Market Analysis
EURUSD
The EUR/USD pair extended its downward trajectory for the fourth consecutive day, reflecting the prevailing strength of the US Dollar (USD). Trading near 1.0780 during the Asian trading hours, the pair faces continued pressure amid a hawkish sentiment surrounding the Federal Reserve (Fed). Recent robust economic indicators from the United States have bolstered expectations of prolonged higher interest rates, further boosting the USD.
Key contributors to the USD's strength include remarks from Fed's Waller, who hinted at a potential delay in interest rate cuts amidst stronger inflation figures. Additionally, ECB's Villeroy's affirmation of the attainability of the ECB's inflation goal of 2% contrasts with the Fed's stance, amplifying the bearish sentiment surrounding the EUR/USD pair.
Position: Bearish
Entry Suggestion: Consider short positions if the pair breaches below 1.0770, targeting the next support levels at 1.0750 and 1.0700.
WTI
Oil prices surged over $1 a barrel, concluding the month on a high note driven by multiple factors. The prospect of OPEC+ maintaining production cuts, coupled with persistent attacks on Russia's energy infrastructure and a declining U.S. rig count, has tightened crude supplies, supporting bullish sentiments in the market.
Brent crude futures for May settled at $87.48 a barrel, marking its highest level since October 27, propelled by a gain of $1.39 or 1.6%. Similarly, the June contract settled at $87 a barrel, rising $1.58, with the May contract expiring on Thursday. Meanwhile, U.S. West Texas Intermediate (WTI) crude futures for May delivery settled at $83.17 a barrel, climbing $1.82 or 2.2%.
On a weekly basis, both Brent and WTI benchmarks posted gains, with Brent rising 2.4% and WTI gaining approximately 3.2%, extending their upward momentum for a third consecutive month.
Position: Bullish
Entry Suggestion: Consider long positions if WTI breaches above $84.00, targeting resistance levels at $85.50 and $87.00.
XAUUSD
Gold prices surged during the North American session, reaching a new all-time high of $2,225, despite advancing US Treasury yields, which typically strengthen the Greenback. The bullish momentum in gold is underpinned by hawkish comments from a Federal Reserve policymaker and robust economic data from the United States, which continue to support both the US Dollar and gold prices.
Currently trading at $2,221, XAU/USD has gained more than 1.20%, reflecting the strong demand for the precious metal amidst the prevailing market conditions.
Position: Bullish
Entry Suggestion: Consider long positions if XAU/USD breaches above $2,230, targeting resistance levels at $2,250 and $2,270.
Conclusion
In summary, the market trends for EUR/USD, WTI crude oil, and XAU/USD suggest distinct trading opportunities. The EUR/USD pair remains bearish amid a stronger USD influenced by hawkish sentiments from the Federal Reserve. Conversely, WTI crude oil continues its bullish momentum driven by supply concerns stemming from ongoing attacks on energy infrastructure and production cuts. Gold prices also demonstrate a bullish trend, hitting new all-time highs despite the strengthening US Dollar, supported by hawkish comments from Fed officials and solid economic data.
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Paraphrasing text from FXStreet, and Reuters all rights reserved by the original author.