Tuesday Briefing: From DXY, Gold to Latest FX Headlines; May 30, 2023

US Dollar Index Overview

  • DXY moves in rigid boundaries despite solid U.S. Key Fundamentals and stabilizes above 104.00 mark.
  • It made intraday high at 104.53 and low at 103.87 mark.
  • A day Chart and H1 chart with triple EMA suggest up trend for the time being.
  • Immediate hurdles are seen at 103.76 to 104.50 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 but managed to remain supported above $1,932 mark.
  • The pair made intraday high at $1,962 and Low at $1,932 mark.
  • A day chart and H1 chart with triple EMA suggest up trend for the time being.
  • A sustained close above $1,962 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,942 on H1 chart will test further supports.

Key Headlines for the FX market:

  • Drones hit several buildings in Moscow while Russia launched another wave of flying bombs on Kyiv, NATO peacekeeping soldiers were injured in clashes with Serb protesters, and as life in China returns to normal, hawkers are hitting the streets.
  • Drones hit several buildings in Moscow causing minor damage and forcing some people to evacuate their homes, Russian officials said. Moscow launched another wave of flying bombs on the Ukrainian capital Kyiv killing one person.
  • Around 25 NATO peacekeeping soldiers defending three town halls in northern Kosovo were injured in clashes with Serb protesters, while Serbia’s president put the army on the highest level of combat alert. KFOR, the NATO-led peacekeeping mission to Kosovo, condemned the violence.
  • US President Joe Biden said Turkish President Tayyip Erdogan in a call repeated Ankara’s desire to buy F-16 fighter jets from the US. Biden told him Washington wanted Ankara to drop its objection to Sweden’s joining NATO.
  • India’s monsoon rains advanced into some more parts of southwest Bay of Bengal after stalling for the past 11 days at a far-flung island, the weather department said. The monsoon, the lifeblood of the country’s $3 trillion economy, delivers nearly 70% of the rain that India needs.
  • Oil fell, giving up earlier gains, as concerns about the viability of the US debt ceiling pact cooled the market’s risk-on sentiment and mixed messages from major producers clouded the supply outlook ahead of their meeting this weekend.
  • Top US and European Union officials meet in Sweden to weigh how best to deal with China and cooperate on artificial intelligence and other future technology as well as EU complaints about Trump-era tariffs and US green subsidies.
  • Bitcoin prices on the Australian arm of Binance, the world’s largest crypto-currency exchange, were almost A$9,000 lower than prices on rival exchanges on Tuesday, in a sign customers were seeking to exit their positions quickly.

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

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