Thursday Briefing: From DXY, Gold to Latest FX Headlines; Dec 08, 2022

US Dollar Index Overview

  • DXY depreciates on Thursday and remains well supported below 105.00 mark.
  • It made intraday high at 105.40 and low at 104.90 mark.
  • A day Chart and H1 chart with triple EMA suggest down trend for the time being.
  • Immediate hurdles are seen at 105.45 to 104.91 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 recovers sharply from previous losses and hovers around key resistance at $1,792 mark.
  • The pair made intraday high at $1,792 and Low at $1,782 mark.
  • A day chart and H1 chart with triple EMA suggest bullish trend for the time being.
  • A sustained close above $1,792 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,782 on H1 chart will test further supports.
Supports
Resistances
$1,782
$1,792
$1,776
$1,798
$1,770
$1,804
$1,766
$1,809
$1,760
$1,814
$1,756
$1,820

 
Key Headlines for the FX market:

  • As many Chinese embraced new freedoms after the country dropped key parts of its tough zero-COVID regime, there was mounting concern that the virus could soon run wild.
  • Saudi Crown Prince Mohammed bin Salman received President Xi Jinping as the Chinese leader heralded “a new era” in Arab relations, with a lavish welcome signaling Riyadh’s interest in deepening ties with Beijing despite U.S. wariness.
  • Russian forces are pressing forward with air and ground attacks on several settlements in eastern Ukraine, officials said, a day after Russian President Vladimir Putin celebrated seizing territory during the nine-month war.
  • Peru swore in a new president after a day of political drama that saw leftist leader Pedro Castillo arrested after his ousting from office in an impeachment trial following his last-ditch bid to cling to power by dissolving Congress.
  • Republicans blamed their loss in Georgia’s U.S. Senate runoff election on several factors directly tied to former President Donald Trump, beginning with the scandal-plagued celebrity he chose as their candidate.
  • World stocks and oil prices battled to pull out of a four-day slide as deeply inverted bond yield curves and choppy currency markets underscored the simmering concerns among investors about economic stagnation next year.
  • The movement of people into and out of the U.S. labor force, a complex flow typically involving more than 12 million people monthly, has shifted against the U.S. Federal Reserve’s hope that a rising supply of workers will help cool inflation.

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