EUR/USD looks to Lagarde & Powell
EUR/USD is edging lower, extending losses in the previous session after the USD traced treasury yields higher and the Euro fretted over lengthy coalition talks in Germany.
Today German GFK consumer confidence came in better than expected in October at 0.3, up from -1.1 in September and defying a steeper decline of -1.6 forecast.
US Consumer confidence survey from the Conference Board is due later today.
However, central bank speaks will be the key focus with ECB’s Lagarde and Fed Powell both due to speak in addition to a host of other ECB and Fed speakers.
Where next for EUR/USD?
After forming a double top at the start of the month EUR/USD has been trending lower. It trades below its month old descending trendline and below the 50 sma.
The RSI is supportive of further losses whilst it remains out of oversold territory.
Support can be seen at 1.1685 last week’s low ahead of 1.1665. A break below here could expose 1.16 a level last seen in November last year.
Any recovery would need to retake 1.1730 the falling trendline ahead of 1.1750 last week’s high. This could expose the 50 sma at 1.1780.
Gold awaits Fed Powell’s testimony before Congress
Gold prices are under pressure amid rallying US treasury yields boosting the US Dollar. US treasury yields are trading around 3-month highs
Investors are looking past the Evergrande drama and fears that it could default and are focusing on more hawkish central banks amid the improving economic picture.
Attention is now on Federal Reserve Chair Jerome Powell who is due to testify before Congress later today after he commented that the Feed would move against surging inflation if required.
Where next for Gold prices?
Gold trades below its month old falling trendline, and below its 50 sma. The formation of a double top at the start of the month and the bearish RSI are keeping the Gold bears optimistic.
Immediate support can be seen at 1737 last week’s low. A breakthrough here could open the door to 1717 the August 10 low and 1700 round number, before bears look towards 1680 the August low.
Any recovery would need to retake 1760 yesterday’s high, ahead of 1775 the falling trendline resistance. It would take a move above 1788 the 50 sma for the bulls to gain traction.