Wednesday Briefing: From DXY, Gold to Latest FX Headlines; Dec 07, 2022

US Dollar Index Overview

  • DXY depreciates ahead of U.S. session and remains well supported below 105.50 mark.
  • It made intraday high at 105.82 and low at 105.20 mark.
  • A day Chart is down and H1 chart with triple EMA suggests up trend for the time being.
  • Immediate hurdles are seen at 105.77 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 moves in rigid boundaries on Wednesday as no key economic indicator is scheduled from the U.S.
  • The pair made intraday high at $1,775 and Low at $1,769 mark.
  • A day chart is up and H1 chart with triple EMA suggests bearish trend for the time being.
  • A sustained close above $1,778 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
$1,778
$1,765
$1,782
$1,761
$1,787
$1,756
$1,792
$1,752
$1,798
$1,747
$1,804

 
Key Headlines for the FX market:

  • Oil steadies after falling close to 2022 lows.
  • Taiwan’s economy minister said on Wednesday that the island remains chipmaker TSMC’s most important production base after the company announced it would more than triple planned investment at its new Arizona plant to $40 billion.
  • The European Union reached a deal in the early hours of Wednesday on a law to increase the price that airlines have to pay when they emit planet-heating carbon dioxide emissions, adding pressure to the sector to shift away from fossil fuels.
  • China’s exports and imports shrank at their steepest pace in at least 2-1/2 years in November, as feeble global and domestic demand, COVID-led production disruptions and a property slump at home piled pressure on the world’s second-biggest economy.
  • U.S. FDA grants priority review to Pfizer’s RSV vaccine.
  • India urges global companies to help build fertiliser storage.
  • China announced the most sweeping changes to its tough anti-COVID regime since the pandemic began three years ago, loosening rules that curbed the spread of the virus but had hobbled the world’s second largest economy and sparked protests.
  • India’s central bank raised its key policy rate by 35 basis points to 6.25%, the highest in over three years and its fifth straight increase, while the Bank of Canada is expected to hike its benchmark overnight rate to its highest level in 14 years.

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