Market Movers: US GDP & Core PCE Could Fuel Silver and EUR/USD Rally
Analyzing Market Movements: US GDP and Core PCE
The EUR/USD pair reached its yearly peak at 1.1215 before a retreat of around 80 pips following strong US home sales data. XAG/USD has also seen gains due to a weaker dollar, hitting a 5-month high of $32.50.
Current Economic Landscape
As we approach month-end and quarter-end, market volatility may increase. The US dollar and yields could attempt to recover; however, the Fed's dovish outlook and anticipated 50 basis point rate cut in 2024 may exert continued pressure on the dollar. As a result, the difference in monetary policy between the ECB and the Fed may shrink, providing advantages for Euro buyers. Simultaneously, non-yielding Silver may also gain from global interest rate reductions.
Key Events This Week
- US GDP
- US Core PCE Index
- Fed Chair's Speech
Should the US GDP exceed 3.0%, we might observe strengthened dollar bulls. Likewise, if Core PCE data surpasses 0.2%, the dollar may rebound against other currencies and commodities.
EUR/USD Chart Analysis
Having briefly surpassed the August 26 highs, the EUR/USD price printed a bearish pin-bar candle on the daily chart. Yet, it remains above the 20-day SMA, indicating a lower likelihood of a bearish reversal. Both 50-day and 100-day SMAs are trending positively. A key support level at 1.1065 needs to hold for buyer strength.
Resistance and Support Levels
EUR/USD Key Resistance Levels
- 1.1065 (recent swing low)
- 1.1000 (psychological mark)
- 1.0945 (key horizontal level)
EUR/USD Key Support Levels
- 1.1153 (order block)
- 1.1200 (psychological mark)
- 1.1275 (2023 high)
XAG/USD Chart Analysis
Silver continues to align closely with gold, with XAG/USD recently marking a high above $32.00. A slight pullback has occurred, but the uptrend is supported by key moving averages.
Market Consolidation and Key Levels
The 20, 50, and 100 SMAs on the daily chart indicate potential consolidation. The price may retreat towards the $30.00 level, yet this does not dismiss the ongoing bullish trend supported by robust order blocks.
XAG/USD Key Resistance Levels
- 32.73 (potential new top)
- 32.26 (recent swing high)
XAG/USD Key Support Levels
- 31.28 (order block)
- 31.31 (swing low)
As critical economic events unfold, traders focusing on Silver and EUR/USD may find actionable opportunities.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.