Introduction:
Welcome to our daily technical analysis of the financial markets, focusing today on EUR/USD and Gold. Let's dissect the latest news, market trends, and crucial price levels to watch out for.
1. EUR/USD Analysis:
News Summary:
The European Central Bank will cut its inflation forecast. Data on Tuesday showed that euro zone inflation fell sharply in October to 2.9% from 4.3% in September. The base effect of energy prices fell by more than 10% year-on-year, increasing the downward trend in whole inflation and is expected to reverse in the future. Owing to core inflation fell faster than the ECB expected, it was enough for the ECB to lower its inflation target in December.
Trend Analysis:
We can see EUR/USD fell sharply after rebounding duo to the decline of inflation in Eurozone. At the same time, the MACD histogram bar and the double line formed dead cross. As core inflation falls more than expected, the ECB will see a dovish turn in the future, and EUR/USD may regain downward momentum. Consequently, selling or sell limit tactic is useful, stop loss is necessary.
Today's Key Price Levels:
Key Support Levels: [1.0450]
Key Resistance Levels: [1.0670]
Pivot Points [1.0620]
2. Gold Analysis:
News Summary:
In the current macroeconomic and geopolitical context of uncertainty, central banks are turning to gold for its stable return, liquidity, and safety. According to data from the World Gold Council, demand for gold from central banks in the third quarter of this year increased by 14% compared with the same period last year, which was the third highest quarterly net purchase of gold in history. The total gold purchase of central bank since the beginning of 2023 has reached 800 tons.
Trend Analysis:
We can see gold has begun to retreat, MACD histogram bar and double line has formed top divergence. The safe-haven demand is still existing in light of conflict in the Middle East. A stronger job market could have a positive impact on bond yields and a negative impact on gold. Investors should pay attention on FED rate conference, the buy limit could be set in case of potential conflict escalation, stop loss is mandatory.
Today's Key Price Levels:
Key Support Levels: [1960]
Key Resistance Levels: [2000]
Pivot Points [1970]
