EURUSD XAUUSD Market Insight

EUR/USD  

SEB acknowledged in a report that signs of a lower euro at the beginning of the fourth quarter still exist, but become less obvious in November and December, when seasonal factors will weaken the US dollar. Current macroeconomic trends will support a stronger dollar, because viewpoint of soft landing and the monetary policy stance of keeping interest rates at higher levels for longer are highly supportive.   

We can see EUR/USD rebounded from oversold area after nonfarm payroll data published, the price tried to cross 1.0600 mark but failed. On the other hand, MACD histogram bar and double line has stood above zero axis, it is a signal of potential trend reversal on H4 chart. The reasonable strategy is to set buy limit near 48 hours moving average, stop loss is necessary.

XAU/USD 

The nonfarm payrolls report once pushed gold to seven-month low, but it soon rebounded sharply from the bottom. In addition, gold prices skyrocketed on Monday due to the Palestine-Israel conflict. Gold is likely to continue rising in coming weeks, and the breakthrough above resistance at 1,860 could bring key reversal. If so, then it would indicate that the short-term trend has been improved despite a stronger dollar.  

 We can see gold soared after nonfarm payroll data issued, in addition, Palestine-Israel conflict also provided rising momentum. The price has crossed 48 hours moving average, which is a sign of trend reversal. Moreover, MACD double line is touching zero axis on H4 chart. Although US dollar may keep strong state until to mid of 2024, the risk factors cannot be ignored. The buy limit could be set around 1835, stop loss is compulsory.