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On Tuesday, stock markets experienced a sharp decline due to concerns among traders about contagion in the regional banking sector ahead of the Federal Reserve’s rate decision. The Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite all fell for a second consecutive session. Bank shares also declined, with the SPDR S&P Regional Banking ETF dropping more than 6%. Traders were questioning the stability of smaller regional financial institutions, including PacWest and Western Alliance, which declined by 27% and 15%, respectively.
The Federal Reserve’s two-day policy meeting, which began on Tuesday, is expected to result in the announcement of another quarter-point rate hike on Wednesday. Traders are pricing in a roughly 85% chance of a rate hike. Investors will be looking for clues about whether the Fed will keep rates steady after this meeting or further tighten monetary policy to fight inflation. Additionally, the U.S. Treasury warned on Monday that the country may hit the debt ceiling sooner than expected, which weighed on market sentiment.
Data by Bloomberg
On Tuesday, all sectors in the stock market experienced a decline of 1.16%. Among the sectors, energy was hit the hardest with a decline of 4.28%, followed by financials at 2.30%. Real estate and communication services also experienced significant drops of 1.74% and 1.78%, respectively. The remaining sectors also showed negative results, with consumer staples down 0.32%, health care down 0.49%, and information technology down 0.93%. Consumer discretionary was the only sector to show a slight increase of 0.16%.
Major Pair Movement
Data by VT Markets MT4
The US dollar index declined on Tuesday as below-forecast JOLTS and plummeting regional bank stocks caused Treasury yields to fall, resulting in renewed recession fears. The dollar lost ground against the yen, euro, and Swiss franc, while high beta currencies suffered. USD/JPY fell 0.67% as the S&P regional banking index dropped around 7% to its lowest level since May 2020. EUR/USD recovered from its risk-off lows and gained roughly 0.29% despite disappointing eurozone bank lending data, the first fall in core inflation since January 2022, and an unexpectedly large 2.4% drop in German retail sales. The focus is now on Wednesday’s ISM non-manufacturing and ADP releases, followed by the Fed’s announcement, which is expected to include a 25bp hike. The Fed will also have the Q1 loan officer survey and ongoing banking concerns to ponder beyond inflation and labor data.
Technical Analysis
EUR/USD (4 Hours)
The EUR/USD rose, breaking a two-day losing streak and reaching 1.1000, due to risk aversion in the market following a decline in stocks on Wall Street. The US JOLTS report showed lower-than-expected numbers. The Eurozone’s inflation rate in April increased slightly, with the core HICP dropping to 5.6%. The ECB is expected to raise interest rates on Thursday, with a 25 basis points hike predicted, but there are concerns about the potential risks of a 50 bps hike. The Q1 Bank Lending Survey revealed tight credit standards and a slowdown in credit demand. The Fed will make its decision on monetary policy on Wednesday, with a 25 basis points rate hike expected.
Based on technical analysis, the EUR/USD pair has experienced a slight upward movement and has successfully reached our previous resistance level. The current price is now situated above the middle band of the Bollinger band and is trying to reach the upper band. It is anticipated that the EUR/USD will reach our resistance level at 1.1026. The Relative Strength Index (RSI) is currently at 56, indicating that the EUR/USD is in a bullish mode.
Resistance: 1.1026, 1.1068
Support: 1.0984, 1.0962
XAU/USD (4 Hours)
The price of spot gold (XAU/USD) rose to a three-week high of $2,019.33 per troy ounce as the US dollar weakened due to disappointing US data and falling government bond yields. Stock markets fell amid concerns about the banking system, leading to increased demand for the safe-haven metal. The European Central Bank’s Bank Lending Survey showed a fall in demand for credit and tightening lending standards for companies. A group of US lawmakers urged the Federal Reserve to halt its rate hikes amid concerns about job losses and small businesses. The JOLTS Job Openings survey showed a decline in vacancies and an increase in layoffs, while Factory Orders rose slightly in March. US Treasury yields also fell as investors sought safety.
Based on technical analysis, the XAU/USD has moved back up and reached the resistance levels. It is currently situated at the upper band of the Bollinger Band and attempting to push even higher. The Relative Strength Index (RSI) is currently at 67, indicating that the XAU/USD may continue to rise and is currently in a bullish mode.
