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 Struggles Below Key Levels Amid Fed and ECB Decision Expectations
The EUR/USD made a modest ascent, yet failed to sustain levels above 1.0800, lingering below the 200-day SMA. The US Dollar’s mixed sentiment post-US inflation figures and in anticipation of the Federal Reserve’s upcoming decision fuel cautious movements. Despite the CPI aligning with expectations and the USD initially weakening, the currency regained ground. Eyes are on the Fed’s probable unchanged rates and Chair Jerome Powell’s tone. The market eyes the dot plot for 2024 projections, influencing interest rate expectations. With the ECB decision looming and expectations of a non-event, EUR/USD struggles persist amid over 50% odds of a rate cut by March, impeding potential rebounds.
On Tuesday, the EUR/USD moved slightly higher and able to reach near the upper band of the Bollinger Bands. Currently, the price moving slightly below the upper band, suggesting a potential lower movement, potentially reaching the middle band. Notably, the Relative Strength Index (RSI) maintains its position at 50, signaling a neutral outlook for this currency pair.
Resistance: 1.0817, 1.0885
Support: 1.0747, 1.0664
XAU/USD Stable Amidst Inflation Data and Fed Anticipation
Gold prices, reflected in XAU/USD, held steady at around $1,980.00, showing marginal movement despite the US Dollar’s early softness due to Asian equity gains. Investor caution prevailed ahead of the US Consumer Price Index (CPI) release, which reported in line with expectations – a monthly increase of 0.1% and an annual rate of 3.1%, slightly down from the previous 3.2%. Although the initial response saw XAU/USD touch $1,996.68 post-news, the Greenback recovered swiftly, leading to speculation on the Federal Reserve’s upcoming monetary policy announcement. As investors anticipate the Fed’s stance on rate adjustments, the steady inflation figures have partially tempered expectations of immediate rate cuts, contributing to short-term concerns and favoring the USD.
On Tuesday, XAU/USD moved slightly lower. Currently, the price is moving between the lower and middle bands of the Bollinger Bands which creates a possibility that XAU/USD might move lower and try to reach our support levels. The Relative Strength Index (RSI) stands at 28, indicating bearish sentiment as it’s in the oversold area.
Resistance: $1,995, $2,016
Support: $1,973, $1,956
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
