EUR/USD Shifts Amid Stronger Dollar and Upcoming FOMC Meeting

In the first half of the day, the XAU/USD saw a surge, reaching $2,007.91 per troy ounce, buoyed by optimism in European financial markets due to softer Euro Zone inflation figures. However, the American session witnessed a downturn as dismal US data spurred demand for the US Dollar. The US Consumer Confidence index dipped slightly in October, and Wall Street's early gains were erased, contributing to USD strength. The Bank of Japan's conservative stance on yield-curve control also impacted the currency market. Now, market participants await the US Federal Reserve's November meeting with uncertainties surrounding the end of the tightening cycle.

According to technical analysis, XAU/USD is moving lower on Monday and able to reach the narrow lower band of the Bollinger Bands. Presently, the price of gold is consolidating near the lower band, creating a possibility to push lower and create a wider band. The Relative Strength Index (RSI) is currently at 42, indicating a neutral bias for the XAU/USD pair.

Resistance: $1,992, $2,007
Support: $1,977, $1,962