Tuesday Briefing: From DXY, Gold to Latest FX Headlines; Dec 06, 2022

US Dollar Index Overview

  • DXY moves in rigid boundaries and stabilizes around 104.50 mark.
  • It made intraday high at 105.49 and low at 105.17 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 enjoys roller coaster movement and currently stabilizes above $1,770 mark.
  • The pair made intraday high at $1,780 and Low at $1,767 mark.
  • A day chart is up and H1 chart with triple EMA suggests bearish trend for the time being.
  • A sustained close above $1,782 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,770 on H1 chart will test further supports.
Supports
Resistances
$1,770
$1,782
$1,765
$1,787
$1,761
$1,792
$1,756
$1,798
$1,752
$1,804

 
Key Headlines for the FX market:

  • U.S. stock index futures were subdued on Tuesday following a selloff on Wall Street on fears of protracted Federal Reserve action to combat inflation, while focus shifted to Georgia runoff election, which might decide the fate of the U.S. Senate.
  • Countries are gathering for a key U.N. nature conference in Montreal, known as COP15, aiming to set new global targets to protect what’s left of Earth’s wildlife and natural spaces. More than 10,000 participants are expected to attend the summit over the next two weeks
  • A drone attack on an airfield in Russia’s Kursk region set fire to an oil storage tank a day after Moscow accused Ukraine of audacious drone attacks on two air bases deep into Russian territory.
  • People in China’s capital Beijing were allowed to enter parks, supermarkets, offices and airports without showing proof of a negative COVID-19 test. “Beijing readies itself for life again” read a headline in the government-owned China Daily newspaper.
  • Goldman Sachs plans to spend tens of millions of dollars to buy or invest in crypto companies, showing a willingness to keep investing even after the collapse of the FTX exchange.
  • U.S. President Joe Biden will visit the Arizona plant of TSMC as the Taiwanese chipmaker is set to more than triple its planned investment in the factory to $40 billion, among the largest foreign investments in U.S. history.
  • Brazilian digital bank Nubank , Latin America’s largest fintech, announced on Tuesday a $330 million equity capitalization in Mexico, as it pushes to expand operations there.
  • Euro zone inflation may have peaked but will subside so slowly that it could be years before it gets back to the European Central Bank’s 2% target, keeping pressure on the ECB to tighten policy well into 2023.

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