On Friday, the Dow Jones Industrial Average saw an increase, achieving its best monthly performance since January. The blue-chip index finished 0.8% higher, with the S&P 500 and the Nasdaq Composite also recording gains. The Dow rose by 2.5% for April, while the S&P 500 recorded a 1.5% monthly gain. More than half of S&P 500 companies have reported earnings so far, with 80% of those companies beating expectations, according to data from FactSet. As investors prepared for the Federal Reserve’s May policy meeting to begin, stock futures saw modest declines on Monday night.
During the regular trading session on Monday, the Dow, and Nasdaq Composite both experienced losses of about 0.1%, while the S&P 500 finished slightly below its flatline. Investors were focused on the bank sector after JPMorgan Chase won the weekend auction for troubled First Republic Bank. Additionally, investors will be monitoring data related to job openings, factory orders, and light vehicle sales, among other things. Companies such as Uber, Pfizer, and Molson Coors are set to report earnings before the bell, followed by Ford, Starbucks, Advanced Micro Devices, and Caesars Entertainment after the market closes.
Treasury Secretary Janet Yellen warned that the US may run out of measures to pay its debts as early as June 1, which investors are also watching for news on the debt ceiling.
Data by Bloomberg
On Monday, there was a slight decline of 0.04% in all sectors of the market, except for Health Care, which saw an increase of 0.59%, and Industrials and Utilities, which both saw a rise of 0.55% and 0.21%, respectively. Information Technology and Consumer Staples also saw minor gains of 0.18% and 0.09%, respectively. However, Real Estate and Consumer Discretionary both saw significant losses of 0.92% and 1.06%, respectively, while Energy experienced the largest decline of 1.26%.
Major Pair Movement
Data by VT Markets MT4
On Monday, the dollar index rose by 0.45% following the release of inflationary ISM data and JPM’s acquisition of FRC, which provided relief for the US bank crisis. This increase in the dollar index has increased the likelihood of a Fed rate hike on Wednesday, with a slightly higher probability of one more in June. This rise in the dollar index has also threatened to reverse the previous downtrend caused by the US banking crisis, which saw USD/JPY rates and risk-off-driven dive. However, USD/JPY soared on Monday, extending sharp gains following Friday’s dovish BoJ meeting.
EUR/USD fell by 0.4% after testing the 21-day moving average on Friday and last week’s lows. If the U.S. JOLTS and Wednesday’s ISM non-manufacturing and ADP reports favor a more hawkish Fed, there is an increased risk of an overbought top triggering a more significant correction of the March-April bank crisis-driven rally. Sterling experienced a 0.6% loss, but it remained above Friday’s lows by the 21-DMA. Meanwhile, IMM specs are the most net long EUR/USD since November 2020, expecting Fed rate cuts to begin while the ECB continues to hike later this year.
Technical Analysis
EUR/USD (4 Hours)
The EUR/USD pair experienced fluctuations on Monday and closed lower near an intraday low of 1.0963. The US dollar gained support from rising government bond yields and positive macroeconomic figures, including the April ISM Manufacturing PMI improving more than anticipated. Wall Street also saw gains, following news that JP Morgan rescued First Republic Bank assets with approval from the US regulator. Germany will release March Retail Sales and the Eurozone will unveil the preliminary estimate of the April Harmonized Index of Consumer Prices. The week will continue with the Fed and ECB’s monetary policy decisions and end with the US Nonfarm Payrolls report.
Based on the technical analysis, the EUR/USD pair has moved lower and broken below the 1.1000 level. Currently, the price has moved slightly higher after reaching the lower band of the Bollinger band, with expectations of moving higher and targeting the middle band. It is anticipated that the EUR/USD will reach the resistance level at 1.1013. The Relative Strength Index (RSI) is currently at 47, indicating that the market is neutral for the EUR/USD.
Resistance: 1.1013, 1.1068
Support: 1.0962, 1.0913
XAU/USD (4 Hours)
Gold (XAU/USD) prices were volatile on Monday, falling to $1,977 per troy ounce during the Asian session before recovering to $2,005.98 ahead of the US stock market opening. Thin volumes exacerbated movements, with most major financial markets closed for Labour Day. The US Dollar surged during the American session after the US published upbeat data, including March Construction Spending, which rose by 0.3% MoM, and the April ISM Manufacturing PMI, which printed at 47.1, beating expectations despite still signaling contraction. The rising US government bond yields also supported the dollar, with the 10-year Treasury note currently yielding 3.55%.
Meanwhile, the stock markets rose following news that JP Morgan took over the troubled First Republic Bank, which collapsed after customers withdrew over $100 billion in March. The Federal Deposit Insurance Corporation (FDIC) backed the deal, calming fears.
