Tuesday Briefing: From DXY, Gold to Latest FX Headlines; Oct 04, 2022

US Dollar Index Overview

  • DXY falls sharply on Tuesday and slips back below 111.00 mark.
  • It made intraday high at 111.88 and low at 110.88 mark.
  • A day Chart is up and H1 chart with triple EMA suggests down trend for the time being.
  • Immediate hurdles are seen at 111.83 to 110.81 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 extremely from previous losses and hits highest level since Sept 1, 2022.
  • The pair made intraday high at $1,713 and Low at $1,695 mark.
  • A day chart is down and H1 chart with triple EMA suggests up trend for the time being.
  • A sustained close above $1,674 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,658 on H1 chart will test further supports.
Supports
Resistances
$1,698
$1,714
$1,692
$1,718
$1,686
$1,724
$1,680
$1,730
$1,674
$1,736

 
Key Headlines for the FX market:

  • Global stocks climbed for a second day, after Britain’s decision to ditch part of a controversial tax-cut plan and slightly paler expectations for aggressive central bank action returned some confidence to investors.
  • British Prime Minister Liz Truss has refused to rule out cutting benefit payments by less than soaring inflation to help fund her tax-cutting growth plan in what is likely to spark the next political rebellion over her economic plans.
  • Nuclear-armed North Korea test-fired a ballistic missile further than ever before, sending it soaring over Japan, for the first time in five years, and prompting a warning for residents there to take cover. In response to the test, U.S. and South Korean warplanes practised bombing a target in the Yellow Sea.
  • Lawyers for Saudi Arabian Crown Prince Mohammed bin Salman, facing a U.S. lawsuit over the 2018 killing of Saudi journalist Jamal Khashoggi, told a court the crown prince’s appointment as prime minister last week ensured him immunity from prosecution.
  • The first round of Brazil’s presidential election has come and gone with no final victor, but some big losers have emerged: opinion pollsters.
  • Ukrainian forces have broken through Russian defenses in the south of the country while expanding their rapid offensive in the east, seizing back more territory in areas annexed by Russia and threatening its troops’ supply lines.

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