Tuesday Briefing: From DXY, Gold to Latest FX Headlines; March 26, 2024

US Dollar Index Overview

• DXY remains almost unchanged after U.S. key economic data and consolidates around 104.12 mark.
• It made intraday high at 104.47 and low at 104.01 mark.
• A day Chart and H1 chart with triple EMA suggest downside movement for the time being.
• Immediate hurdles are seen at 104.58 to 103.84 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 weakens sharply after key U.S. economic results and slips back below $2,180 mark.
• The pair made intraday high at $2,200 and Low at $2,167 mark.
• A day chart is up and H1 chart with triple EMA suggests down trend for the time being.
• A sustained close above $2,184 on H1 chart requires for the downside rally.
• Alternatively, a consistent close below $2,174 on H1 chart will test further supports.

Key Headlines for the FX market:

• U.S. Core Durable Goods Orders stand at 0.5 pct vs -0.4 pct previous release.
• U.S. CB Consumer Confidence Stands at 104.7 vs 104.8 previous release.
• Relations between Biden and Prime Minister Benjamin Netanyahu sank to a wartime low with the US allowing passage of a Gaza ceasefire resolution at the United Nations.
• Russia’s security state has been ruthlessly effective at detaining Vladimir Putin’s opponents but was caught off guard by a mass shooting near Moscow, raising questions about its priorities, resources and intelligence gathering.
• The war in Ukraine has been characterized by drone deployment of unprecedented scale. For this graphic, Reuters analyzed more than 50 videos of drone attacks, collated research and spoke to over a dozen manufacturers, soldiers and officials.
• Police in the Indian capital detained dozens of opposition supporters as they attempted to march to Prime Minister Narendra Modi’s residence to protest against last week’s arrest of Delhi Chief Minister Arvind Kejriwal.
• The New Zealand government said it had raised concerns with the Chinese government about its involvement in a state-sponsored cyber hack on New Zealand’s parliament in 2021, which was uncovered by the country’s intelligence services.
• The Bank of Japan has ditched its dovish forward guidance in favor of a more “data-dependent” approach to policy deliberations after ending negative rates, sources say, keeping the door open for another near-term hike in borrowing costs.

Keep an eye open for the latest news and fundamentals affecting the FX markets.
Take a look and do trade wisely!

Good Luck