EURUSD
The EURUSD pair opened the day with a mild negative bias, struggling to gain meaningful traction during the Asian session on Tuesday. The pair oscillated in a narrow trading band below the 1.0900 round-figure mark. The subdued performance is attributed to reduced bets for a March Fed rate cut, which is currently underpinning the USD and acting as a headwind for the Euro.
The market sentiment reflects a cautious approach as traders analyze the potential impacts of the Fed's monetary policy decisions. The pair's inability to break above the 1.0900 level suggests a lack of bullish momentum. Traders are likely adopting a wait-and-see approach, anticipating more clarity on the Fed's stance.
Technical Analysis:
Current Price: 1.0880
Support: 1.0850, 1.0800
Resistance: 1.0920, 1.0950
The mild negative bias may continue if the pair fails to breach the resistance at 1.0920. Traders might consider short-term sell positions with a target around the support levels at 1.0850 and 1.0800. However, caution is advised, as unexpected developments in the Fed's monetary policy could lead to sudden market shifts.
XAUUSD
XAUUSD prices are maintaining their position above $2,000 per ounce in the new year, with analysts from JPMorgan predicting further support from additional rate cuts in 2024. The precious metal is expected to benefit from the return of investment demand, driven by economic and geopolitical uncertainty. XAUUSD reputation as a safe-haven asset, offering a reliable store of value, is a key factor supporting its current levels.
Technical Analysis:
Current Price: $2,050 per ounce
Support: $1,980, $1,950
Resistance: $2,080, $2,100
Gold's resilience above $2,000 indicates a strong bullish sentiment. Traders might consider long positions with a target around the resistance levels at $2,080 and $2,100. However, monitoring global economic and geopolitical developments is crucial, as any positive shifts could impact gold's safe-haven appeal.
WTI Crude
WTI crude futures held just below $75 per barrel, near the highest levels in four weeks. The recent surge is fueled by concerns over a potential wider conflict in the Middle East. Fresh strikes by US and UK forces on Houthi targets in Yemen have raised fears of supply disruptions in the region. Additionally, reports of Ukrainian drones attacking energy facilities on Russia’s Baltic coast led to a 2% jump in oil prices on Monday.
Technical Analysis:
Current Price: $74.80 per barrel
Support: $73.50, $72.00
Resistance: $76.00, $77.50
The geopolitical tensions are driving oil prices higher, with $75 acting as a critical level. Traders may consider long positions with a target around the resistance levels at $76.00 and $77.50. However, it is essential to stay updated on geopolitical developments, as any de-escalation could lead to a reversal in oil prices.
Entry Suggestions:
EURUSD: Consider short positions if the pair fails to breach the resistance at 1.0920, with targets at 1.0850 and 1.0800. Exercise caution and monitor Fed-related news for potential market shifts.
XAUUSD: Explore long positions as XAUUSD maintains its position above $2,000, with targets at $2,080 and $2,100. Keep an eye on economic and geopolitical developments for any signs of changing market sentiment.
WTI Crude: Consider long positions with a target around the resistance levels at $76.00 and $77.50. Stay vigilant about geopolitical news, as any de-escalation could impact oil prices negatively.
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Paraphrasing text from FXStreet, Kitco and Trading Economic all rights reserved by the original author.
