Friday Briefing: From DXY, Gold to Latest FX Headlines; Dec 02, 2022

US Dollar Index Overview

  • DXY appreciates as U.S. NFP data meets the expectations and stabilizes around 105.00 mark.
  • It made intraday high at 105.58 and low at 104.43 mark.
  • A day Chart and H1 chart with triple EMA suggest down trend for the time being.
  • Immediate hurdles are seen at 105.65 to 104.40 mark.
  • A sustained close of either side on H1 chart requires for the further directions of the U.S. dollar.

Technical Analysis: XAU/USD (Gold)

  • Gold weakens sharply after robust U.S. NFP job data and touches $1,778 mark.
  • The pair made intraday high at $1,803 and Low at $1,778 mark.
  • A day chart and H1 chart with triple EMA suggest bullish trend for the time being.
  • A sustained close above $1,794 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,778 on H1 chart will test further supports.
Supports
Resistances
$1,778
$1,794
$1,772
$1,802
$1,767
$1,808
$1,761
$1,814
$1,756
$1,820

 
Key Headlines for the FX market:

  • Russian President Vladimir Putin is open to talks on a possible settlement in Ukraine but the West must accept Moscow’s demands, the Kremlin said, a day after U.S. President Joe Biden said he would be willing to speak with Putin on ending the war.
  • Further easing of COVID testing requirements and quarantine rules in some Chinese cities was met with a mix of relief and worry, as hundreds of millions await an expected shift in national virus policies after widespread social unrest.
  • Israeli Prime Minister-designate Benjamin Netanyahu reached a coalition deal with the far-right Religious Zionism party, bringing him closer to securing a new government after an election last month.
  • Biden rolled out the red carpet for celebrities, lawmakers, and titans of industry at the White House’s first state dinner in honor of French President Emmanuel Macron.
  • The Supreme Court agreed to hear Biden’s bid to reinstate his plan to cancel billions of dollars in student debt after it was blocked by a lower court in a challenge by six states that have accused his administration of exceeding its authority.
  • U.S. job growth was likely the smallest in nearly two years in November as mounting worries of a recession cooled demand for labor, which could give the Federal Reserve confidence to start slowing the pace of its interest rate hikes this month.

Source: Reuters

Keep an eye open for the latest news and fundamentals affecting the FX markets.

Take a look and do trade wisely!
Good Luck