Based on technical analysis, XAU/USD is still moving in consolidation mode reaching the high and low. XAU/USD has the potential to move back higher as the price is moving toward the middle band after getting the lower band of the Bollinger band. The Relative Strength Index (RSI) currently stands at 47, suggesting a neutral trend in XAU/USD.
This week, market participants await the release of highly awaited economic reports, which will highlight key indicators such as Rate Statements in the US and Australia, as well as Employment Change in the US and Canada. These reports have immense significance as they enable traders and investors to make informed decisions and stay ahead of the market.
ISM Manufacturing PMI | US (May 1)
The US ISM Manufacturing PMI fell to 46.3 in March 2023, the lowest since May 2020.
Analysts expect a reading of 46.6 for April 2023.
Reserve Bank of Australia Rate Statement (May 2)
During its April meeting, the RBA held its cash rate steady at 3.6%, in line with market expectations. This marks the first pause in the current hiking cycle, which began in May 2022.
For April, analysts expect the central bank to keep the rate unchanged at 3.6%.
ISM Services PMI | US (May 3)
The US ISM Services PMI dropped to 51.2 in March 2023 from 55.1 in February 2023, the slowest growth in three months.
For April, analysts expect a reading of 50.6.
FOMC Meeting and Funds Rate | US (May 3)
The Fed raised its funds rate by 25bps to 5% in March 2023.
Despite a slower inflation rate, analysts anticipate that the central bank will continue to raise interest rates, with another 25bps hike to 5.25% in April 2023.
European Central Bank Main Refinancing Rate (May 4)
Most ECB policymakers agreed to raise key interest rates by 50bps to 3.5% last month, though some members would have preferred not to increase them until the financial market tensions had subsided.
The ECB is set to deliver a 25bps rate hike in its May meeting, with further increases expected to be implemented in subsequent meetings.
Employment Change | Canada (May 5)
The Canadian economy added 35,000 jobs in March 2023, while the unemployment rate remained unchanged at 5% for the fourth consecutive month. This is near the record low of 4.9% seen in June and July 2022.
For April 2023, it is anticipated that job creation numbers will drop slightly to 25,000. The unemployment rate is expected to be at 5.1%.
Employment Change | US (May 5)
The US economy created 236,000 jobs in March, the least since December 2020. Meanwhile, the unemployment rate edged down to 3.5% in March 2023.
Analysts expect the US to create 190,000 jobs in April 2023, while the unemployment rate will be at 3.5%.
On Thursday, the US stock market closed higher due to solid earnings from Meta Platforms, which boosted tech-related companies. The Dow Jones Industrial Average increased by 1.57% to 33,826.16, the Nasdaq Composite rose 2.43% to 12,142.24, and the S&P 500 climbed 1.96% to 4,135.35. It was the best day since January for the Dow and S&P 500 and since March for the Nasdaq. Meta shares surged by 13.9% following its better-than-expected quarterly revenue report, and several analysts raised their price targets for the company. Other tech-related companies such as Amazon, Alphabet, Microsoft, and Apple also experienced gains.
Despite weaker-than-expected GDP data, which suggested that the Federal Reserve could wrap up its tightening campaign soon, the stock market continued to rise. The US economy grew 1.1% in the first quarter, while economists had predicted an expansion of 2%. Honeywell, an industrial bellwether, rose by more than 4% due to its better-than-expected quarterly report. However, Caterpillar, another barometer of the global economy, fell by around 0.9% as investors feared a build-up in inventory suggested a slowdown in demand. The Dow and S&P 500 were slightly above their flatlines for the week-to-date, while the Nasdaq gained 0.6% over the same period. However, the Nasdaq has lagged month-to-date, shedding 0.7%, while the Dow and S&P 500 rose 1.7% and 0.6%, respectively, since April began. The Fed is expected to announce its latest policy decision next week.
Data by Bloomberg
On Thursday, all sectors in the US stock market experienced gains, with the communication services sector leading at 5.53% and the energy sector having the smallest increase at 0.44%. The consumer staples and healthcare sectors had modest gains at 1.04% and 0.51%, respectively, while the information technology sector rose by 2.17%. Overall, the stock market increased by 1.96%.
Major Pair Movement
Data by VT Markets MT4
On Thursday, the US dollar index remained mostly unchanged, increasing by only 0.08%, as the market focused on strong performances by tech companies with better-than-expected earnings reports. Investors are also looking ahead to the end of the week and the end of April and next week’s FOMC meeting, which could provide new direction from the Fed after a slowdown in interest rate hikes.
