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Daily Technical Insights 30th 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 Faces Volatility Amid Diverging Economic Signals

The EUR/USD surged to a three-month high at 1.1016 but retreated below 1.1000 despite burgeoning risk appetite. Europe witnessed a slowdown in inflation, notably in Germany and Spain, raising concerns about potential ECB rate cuts. Yet, this might not prompt immediate dovish action, as analysts anticipate a rebound in inflation over the next months. Meanwhile, the US economy revealed robust growth of 5.2% in Q3, lifting the US Dollar on confidence in its performance. However, recent indications of a slowdown before November 18 from the Beige Book compounded with upcoming critical US data—Core PCE Price Index and Jobless Claims—could exert further pressure on the Greenback if they reflect softening inflation and labor market conditions. Bond yields fell on both sides, especially in Germany, adding to the volatility gripping the EUR/USD pair.

Chart EUR/USD by TradingView

On Wednesday, the EUR/USD experienced a downward movement, settling around the middle range of the Bollinger Bands. Presently, the price exhibits a marginal increase above this midpoint, suggesting a potential upward trajectory, potentially reaching the upper band. Notably, the Relative Strength Index (RSI) maintains its position at 55, signaling a neutral outlook for this currency pair.

Resistance: 1.1041, 1.1087

Support: 1.0968, 1.0930

XAU/USD (4 Hours)

XAU/USD Dips Amid Dollar’s Recovery and Fed’s Inflation Sentiments

Spot Gold slid to $2,040 an ounce, pulled down by a resurgent US Dollar amidst profit-taking before pivotal data releases. Despite the Dollar’s bounce, its weakness persists on hopeful sentiments that the Federal Reserve might halt tightening measures. Conflicting views within the Fed add to the uncertainty: while Atlanta Fed President Bostic signals confidence in declining inflation, Richmond Fed President Barkin remains cautious, keeping the possibility of rate hikes alive. With US bond yields retreating to multi-week lows and market focus shifting to the upcoming inflation data, Gold’s trajectory hinges on signs of easing price pressures, poised to either bolster optimism or dampen USD demand.

Chart XAU/USD by TradingView

On Wednesday, XAU/USD underwent a period of consolidation, presently oscillating between the middle and upper bands within the Bollinger Bands. This current movement suggests a potential upward trend, potentially reaching the upper band once again. The Relative Strength Index (RSI) stands at a level below 69, indicating that the bullish sentiment for this pair remains robust.

Resistance: $2,052, $2,079

Support: $2,038, $2,012

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