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Daily Technical Insights 8th December 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 Surges Amidst Dollar Weakness Ahead of Crucial US Employment Data

The EUR/USD witnessed a climb past 1.0800 from weekly lows near 1.0750 as the US Dollar weakened, driven by declining US yields. However, Germany’s unexpected drop in Industrial Production hints at a negative regional economic outlook. With the Eurozone’s forthcoming CPI likely to hold steady at 3.2%, attention shifts to the US employment data due Friday. Despite initial concerns about ECB and Fed policy divergence, the Dollar lost steam amidst improved risk sentiment. As the market anticipates a softer US labor market, expectations of a payroll increase to 180,000 in the forthcoming report linger, following a previous 150,000 figure.

Chart EUR/USD by TradingView

On Thursday, the EUR/USD moved slightly higher and was able to reach the middle band of the Bollinger Bands. Currently, the price moving slightly below the middle band, suggesting a potential lower movement, potentially reaching the lower band. Notably, the Relative Strength Index (RSI) maintains its position at 40, signaling a bearish outlook for this currency pair.

Resistance: 1.0825, 1.0920

Support: 1.0760, 1.0664

XAU/USD (4 Hours)

XAU/USD Sees Sideways Movement Amidst Resistance and Economic Indicators

The Gold spot market is currently experiencing a sideways trend without a definitive short-term direction, grappling with resistance at $2,040 while constrained by lower Treasury yields. Despite retracing from its all-time highs near $2,130, Gold’s negative momentum shows resilience. The recent drop in XAUD/USD inflicted damage but has stabilized, hinting at a potential consolidation phase. Amidst expectations of the Federal Reserve maintaining interest rates and potential rate cuts in 2024 following other central banks, Gold’s resurgence depends on a modest weakening of the US Dollar and continued subdued yields. With key economic data like the Nonfarm Payroll and the Consumer Price Index on the horizon, market focus remains pivotal on potential catalysts for Gold’s upward movement toward record highs.

Chart XAU/USD by TradingView

On Thursday, XAU/USD moved in consolidation waits for Friday’s US jobs report and created a narrow band of the Bollinger Bands. The current movement suggests that the market is still in wait-and-see mode for the non-farm data before goes in any direction. The Relative Strength Index (RSI) stands at 50, indicating a neutral sentiment for this pair.

Resistance: $2,041, $2,051

Support: $2,024, $2,016

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