During the Asian session, the EUR/USD pair rebounded above 1.1030 with support from buying interest at the psychological level of 1.1000, aided by a correction in the US Dollar Index (DXY). The Federal Reserve is expected to raise rates by 25bps next week, followed by two 25bp cuts by the end of the year, while the ECB is fully priced for a 25bp hike in its May 4 meeting, followed by two more 25bp hikes by September, with no real rate cuts until 2024. The UK’s inflation rate of 10.1% presents a challenge for the BoE, but the sterling’s uptrend seems less strong than that of the EUR/USD pair. Late weakness in the equity market and oil prices may increase demand for the yen and dollar, leaving high beta pairs such as AUD/USD vulnerable unless upcoming US data alleviates concerns of a recession.
Technical Analysis
EUR/USD (4 Hours)
The EUR/USD is set to close flat on Thursday, hovering above the 1.1000 level, with the Euro facing strong resistance around 1.1060. The undecided market is contributing to the slow moves around the pair, as traders await new data ahead of a busy week with the Federal Reserve (Fed) and the European Central Bank (ECB) meeting, as well as the US official employment report. The ECB is expected to deliver an interest rate hike next week, with the question being how much: 25 or 50 basis points. Data due on Friday, including Eurozone GDP estimates and Consumer Price Index data from Germany, France, and Spain, will be critical ahead of that meeting. The inflation figures will put pressure on the ECB to curb inflation, with interest rate markets showing the expected peak rate at 3.75%.
Based on the technical analysis, the EUR/USD pair has moved lower and broken our support level. Currently, the price has moved below the middle band of the Bollinger band, with expectations of moving lower and targetting the lower band. It is anticipated that the EUR/USD will reach the support level of 1.0987. The Relative Strength Index (RSI) is currently at 50, indicating that the market is neutral for the EUR/USD.
Resistance: 1.1050, 1.1072
Support: 1.1016, 1.0987
XAU/USD (4 Hours)
The US Dollar bulls were supported by the United States’ preliminary Gross Domestic Product (GDP) data for Q1, which capped the upside attempts in XAU/USD price yet again. Although the headline US Q1 GDP number missed estimates, resilient personal consumption, inventories accumulation, and higher inflation component grabbed investors’ attention, ramping up the odds of a 25 basis points (bps) Fed rate hike next week. The details of the report triggered a fresh rally in the US Treasury bond yields across the curve, with the benchmark 10-year US Treasury bond yields recapturing the critical 3.50% level, reducing the demand for the safe-haven US government bonds and XAU/USD price. However, the risk-on flows allowed XAU/USD price to finish the day almost unchanged. Investors now look forward to the US Core PCE Price Index data for a fresh directional move in the XAU/USD price, as well as the end-of-the-week flows and repositioning ahead of next week’s Federal Reserve policy announcements, which could influence the US Dollar valuations and XAU/USD price action.
Based on technical analysis, XAU/USD reached back below the $2,000 level showing that the market is still in consolidation mode. XAU/USD has the potential to move back higher as the price is moving toward the middle band and try to reach the upper band of the Bollinger band. The Relative Strength Index (RSI) currently stands at 54, suggesting a neutral but bullish trend.
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Investor worries over First Republic Bank overshadowed excitement around Big Tech earnings, causing the Dow Jones Industrial Average to lose more than 200 points. First Republic Bank slid nearly 30%, extending losses after falling almost 50% on Tuesday. The regional bank reported a 40% drop in deposits to $104.5 billion in the first quarter, reigniting concerns about the health of the banking system.
Despite some market participants growing hopeful that e-commerce giant Amazon’s cloud business could show strong revenue growth, Alphabet shares finished down 0.1% after trading up earlier in the day. However, Microsoft climbed more than 7% to trade at its highest point in over a year after beating Wall Street’s expectations on the top and bottom lines in its latest quarter. This earnings week saw the Technology Select Sector SPDR Fund (XLK) add about 1.5% as investors increased their exposure to Big Tech.
Data released Wednesday morning showed that demand for long-lasting goods like appliances and computers was higher than economists expected in March, in a sign that the economy is showing resilience.
