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Market Analysis

EURUSD Slips Amid Stronger USD, Holds Above 1.0800 Mark
Amos Simanungkalit · 40.1K Views

 


EURUSD

 

EURUSD_2024_04_08_11_34_31.png

 

The EURUSD pair continued its downward trajectory on Monday, failing to sustain the rebound it experienced on Friday. Opening around the 1.0825-1.0820 region, the pair faced renewed selling pressure during the Asian session. Despite the modest rebound seen last week, the overall sentiment remains bearish for the Euro against the US Dollar.


The upbeat US Non-Farm Payrolls (NFP) data released on Friday continued to underpin the USD, contributing to the downward pressure on the EURUSD pair. Moreover, the positive risk tone observed in the market might cap the safe-haven appeal of the greenback, limiting further downside for the EURUSD pair.


Position: Short EURUSD


WTI

Oil prices experienced a sharp decline on Monday, with both Brent and WTI futures slipping significantly. Brent crude futures fell by 1.9% to $89.47 a barrel, while US West Texas Intermediate (WTI) crude dropped by a similar percentage to $85.29 a barrel. The decline in oil prices was primarily attributed to easing tensions in the Middle East, following Israel's withdrawal of soldiers from southern Gaza and commitment to ceasefire talks.


The market sentiment towards oil has shifted as geopolitical risks in the region subside, leading to profit-taking and selling pressure on oil futures. However, the situation remains fluid, and any escalation in tensions could quickly reverse this trend.


Position: Neutral WTI


XAUUSD

XAUUSD_2024_04_08_11_34_21.png

 

XAUUSD prices retreated during the Asian session on Monday, hovering near $2,310 per troy ounce after reaching a new record high on Friday. The precious metal faced challenges from higher US Treasury yields, which diminish the attractiveness of non-yielding assets like gold.


Additionally, the recent strength in the US Dollar added downward pressure on gold prices, making it more expensive for investors holding other currencies to purchase gold. This led to a decrease in demand for the precious metal, further contributing to its decline.


Position: Short XAUUSD


Entry Suggestions:


EURUSD: Considering the bearish sentiment surrounding the EURUSD pair and the ongoing strength of the US Dollar, a short position could be initiated with an entry point around 1.0820-1.0825. Traders may target initial support levels near 1.0780, with further downside potential towards 1.0750.


WTI: With oil prices experiencing a notable decline due to easing Middle East tensions, it's prudent to remain neutral for now and wait for clearer market direction. A potential entry point for long positions could emerge if tensions escalate again, leading to renewed buying interest in oil futures.


XAUUSD: Given the bearish pressure on gold prices driven by higher Treasury yields and a stronger US Dollar, short positions could be considered with an entry point near $2,310 per troy ounce. Initial targets may be set around $2,280, with further downside towards $2,250 as potential support levels.


Conclusion

The market dynamics for EURUSD, WTI, and XAUUSD reflect ongoing trends driven by various factors such as economic data releases, geopolitical developments, and shifts in investor sentiment.

 


Disclaimer

Derivative investments involve significant risks that may result in the loss of your invested capital. You are advised to carefully read and study the legality of the company, products, and trading rules before deciding to invest your money. Be responsible and accountable in your trading.


RISK WARNING IN TRADING

Transactions via margin involve leverage mechanisms, have high risks, and may not be suitable for all investors. THERE IS NO GUARANTEE OF PROFIT on your investment, so be cautious of those who promise profits in trading. It's recommended not to use funds if you're not ready to incur losses. Before deciding to trade, make sure you understand the risks involved and also consider your experience.

 

Paraphrasing text from FXStreet, and Reuters all rights reserved by the original author.

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