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Daily Technical Insights 16th January 2024


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 Faces Uncertainty Amidst Geopolitical Tensions and ECB Debate on Interest Rates

The EUR/USD started the trading week with indecision, marked by reduced volatility and thin trade conditions due to the US markets’ inactivity post-Martin Luther King Jr. holiday. The pair rebounded from daily lows near 1.0930, supported by a positive session for the greenback amid a risk-off sentiment tied to geopolitical developments, especially in the Middle East. The European currency found some backing from hawkish comments by ECB officials, countering premature speculation about potential interest rate cuts. A debate between market participants and ECB rate-setters on the timing of rate reduction ensues, with the central bank leaning towards a restrictive stance due to persistent inflation. Meanwhile, data from Europe reveals mixed economic indicators, contributing to the uncertainty in EUR/USD movements.

Chart EUR/USD by TradingView

On Monday, the EUR/USD moved lower, able to reach the lower band of the Bollinger Bands. Currently, the price moving just around the lower band, suggesting another potential downward movement. Notably, the Relative Strength Index (RSI) maintains its position at 39, signaling a bearish outlook for this currency pair.

Resistance: 1.0954, 1.1000

Support: 1.0912, 1.0876

XAU/USD (4 Hours)

XAU/USD Holds Steady Near $2,058.55 Amid Quiet US Markets on Martin Luther King Day

Gold (XAU/USD) maintains its upward momentum, hovering above $2,050 per troy ounce in the absence of U.S. market activity due to the Martin Luther King Day Holiday. The week began optimistically, with Asian shares reflecting positive sentiment; however, European trading hours saw a decline in optimism as tepid local data weighed on EU indexes. The US Dollar exhibited mixed performance, particularly gaining strength against commodity-linked currencies. Looking ahead, the focus shifts to inflation updates from Canada, the United Kingdom, Germany, and the Eurozone, while the World Economic Forum in Davos will attract attention with speeches from major central bankers and authorities. The U.S. macroeconomic calendar remains relatively quiet this week, with December Retail Sales and the preliminary estimate of the January Michigan Consumer Sentiment Index slated for release later.

Chart XAU/USD by TradingView

On Monday, XAU/USD moved flat and stayed between the middle and upper bands of the Bollinger Bands. Currently, the price moving between the middle and upper bands. The Relative Strength Index (RSI) stands at 56, signaling a neutral outlook for this pair.

Resistance: $2,070, $2,089

Support: $2,042, $2,023

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