Data by Bloomberg
On Wednesday, the overall market saw a decline of 0.38%, while the Information Technology sector experienced a price increase of 1.73%. The biggest price declines were seen in the Utilities sector with a drop of 2.37%, followed by Industrials at 1.87% and Health Care at 1.41%. The Financials sector had a decline of 0.96%, while the Consumer Staples and Real Estate sectors both experienced declines of around 0.7%. The Communication Services sector saw a price decline of 0.62%, while the Energy and Materials sectors experienced larger declines at 1.28% and 1.18%, respectively.
Major Pair Movement
Data by VT Markets MT4
The US dollar index dropped by 0.37% on Wednesday, reversing the previous day’s trend of safe-haven flows into the dollar and yen. The focus shifted back to expectations of H2 rate cuts by the Federal Reserve, contrasting with anticipated rate hikes by the European Central Bank (ECB) and the Bank of England (BoE). Market volatility remained high, reflecting uncertainty over global economic conditions, geopolitical tensions, and the regulatory response to the US banking crisis.
The EUR/USD pair rebounded from its early intraweek low of 1.0960 on EBS, reaching a 13-month peak at 1.1096. The Federal Reserve is expected to hike rates by 25bps next week, followed by two 25bp cuts by year-end, while the ECB is fully priced for a 25bp hike in its May 4 meeting, followed by two more 25bp hikes by September, with no real rate cuts until 2024. The UK’s inflation rate of 10.1% presents a challenge for the BoE, but the sterling’s uptrend seems less strong than the EUR/USD pair. Late equity market and oil weakness may trigger renewed demand for the yen and dollar, with high beta pairs such as AUD/USD vulnerable unless upcoming US data alleviates recession concerns.
Technical Analysis
EUR/USD (4 Hours)
Although EUR/USD reached YTD highs on Wednesday, its short-term bullish outlook did not improve. The US Dollar strengthened, causing the pair to pull back from recent highs. This week, important data releases for the Eurozone are due, including consumer confidence data on Thursday, German inflation and EZ GDP growth on Friday, and the ECB meeting next week, where a rate hike is expected, but the extent of the hike is uncertain. While some data favors a 50 basis points hike, there are arguments for a more dovish approach due to renewed banking concerns and slowing inflation. The US Dollar posted mixed results on Wednesday, with the Euro outperforming, but the Dollar ended the day looking stronger as Wall Street slipped again. Important US data releases, including Q1 GDP and Consumer inflation, are expected on Thursday, ahead of next week’s FOMC meeting.
The EUR/USD pair has risen and broken above our resistance level, according to technical analysis. Currently, the price has moved above the middle band of the Bollinger band, with expectations of moving even higher and targeting the upper band. It is anticipated that the EUR/USD will reach the resistance level at 1.1073. The Relative Strength Index (RSI) is currently at 61, indicating a bullish market for the EUR/USD.
Resistance: 1.1073, 1.1131
Support: 1.1042, 1.1000
XAU/USD (4 Hours)
On Wednesday, Spot Gold (XAU/USD) struggled to surpass the $2,000 mark despite the improving market mood, while caution remains. US Dollar demand decreased due to positive earnings reports from large US corporations, but First Republic Bank’s troubles overshadowed it. Most Asian and European stock markets closed in the red, but Wall Street had modest gains. US data showed mixed results, and the US is set to publish Q1 GDP and Personal Consumption Expenditures Prices on Thursday.
Based on technical analysis, XAU/USD reached above the $2,000 level but then moved back below to $1,988 before going back higher and is currently at $2,000. XAU/USD has the potential to move even higher as the price is above the middle band and targeting the upper band of the Bollinger band. The Relative Strength Index (RSI) currently stands at 54, suggesting a neutral but bullish trend.
Big Tech earnings, led by Alphabet and Microsoft, boosted US stock futures on Tuesday evening. Dow Jones Industrial Average futures gained 0.1%, S&P 500 futures added 0.4%, and Nasdaq 100 futures increased by 1.2%. Microsoft beat Wall Street’s expectations in its latest quarter and posted strong revenue from its Intelligent Cloud business segment, driving shares up by 8%. Meanwhile, Google’s parent company Alphabet reported better-than-expected revenue and a profit in its cloud business for the first time, causing shares to rise by over 2%.
However, regular trading on Tuesday saw the Dow fall by 1%, the S&P 500 finish 1.6% lower, and the Nasdaq Composite dropping nearly 2%. This was partly due to First Republic Bank reporting a 40% decrease in deposits to $104.5 billion in the first quarter, which reignited concerns about the broader banking sector and put pressure on the major averages.
