Tuesday Briefing: From DXY, Gold to Latest FX Headlines; Sept 20, 2022

US Dollar Index Overview

  • The DXY strengthens on Tuesday ahead of U.S. FOMC meeting and stabilizes above 110.00 mark.
  • It made intraday high at 110.28 and low at 109.35 mark.
  • A day Chart and H1 chart with triple EMA up down trend for the time being.
  • Immediate hurdles are seen at 110.30 to 109.50 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 ahead of U.S. FOMC meeting due tomorrow and stabilizes below $1,670 mark.
  • The pair made intraday high at $1,679 and Low at $1,665 mark.
  • A day chart and H1 chart with triple EMA suggest down trend for the time being.
  • A sustained close above $1,678 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,658 on H1 chart will test further supports.

Key Headlines for the FX market:

  • Ukraine said its troops have marched farther east into territory recently abandoned by Russia, paving the way for a potential assault on Moscow’s occupation forces in the Donbas region as Kyiv seeks more Western arms.
  • One of Russian President Vladimir Putin’s top allies said he favored holding referendums in two eastern Ukrainian regions in order to formally make them part of Russia, a move that would seriously escalate Moscow’s confrontation with the West.
  • An outbreak of Ebola has been declared in Uganda after health authorities confirmed a case of the relatively rare Sudan strain, the health ministry and World Health Organization said.
  • PepsiCo has stopped making Pepsi, 7UP and Mountain Dew in Russia nearly six months after the U.S. company said it would suspend sales and production after Moscow sent tens of thousands of troops into Ukraine.
  • Oil prices ticked up as OPEC and its allies keep producing less than their quotas, but were headed for a fourth monthly decline ahead of an expected further U.S. interest rate hike which may curb economic growth and fuel demand.
  • China’s crude oil imports from Russia in August surged 28% from a year earlier, official data showed on Tuesday, but it handed back its top supplier ranking to Saudi Arabia for the first time in four months.

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