EUR/USD Drops Over 0.5%, Gold Prices Fall Nearly 1% - Doo Prime News
Doo Prime News > Analysis > Market Insight > EUR/USD Drops Over 0.5%, Gold Prices Fall Nearly 1%

1. Forex Market Insight    

EUR/USD  

EUR/USD slipped 0.53% to 0.9968 on Tuesday, 20th September 2022, after falling to $0.9864 on 6th Sep 2022, the lowest in 20 years. 

Even after the European Central Bank (ECB) or Lagarde said the bank may need to raise interest rates to levels that limit economic growth to cool demand and combat unacceptably high inflation, the euro failed to get a boost. 

Technical Analysis:

(EUR/USD 1-hour chart)  

We focus on the 0.9999-line today. If EUR runs steadily below the 0.9999-line, then pay attention to the support strength of the two positions of 0.9909 and 0.9879. If the strength of EUR breaks above the 0.9999-line, then pay attention to the suppression strength of the two positions of 1.0116 and 1.0190.     

GBP Intraday Trend Analysis   

Fundamental Analysis:

The British pound fell 0.45% against the U.S. dollar to close at 1.1379 on Tuesday, 20th September 2022.  

The Bank of England will announce its interest rate decision on Thursday, 22nd September 2022, and investors are split on the likelihood of a 50 or 75 basis point rate hike.  

Technical Analysis:

(GBP/USD 1-hour chart) 

Execution Insight:   

GBP is mainly focused on the 1.1357-line today. If GBP runs below the 1.1357-line, it will pay attention to the suppression strength of the two positions of 1.1315 and 1.1250. If GBP runs above the 1.1357-line, then pay attention to the suppression strength of the two positions of 1.1421 and 1.1501. 

2. Precious Metals Market Insight   

Gold   

Fundamental Analysis:   

Gold prices fell nearly 1% on Tuesday, 20t September 2022, as the dollar and U.S. bond yields firmed and investors closed positions ahead of the Federal Reserve decision, which is widely expected to raise interest rates sharply. 

Other major central banks are also expected to continue tightening monetary policy in the face of surging inflation. 

The Swedish central bank raised interest rates by a full 100 basis points on Tuesday, 20th September 2022.  

The UK, Norway, Switzerland and Japan will also hold monetary policy meetings this week. 

Technical Analysis:   

(Gold 1-hour chart)   

Trading Strategies:   

Gold pays attention to the 1660-line today. If the gold price runs steadily below the 1660-line, then it will pay attention to the support strength of the 1642 and 1616 positions. If the gold price breaks above the 1660-line, then pay attention to the suppression strength of the two positions of the 1686 and 1697.          

3. Commodities Market Insight   

WTI Crude Oil   

Fundamental Analysis:

Oil prices fell Tuesday, 20th September 2022, following losses in other risk assets, and the dollar stayed strong as investors anticipated further interest rate hikes by major central banks to curb inflation. 

The Fed will likely raise rates by another 75 basis points on Wednesday, 21st September 2022, to curb inflation. 

These expectations put pressure on the stock market, and the oil market usually moves in tandem with the stock market. 

Several other major central banks, including the Bank of England, will also meet this week. 

Technical Analysis:   

(Crude oil 1-hour chart)

Trading Strategies:   

Oil prices focus on the 85.72-line today. If the oil price runs above the 85.72-line, then focus on the suppression strength of the two positions of 88.08 and 89.25. If the oil price runs below the 85.72-line, then pay attention to the support strength of the two positions of 82.72 and 81.07.  

Disclaimer    

While every effort has been made to ensure the accuracy of the information in this document, DOO Prime does not warrant or guarantee the accuracy, completeness or reliability of this information. DOO Prime does not accept responsibility for any losses or damages arising directly or indirectly, from the use of this document. The material contained in this document is provided solely for general information and educational purposes and is not and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, securities, futures, options, bonds or any other relevant financial instruments or investments. Nothing in this document should be taken as making any recommendations or providing any investment or other advice with respect to the purchase, sale or other disposition of financial instruments, any related products or any other products, securities or investments. Trading involves risk and you are advised to exercise caution in relation to the report. Before making any investment decision, prospective investors should seek advice from their own financial advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.  

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