Tuesday Briefing: From DXY, Gold to Latest FX headlines; Feb 07, 2023

US Dollar Index Overview

• DXY strengthens on Tuesday on robust U.S. Trade balance data and pair is currently hovers around 104.00 mark.
• It made intraday high at 103.96 and low at 103.39 mark.
• A day Chart and H1 chart with triple EMA suggest up trend for the time being.
• Immediate hurdles are seen at 103.90 to 103.38 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 remains almost unchanged despite higher than expected U.S. Trade balance data and hovers around $1,870 mark.
• The pair made intraday high at $1,878 and Low at $1,865 mark.
• A day chart is up and H1 chart with triple EMA suggests down trend for the time being.
• A sustained close above $1,878 on H1 chart requires for the upside rally.
• Alternatively, a consistent close below $1,864 on H1 chart will test further supports.

 
Key Headlines for the FX market:

• The magnitude 7.8 quake – the deadliest in Turkey since 1999 – hit early yesterday and was followed by a second hours later.
• The earthquake aftermath looked painfully familiar for Syrian families and rescuers worn down by nearly 12 years of bombardment and displacement. Air strikes and shelling have already traumatized the population and weakened the foundations of many buildings.
• The flow of critical U.N. aid from Turkey to northwest Syria has temporarily halted due to damage to roads and other logistical issues.
• Ukraine said the last 24 hours were the deadliest of the war so far for Russian troops, as Moscow hurls tens of thousands of freshly mobilized soldiers and mercenaries into relentless winter assaults in the east
• The U.S. Coast Guard imposed a temporary security zone in waters off South Carolina during the military’s search for debris from a suspected Chinese spy balloon shot down by a U.S. fighter jet, and the White House said it would keep a calm approach to relations with Beijing.
• President Joe Biden will today deliver his State of the Union address three months after Republicans took control of the House of Representatives, a speech that may mark the unofficial start of the 2024 presidential campaign season.
• Google owner Alphabet said it will launch “Bard”, a chatbot service, and more artificial intelligence for its search engine as well as developers.
• North Korea stole more cryptocurrency assets in 2022 than in any other year and targeted the networks of foreign aerospace and defense companies, according to a currently confidential United Nations report seen by Reuters.

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