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 Continues Downward Trend Amidst ECB’s Caution and Fed’s Policy Signals
The EUR/USD sustained its decline below the 20-day SMA, influenced by a resurgent US Dollar and cautious remarks from ECB’s Isabel Schnabel regarding inflation. Speculation of a potential rate cut by the ECB heightened as Eurozone indicators revealed a decline in the Producer Price Index and stable one-year inflation expectations at 4.0%. Meanwhile, in the US, despite mixed data, a stronger Dollar persisted, driven by a perceived completion of the Fed’s tightening cycle amid slowing inflation and a more balanced labor market. Market focus now shifts to upcoming Eurozone retail sales data and the ADP Employment Report in the US as key indicators impacting the EUR/USD trend.
On Tuesday, the EUR/USD experienced a downward movement, creating a push to the lower band of the Bollinger Bands. Currently, the price moving slightly above the lower band, suggesting a potential upward movement, potentially reaching the middle band before goes back lower. Notably, the Relative Strength Index (RSI) maintains its position at 27, signaling a bearish outlook for this currency pair.
Resistance: 1.0825, 1.0920
Support: 1.0760, 1.0664
XAU/USD Struggles as Dollar Gains Momentum Amid Mixed US Reports
Gold (XAU/USD) encountered a brief upswing in the Asian session before resuming its downward trajectory, signaling persistent bearish pressure. Despite varied US economic indicators and a drop in Treasury yields, the precious metal declined. The US reported a decrease in job openings alongside an ISM Services PMI surpassing expectations, fostering a balanced labor market impression. Despite this, the Greenback regained strength as Treasury yields fell, hitting multi-day highs. This Dollar momentum, coupled with declining yields, sustains a short-term bullish trend, painting a negative outlook for Gold amidst anticipation of key upcoming US data releases.
On Tuesday, XAU/USD moved lower trying to reach the lower band of the Bollinger Bands. The current movement suggests a potential upward trend, possibly returning to the middle band. The Relative Strength Index (RSI) stands below 41, indicating a bearish yet neutral sentiment for this pair.
Resistance: $2,031, $2,049
Support: $2,006, $1,992
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
