Friday Briefing: From DXY, Gold to Latest FX Headlines; Jan 20, 2023

US Dollar Index Overview

  • DXY moves in rigid boundaries and remains well supported above.
  • It made intraday high at 102.48 and low at 102.10 mark.
  • A day Chart and H1 chart with triple EMA suggest bearish trend for the time being.
  • Immediate hurdles are seen at 102.47 to 101.74 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 enjoys roller coaster movement and remains well supported above $1,920 mark.
  • The pair made intraday high at $1,937 and Low at $1,923 mark.
  • A day chart and H1 chart with triple EMA suggest bullish trend for the time being.
  • A sustained close above $1,934 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,922 on H1 chart will test further supports.
Supports
Resistances
$1,922
$1,936
$1,917
$1,942
$1,911
$1,948
$1,906
$1,954
$1,899
$1,960
$1,892
$1,967

 

Key Headlines for the FX market:

  • Ukraine said it expected strong decisions from NATO and other countries that are meeting today to discuss whether to send modern battle tanks and the United States said it was time to “dig deeper” to help Kyiv confront Russian forces.
  • People across China crowded into trains and buses for one of its busiest days of travel in years, feeding fears of new surges in a raging COVID outbreak that officials say has hit its peak.
  • Thousands of protesters in Peru, many from the country’s heavily indigenous south, descended on Lima, the capital, angered by a mounting death toll since unrest erupted last month and calling for sweeping change.
  • Fire swept through part of a shanty town in the South Korean capital, Seoul, destroying 60 homes, many constructed from cardboard and wood, and forcing the evacuation of around 500 people.
  • The White House is refusing to negotiate with hardline Republicans on raising the debt ceiling because it believes enough of them will eventually back off their demands, as a growing chorus of investors, business groups and moderate conservatives warn of the dangers of edging towards a default.
  • President Joe Biden said he has “no regrets” about his handling of classified documents found at his home and former office and that he believes the matter will be resolved.
  • A federal judge ordered former President Donald Trump and his attorneys to pay more than $937,000 in sanctions for suing former Secretary of State Hillary Clinton over claims the 2016 presidential election was rigged.
  • Global stocks were set for their first weekly loss of the year so far, as a rally driven by hopes of China fueling a global economic recovery was tempered by central bankers vowing to persist with rate hikes.
  • The lending unit of crypto firm Genesis filed for U.S. bankruptcy protection from creditors, toppled by a market rout along with the likes of exchange FTX and lender BlockFi.

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