Article by: ETO Markets
The offer made by Hamas for a truce and the release of captives detained in the Gaza Strip has been rejected by Israeli Prime Minister Benjamin Netanyahu. However, US Secretary of State Antony Blinken has raised the prospect of more talks to reach an agreement. Furthermore, a Hamas delegation headed by top official Khalil Al-Hayya is scheduled to travel to Cairo on Thursday in order to hold negotiations with Egypt and Qatar with the goal of coming to a ceasefire.
The price of gold is still struggling to acquire traction and is stuck in a narrow range. Trader interest in directional bets is being resisted by the unclear course of the Fed rate cut. A favorable risk tone and muted USD demand are factors driving the range-bound price movement.
A little increase in the AUD/USD pair is being maintained above 0.6500 after the release of mixed Chinese inflation data. As expected, China's CPI fell by 0.8% in January, although by just 0.5%. Additionally supporting the pair despite improved sentiment is a generally weaker US dollar. We anticipate Fedspeak and US statistics.
The European Central Bank stated that they are approaching a critical juncture where managing the possible knock-on effects will demand precise monetary policy adjustments and implementation. Regretfully, the most recent information that has been obtained does not allay her worries that this process may prove to be the most difficult to complete. Taking all of these things into account, she recommended being cautious and delaying changing the policy position right now.
If the price of the EUR/USD pair continues to rise over the important 200-DMA at 1.0835, the outlook is predicted to become negative. To reach the next weekly high of …, which reaffirms the psychological barrier of …, spot needs to rise over the weekly high of …. From this point, the December 2023 peak of … aligns more north.
Right now, the four-hour chart shows a slow rebound. Nevertheless, bullish attempts can aim to challenge the 100-SMA at …, which is ahead of …, and the 55-SMA at 1.0810. Conversely, the … breach reveals a decline to …. The RSI eases to around 40, and the MACD stays bearish.
Deputy Governor Sarah Breeden of the Bank of England stated on Wednesday that she is now more focused on determining how long interest rates should stay at their current level than she is on tightening them further. The GBP/USD exchange rate did not noticeably move in response to these remarks.
The 4-hour chart's Relative Strength Index indicator increased marginally above 50. More significantly, on Tuesday, the GBP/USD pair closed above the 200-DMA, which is presently at …. The recent uptrend's Fibonacci 23.6% retracement, at …, is the closest resistance to the upward before … where 20- and 50-DMAs are.
Before the 200-DMA at …, … might be seen as a temporary measure of support. A daily close below the latter might draw technical sellers and allow for a further decline into the psychological threshold, …, and the Fibonacci 38.2% retracement, which are at ….
