Friday Briefing: From DXY, Gold to Latest FX Headlines; March 03, 2023

US Dollar Index Overview

  • DXY trades in narrow range on Friday and remains well supported above 104.50 mark.
  • It made intraday high at 104.93 and low at 104.60 mark.
  • A day Chart is up and H1 chart with triple EMA suggests down trend for the time being.
  • Immediate hurdles are seen at 105.15 to 104.49 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 during U.S. Session and remains well supported below $1,850 mark.
  • The pair made intraday high at $1,849 and Low at $1,837 mark.
  • A day chart is down and H1 chart with triple EMA suggests up trend for the time being.
  • A sustained close above $1,848 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,838 on H1 chart will test further supports.
Supports
Resistances
$1,832
$1,848
$1,827
$1,854
$1,822
$1,860
$1,817
$1,864
$1,812
$1,868
$1,808
$1,872

 
Key Headlines for the FX market:

  • U.S. ISM Services PMI stands at 55.1 vs 55.2 previous relaase.
  • Russian troops and mercenaries were closing off the last access routes to the besieged Ukrainian city of Bakhmut, on the cusp of Moscow’s first major victory in half a year after the bloodiest fighting of the war.
  • Greek railway workers extended their strike to a second day, and more protest rallies were planned, amid anger over the devastating train crash that killed at least 57, among them many university students.
  • As unprecedented protests against China’s zero-COVID policies escalated in November, Li Qiang seized the moment. We report on how Li, who is set to be named the country’s new premier this month, hastened the end of lockdowns.
  • The House of Representatives Ethics Committee said it had opened an investigation into Republican congressman George Santos, who has admitted to lying about his resume but defied calls to step down.
  • The Supreme Court signaled it may sidestep a ruling in a major case involving a Republican bid to give state legislatures far more power over federal elections by limiting the ability of state courts to review their actions.
  • Legislation being pursued by Republicans in several states aims to limit use of a planned merchant code for credit card transactions at gun retailers meant to detect suspicious firearms and ammunition sales, undermining a tool welcomed by gun control advocates.
  • A bipartisan group of 12 senators reintroduced legislation that would make daylight saving time permanent, nearly a year after the Senate voted unanimously to end clock switching.
  • The recovery in euro zone business activity gathered pace last month as growth accelerated in the bloc’s dominant services industry, a survey showed, providing the latest piece of evidence suggesting the currency union will avoid a recession.

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