Dollar gains on US yields growth ahead of ECB meeting, Gold shows a major decline

EUR/USD: The European currency fell against the US dollar on Tuesday as investors moved away from high-yielding assets. European data released yesterday was mixed. Germany published the September Economic Sentiment Survey, which showed a decline. The Eurozone also posted the same indicator and it was also worse than market expectations. The Eurozone Gross Domestic Product was revised up to 2.2%, better than expected. Today, the macroeconomic calendar will be scarce. The Eurozone won’t publish any relevant data while the US will release minor reports. The local resistance level can be seen at 1.1860. A breakout to the upside can trigger growth to 1.1905.


BUY 1.1865/TP 1.1905/SL 1.1851

 

AUD/USD: The Australian dollar fell against the US dollar yesterday after the publication of the Reserve Bank of Australia’s Interest Rate Decision. The central bank of Australia went ahead with its planned tapering of bond purchases and confirmed its need to see higher inflation to raise interest rates. RBA will purchase government securities at the rate of $4 billion a week and keep the purchases at this rate until mid-February 2022. Meanwhile, the doubling of the virus-led hospitalizations in the US in a year and a 67% hike in the Covid deaths in the last two weeks against the previous period drives the Covid fears in America. The same push President Joe Biden towards a six-pronged strategy, the details of which will be out on Thursday and Friday. The local support level can be seen at 0.7380. A breakout below could take the pair towards 0.7325.


SELL 0.7375/TP 0.7325/SL 0.7392

 

XAU/USD: Gold fell more than 1.5% on Tuesday due to broad US dollar strength. When the gold price was breaking below the 200-day SMA the bearish pressure increased, and the metal extended its losses. In the absence of high-tier macroeconomic data and fundamental drivers, rising US Treasury bond yields provided support to the greenback and put a lot of pressure on XAU/USD. The local support level can be seen at $1793. A breakout below could take the pair towards $1770.


SELL $1790/TP $1770/SL $1797

AMarkets App

AMarkets App

Free trading app for Android

Free trading app for iOS

ratings of app