Daily Technical Insights 28th 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 Above 1.1100 Amid Dollar’s Decline

The EUR/USD rallied past the 1.1100 mark propelled by a weakening US Dollar, sinking below 101.00 in the DXY index for the first time in five months. With US Treasury yields hitting new lows amidst expectations of Federal Reserve rate cuts in the upcoming year, the Dollar faced downward pressure while equity markets remained buoyant. Despite quiet trading, anticipation grows for crucial reports like the US weekly Jobless Claims and Spain’s preliminary inflation figures. As 2023 concludes, the serene market conditions continue to weigh on the Dollar, setting the stage for a pivotal turn with the impending release of US employment data next week.

Chart EUR/USD by TradingView

On Wednesday, the EUR/USD moved higher and reached the upper band of the Bollinger Bands. Currently, the price moving slightly below the upper band, suggesting a potential upward movement. Notably, the Relative Strength Index (RSI) maintains its position at 75, signaling a bullish outlook for this currency pair.

Resistance: 1.1138, 1.1222

Support: 1.1043, 1.0946

XAU/USD (4 Hours)

XAU/USD Navigates Volatility Amidst Cautious Dollar and Fed Watch

Gold (XAU/USD) is experiencing a pause as the US Dollar (USD) stabilizes amidst market caution, despite sluggish US Treasury bond yields. Investors, returning from the Christmas holiday, are refraining from substantial trades, closely monitoring macroeconomic developments. Uncertainty looms as Fed interest rate cut expectations for 2024 remain ambiguous, leaving Gold buyers in suspense. The dovish sentiment surrounding the Fed’s policy shift strengthened following lackluster data on the Core PCE Price Index, propelling the US Dollar Index to a five-month low. With thin liquidity and cautious trading ahead due to the holiday week, Gold’s trajectory remains vulnerable to intense fluctuations amidst this landscape.

Chart XAU/USD by TradingView

On Wednesday, XAU/USD moved higher and reached the upper band of the Bollinger Bands. Currently, the price moving at the upper band, suggesting a potential upward movement. The Relative Strength Index (RSI) stands at 72, signaling a bullish outlook for this pair.

Resistance: $2,088, $2,103

Support: $2,070, $2,048

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