Spreads
Spreads
Spreads
Spreads
Spreads
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EUR/USD Outlook Amidst US Dollar Fluctuations and Central Bank Decisions
As the US Dollar’s demand declines, the EUR/USD pair may see fluctuations influenced by recent central bank decisions and US economic data. With the Reserve Bank of Australia maintaining a cautious stance and the possibility of delayed rate cuts by the Federal Reserve, investor sentiment shifts, impacting bond yields and the USD’s appeal. Additionally, remarks from Federal Reserve officials, including Loretta Mester, could further influence market dynamics and the EUR/USD trajectory, amidst a lack of significant macroeconomic releases.
On Tuesday, the EUR/USD moved flat between the lower and middle bands of the Bollinger Bands. Currently, the price is moving just below the middle band with wider bands, suggesting a potential upward movement to reach the middle band. Notably, the Relative Strength Index (RSI) maintains its position at 42, signaling a neutral but bearish outlook for this currency pair.
Resistance: 1.0817, 1.0880
Support: 1.0724, 1.0662
XAU/USD Recovers as US Dollar Demand Weakens Amid Central Bank Caution
Spot Gold (XAU/USD) experienced a recovery on Monday, trading near an intraday high of $2,038.17, as demand for the US Dollar waned following global central bankers’ hints at maintaining current monetary policies, contrary to earlier investor expectations for tighter monetary conditions. This shift came after the Reserve Bank of Australia signaled a possible continuation of rate hikes if necessary, aligning with cautious sentiments from other central banks. Despite strong US macroeconomic data supporting the Dollar and boosting government bond yields, a subsequent rally in bonds and a retreat in yields by Tuesday signaled a market repositioning that favored Gold. This adjustment occurs in a week’s light on macroeconomic announcements but with anticipated comments from Federal Reserve officials, including Loretta Mester.
On Tuesday, XAU/USD moved higher and was able to reach the middle band of the Bollinger Bands. Currently, the price is moving slightly below the middle band, suggesting a potential upward movement to reach the upper band. The Relative Strength Index (RSI) stands at 51, signaling a neutral outlook for this pair.
Resistance: $2,043, $2,062
Support: $2,031, $2,016
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
