support: 1.0885, 1.0832

XAU/USD (4 Hours)

XAU/USD Retreats Amid US Dollar Rebound and Economic Data Surge

In response to a surge earlier in the week, Spot Gold (XAU/USD) experienced a pullback as it approached the critical resistance level of $2,010. The decline continued through the American session, signaling potential further downside, albeit at a gradual pace. Despite this retreat, the yellow metal retains an underlying bullish outlook. Concurrently, the US Dollar Index (DXY) rebounded from monthly lows, spurred by robust US economic data, reaching 104.20 before retracing slightly below 104.00. The climb was supported by an uptick in US Yields following a bounce from 4.37% to 4.40%. Notably, recent US data showcased a drop in Initial and Continuing Claims alongside a larger-than-expected contraction in October Durable Goods Orders. With the US market set to be closed on Thursday, a decline in trading volume is anticipated in the upcoming sessions.

Chart XAUUSD by TradingView

On Wednesday, XAU/USD experienced a downward movement, reaching the middle band of the Bollinger Bands. Presently, the gold price hovers slightly above this level, indicating a potential minor uptick aiming for the upper band. The Relative Strength Index (RSI) sits at 55, indicating a period of consolidation for the XAU/USD pair.

Resistance: $1,996, $2,008

Support: $1,988, $1,973

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