23 August 2022 – Dollar to New Highs; Euro at 20 Years Low

U.S. Dollar Index (USDX)

The dollar held firm on Tuesday as a safe haven during the turbulence of the uncertainty. Furthermore, the U.S. dollar index stood firm around 109, attempting to breach the two-decade high of 109.29 it hit in July. Another reason investors have pursued refuge in dollars is the growing risk of a hawkish statement from the Fed’s Jackson Hole symposium, flagged by several officials last week.

Technically, the index remains holding the momentum towards the new high finding support above 108.80 at the time of writing the report. Meanwhile, Fibonacci retracement shows the support too far from the current levels on the hourly chart at 107.40. However, the price action shows a support at 108.80 and 108.40. Also, technical indicators show a possibility of a drop due to the emotional resistance the index is facing at 109.20.

PIVOT POINT: 109.00

SUPPORT	RESISTANCE
108.80	109.20
108.40	109.80
108.00	110.10

Euro (EURUSD)

The euro declined around a two-decade low as Europe confronts energy supply and broader economic growth concerns. The European currency touched its lowest since late 2002 of $0.9926 overnight and was last barely higher at $0.9941.

Russia will suspend natural gas supplies to Europe via the Nord Stream 1 pipeline for three days at the end of the month. Meanwhile, heatwaves have already put pressure on energy supplies and worries are growing that any turmoil during winter could be troublesome for business activity.

The European currency remains weak despite the early bounce from 0.9902 to 0.9949 and finding a resistance at 0.9935. Technical indicators show a possibility for continuation of the downtrend regardless the RSI neutral level at the hourly chart. Meanwhile, the daily chart confirms the decline and remains pressuring the current levels towards 0.9850.

PIVOT POINT: 0.9930

SUPPORT	RESISTANCE
0.9900	0.9950
0.9880	0.9990
0.9850	1.0010

Spot Gold (XAUUSD)

Gold prices held levels after seven straight sessions of losses but remained under pressure as growing expectations of a hawkish Federal Reserve boosted the dollar and treasury yields. However, spot gold held near $1,738.62 an ounce, while gold futures slightly rose 0.2% to $1,751.55 an ounce.

Spot gold remains negative on both the daily and hourly time frames, but it shows a horizontal trend on the hourly chart. Meanwhile, the daily chart shows sharper and clearer downtrend targeting the levels near $1,700 per ounce.

PIVOT POINT: 1,735

SUPPORT	RESISTANCE
1,723	1,740
1,715	1,748
1,706	1,756

West Texas Crude (USOUSD)

Oil rose on Tuesday as renewed concerns over tight supply dominated market sentiment after Saudi Arabia warned that the major oil producer could cut output to correct a recent oil price decline. Brent crude futures advanced 1% to $97.41 a barrel, while WTI gained 1% to $91.26 a barrel.

Spot oil headed up after the hammer candle formed at 9:00 am (GMT+3) this morning heading from $90 per barrel towards 91.90. However, the hourly chart shows a possibility of further advance towards 92.25 before the continuation of the downtrend.

PIVOT POINT: 91.80

SUPPORT	RESISTANCE
90.70	92.25
89.90	93.00
89.20	92.80