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EUR/USD Hit Lowest Since 2020 June, Gold Surged Sharply


1. Forex Market Insight

EUR/USD 

EUR/USD fell 1.8% yesterday to 1.1105, its lowest level since June 2020. The euro has given back the gains after the ECB issued a more hawkish tone earlier this month. 

Technical Analysis: 

(EUR/USD 1-hour chart) 

Execution Insight: 

Today, we will pay attention to the support strength of the 1.1096-line. If the euro runs steadily above the 1.1096-line, we will pay attention to the suppression strength of the two positions of 1.1226 and 1.1267. If the strength of the euro breaks below the 1.1096-line, we will pay attention to the support of the 1.1031-line.  

GBP Intraday Trend Analysis 

Fundamental Analysis: 

Geopolitical events have increased the upside risk to inflation forecasts, although they pose some downside risk to near-term growth forecasts. Given the situation in Ukraine, this has led to a 2% drop in the pound against the dollar, ending the day 1.23% lower at 1.3373. 

Technical Analysis: 

(GBP/USD 1-hour chart)

Execution Insight:  

The pound is mainly focused on the 1.3642-line today. If the pound runs below the 1.3642-line, it will pay attention to the support strength of the 1.3516 and 1.3489 positions. If the pound runs above the 1.3642-line, it will pay attention to the suppression strength of the 1.3661 and 1.3712 positions. 

2. Precious Metals Market Insight 

Gold 

Fundamental Analysis:  

Yesterday, the price of gold surged sharply at one point, reaching the highest level of the 1974-line, a new high since September 2020.  

The Russian-Ukrainian war is still ongoing, and the market’s risk aversion impulse is still strong. After the weaker-than-expected sanctions implemented by Biden on Russia, gold prices took profits to give back all the gains. 

The focus of the day remains on the Russia-Ukraine war. In addition, the Fed’s favored inflation indicator, and the U.S. PCE price index for January will be released soon. 

Technical Analysis: 

(Gold 1-hour chart) 

Trading Strategies: 

Gold pays attention to the 1887-line today. If the gold price runs steadily above the 1887-line, then it will pay attention to the suppression of the 1919 and 1929 positions. If the gold price breaks below the 1887-line, it will open up further downside trend. At that time, pay attention to the 1869 and 1855-lines strength of support at each position. 

3. Commodities Market Insight

WTI Crude Oil  

Fundamental Analysis: 

Oil prices spiked yesterday after being influenced by news of Russia’s invasion of Ukraine. Once breaking the 100 mark during the day, U.S. oil peaked at $100.54 per barrel. 

In addition, oil price gains were limited by President Biden’s statement that he is working with major consumer countries to join forces to release crude oil from the Strategic Petroleum Reserve. 

By the fact that the latest U.S. sanctions did not include restrictions on Russian crude oil supplies, oil price gains were limited. 

Technical Analysis: 

(Crude oil 1-hour chart)

Trading Strategies: 

Oil prices focus on the 91.54-line today. If the oil price runs above the 91.54-line, then focus on the suppression of the 95.05 and 97.33 positions. If the oil price breaks below the 91.54-line, then pay attention to the support of the 90.44-line. 

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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