Wednesday Briefing: From DXY, Gold to Latest FX Headlines; March 29, 2023

US Dollar Index Overview

• DXY trades in narrow range and remains well supported above 102.50 mark.
• It made intraday high at 102.73 and low at 102.39 mark.
• A day Chart and H1 chart with triple EMA suggest down trend for the time being.
• Immediate hurdles are seen at 102.96 to 102.40 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 and consolidates around key resistance at $1,967 mark.
• The pair made intraday high at $1,971 and Low at $1,958 mark.
• A day chart and H1 chart with triple EMA suggest up trend for the time being.
• A sustained close above $1,974 on H1 chart requires for the upside rally.
• Alternatively, a consistent close below $1,962 on H1 chart will test further supports.

 
Key Headlines for the FX market:

• Ukraine struck a railway depot and knocked out power in the Russian-occupied city of Melitopol, deep behind the front line, amid growing talk from Kyiv of a counterassault against Russian forces worn out by a failed winter offensive. Here’s the latest on the war.
• Russian forces are relentless in their attempts to capture the bombed-out eastern towns of Bakhmut and Avdiivka but were not making progress, Ukraine’s military said, while a pro-Moscow official said the Russians are advancing.
• External pressure will not stop Taiwan engaging with the world, President Tsai Ing-wen said as she left for the United States, hitting a defiant note after China threatened retaliation if she met House Speaker Kevin McCarthy.
• In Europe, King Charles travels to Germany in his first state visit abroad since becoming British monarch, as part of efforts to turn the page on years of rocky relations between Britain and the European Union after its exit from the bloc.
• U.S. Vice President Kamala Harris arrives in Tanzania, the second stop of a three-nation tour of the continent. The visit is part of a diplomatic push by the Biden administration to deepen ties with the continent amid competition from China and Russia. Her first stop was Ghana.

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