Investors will continue to monitor earnings results from travel companies such as Boeing, Hilton Worldwide, Spirit Airlines, and Travel + Leisure before the bell on Wednesday. Additionally, durable goods and mortgage purchase data will be released on Wednesday morning, followed by the latest GDP update on Thursday and the Personal Consumption Expenditures Price Index – the Fed’s preferred inflation gauge – on Friday.
Data by Bloomberg
On Tuesday, all sectors of the stock market experienced a price drop, with the biggest losers being the information technology and materials sectors, down 2.09% and 2.15%, respectively. The consumer discretionary sector also suffered a significant drop of 2.05%, while the utilities and consumer staples sectors fared slightly better with only a 0.10% and 0.12% decline, respectively.
The decline was driven by a combination of economic and geopolitical risks, including concerns about central banks’ inflation fights, as well as uncertainty surrounding the ongoing banking crisis. The financials sector was among the hardest hit, down 1.76%, as investors worried about the potential impact of the crisis on the broader banking sector.
Major Pair Movement
Data by VT Markets MT4
Investors across markets and regions experienced a bleak day as a multitude of economic and geopolitical risks caused them to seek refuge in the US dollar and yen. Central banks’ fights against inflation were seen as contributing to the growing risks that investors were concerned about.
First Republic Bank’s quarterly report, released on Monday, caused alarm in the markets, revealing the precarious state of the bank after March’s banking crisis. Investors are now speculating on the possibility of the acute phase of the banking crisis turning into a chronic issue, with the Federal Reserve nearing the end of its aggressive rate-hiking cycle amid an increased risk of a recession.
This flight to safety was reflected in the 20 basis point drop in the 2-year Treasury yield and a 39 basis point surge in one-month T-bill rates. Investors were pricing in 70 basis points of rate cuts before year-end, with a 25 basis point hike next week slightly less favored. In addition, the 5-year U.S. sovereign CDS soared to its highest level since 2011, now above Spain’s, as the debt ceiling remained unresolved.
EUR/USD decreased by 0.64% as investors moved their funds to the safe-haven dollar causing the currency to dive from its Asia trading peak at 1.1068, reaching Monday’s 1.0966 lows on EBS. It is expected that the ECB will hike by 25bp next week, with a slightly lower Q3 peak, and a 25bp rate cut priced by February.
The USD/JPY fell 0.38%, indicating the unwinding of yen-funded trades, as the BoJ’s easy policies leave no room for added accommodation, unlike other central banks seen to eventually cut rates. The GBP/USD settled near its lows, while the AUD/USD fell 0.88%. The data calendar is set to heat up on Thursday and Friday ahead of the Fed and ECB meetings next week.
Technical Analysis
EUR/USD (4 Hours)
The EUR/USD declined significantly on Tuesday, dropping to as low as 1.0963 amid risk aversion and renewed banking concerns. Despite US yields decreasing, the US Dollar Index rose by 0.55%, while German bonds rallied, causing the German 10-year yield to fall by 6.5% to 2.34%. ECB officials continued to hint at more rate hikes, with market participants seeing a 25 bps rate hike as more likely. Positive US housing data exceeded expectations, reflecting resilience in the economy, while Thursday will see the US reporting Q1 GDP and consumer inflation.
According to technical analysis, the EUR/USD pair has fallen and was able to break below our support levels. Currently, the price has moved below the middle band of the Bollinger band, with expectations of moving even lower and targeting the lower band. It is anticipated that the EUR/USD will reach the support level of 1.0949. The Relative Strength Index (RSI) is currently at 44, indicating a bearish market for the EUR/USD.
Resistance: 1.0997, 1.1053
Support: 1.0949, 1.0916
XAU/USD (4 Hours)
On Tuesday, financial markets turned risk-averse, leading to a rise in demand for the US Dollar and gold (XAU/USD). The US Dollar initially gained on the news of major central banks reducing their dollar operations with the Fed from daily to once a week starting May 1, as well as discouraging data from the US. The CB Consumer Confidence Index fell in April, and any reading below 80 is viewed as a sign of a near-term recession. Despite Treasury yields being under pressure, the US Dollar remains strong, preventing XAU/USD from rallying beyond $2,000.
Based on technical analysis, XAU/USD has reached the $2,000 level and has the potential to continue upward toward the upper band of the Bollinger band, indicating a bullish market for today. The Relative Strength Index (RSI) currently stands at 53, suggesting a likelihood for further upward movement.
Pandangan 
VT 
