Daily Technical Insights 21st 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 Teeters Amid US Dollar Recovery: Key Data Points Influence Direction

The EUR/USD faced a dip amidst a recovering US Dollar Index, struggling to break the 1.1000 mark as it moved directionlessly. Supported by a weak US Dollar and a hint of risk appetite, the pair showed resilience. Positive US data, including a rise in Existing Home Sales and Consumer Confidence, countered the Eurozone’s moderate uptick in Consumer Confidence and the ECB’s resistance to early rate cuts. While the bias leans towards an upward trajectory, the EUR/USD needs to breach 1.1000 swiftly to mitigate focus on the diverging economic performances of the US and Eurozone. Thursday’s upcoming data, including Jobless Claims and Q3 GDP, followed by Friday’s Core PCE report, will likely steer the pair’s direction.

Chart EUR/USD by TradingView

On Wednesday, the EUR/USD moved slightly lower reaching the middle band of the Bollinger Bands. Currently, the price moving slightly above the upper band, suggesting a potential for another upward movement. Notably, the Relative Strength Index (RSI) maintains its position at 55, signaling a neutral outlook for this currency pair.

Resistance: 1.1017, 1.1138

Support: 1.0946, 1.0830

XAU/USD (4 Hours)

XAU/USD Holds Steady Amidst USD Strength and Inflation Concerns

Spot Gold, represented by XAU/USD, navigated within a tight range as the US Dollar gained momentum earlier in the day, buoyed by upbeat US data like the CB Consumer Confidence report. Despite hitting an intraday high before retracing, Gold settled near its daily low. Market sentiment shifted during the European session on news of easing UK inflation, alleviating some concerns. Eyes now turn to the upcoming US Personal Consumption Expenditures Price Index, anticipated to influence markets significantly and potentially affirm or challenge the Fed’s recent policy stance.

Chart XAU/USD by TradingView

On Wednesday, XAU/USD moved slightly lower and reached the middle band of the Bollinger Bands. Currently, the price moving just above the upper band, suggesting a potential upward movement. The Relative Strength Index (RSI) stands at 56, signaling a neutral outlook for this pair.

Resistance: $2,050, $2,068

Support: $2,031, $2,008

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