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 Navigates Indecision Amidst Diverging Central Bank Sentiments
The new trading week for EUR/USD opened with uncertainty and fluctuating price action tied to the U.S. dollar, accompanied by low volatility on Monday. As market participants anticipate around 120 basis points in rate cuts for the year, a debate ensues between them and the ECB’s rate-setters regarding the timing of the central bank’s decision to reduce the region’s policy rate. Despite inflation surpassing the bank’s target, European policymakers appear inclined to maintain a restrictive stance, hindered by weak fundamentals in the bloc, limiting the upside potential for the European currency. Meanwhile, across the Atlantic, investors are assigning just over a 40% probability to a Federal Reserve rate cut at the March 20 meeting, according to the FedWatch Tool tracked by CME Group.
On Monday, the EUR/USD moved in consolidation, able to reach the middle band of the Bollinger Bands. Currently, the price moving just above the middle band, suggesting a potential upward movement to reach the upper band. Notably, the Relative Strength Index (RSI) maintains its position at 48, signaling a neutral outlook for this currency pair.
Resistance: 1.0954, 1.1000
Support: 1.0863, 1.0814
XAU/USD Retreats Amidst Dollar Weakness and Cautious Market Sentiment
Spot Gold experienced a shift in trajectory, rebounding from an early dip to $2,016.42 to trade around $2,024 during the American session, showcasing modest intraday losses. The weakened demand for the US Dollar, influenced by the strength in global indexes and Wall Street’s positive momentum fueled by robust earnings reports, played a pivotal role. However, market participants remain cautious as the upcoming week brings critical economic data releases, including the preliminary estimate of the Q4 Gross Domestic Product (GDP) in the United States. With various central banks revealing their monetary policy decisions, Gold faces a dynamic landscape, navigating uncertainties surrounding economic indicators and inflationary pressures.
On Monday, XAU/USD moved lower and was able to reach the middle band of the Bollinger Bands. Currently, the price moving just above the middle band suggesting a potential upward movement to reach the upper band. The Relative Strength Index (RSI) stands at 46, signaling a neutral outlook for this pair.
Resistance: $2,035, $2,052
Support: $2,010, $1,993
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
