14 Dec, 2023
5 minutes
Daily Technical Analysis December 14th 2023
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:
Eurozone industrial output fell 0.7% in October, indicating the industry remains in recession at the start of the fourth quarter. If output in November and December maintains at October levels, it would mean the fifth consecutive quarter decline. Weakness in industry has been widespread since mid-2022, and the data does not prove evidence to a rebound. The biggest decline was in capital goods output, which has been a major drag on economic growth since last year.
Trend Analysis:
We can see the EUR/USD broke through strongly on H4 chart, and it ran above 48 hours moving average. At the same time, the MACD double line and histogram bar spread upward after failing to retreat near zero axis. The price cannot be ruled out to rebound further, as a result, the buy limit could be employed, stop loss is necessary.
Today's Key Price Levels:
Key Support Levels: [1.0800]
Key Resistance Levels: [1.1000]
Pivot Points [1.0850]
2. Gold Analysis:
News Summary:
Federal Reserve kept interest rates unchanged, and Chairman Jerome Powell said that the historic tightening cycle of US monetary policy may be over, and the issue of interest rate cut has begun to come into view. After the release of the policy statement and forecast, the US dollar fell sharply to a new low in the past two weeks, US Treasury yields hit four months low of 4%, the Dow Jones Index hit a record high, and gold rose sharply by more than $40.
Trend Analysis:
We can see gold H4 has risen sharply after the Federal Reserve turned dovish. The price is currently running above the 48 hours moving average, MACD double line and energy column forms bottom divergence below zero axis. The market is betting on an interest rate cut in 2024, and hedging function of precious metals is highlighted. The short-term tactic is to set sell limit, stop loss is compulsory.
Today's Key Price Levels:
Key Support Levels: [2000]
Key Resistance Levels: [2052]
Pivot Points [2043]