Demand for conventional safe havens rose after Russia shut a major gas pipeline to Europe, putting the continent at risk of a major energy crisis. Focus is now on a European Central Bank meeting later in the week, where market participants expect the bank to begin raising interest rates.
U.S. Dollar Index (USDX)
the U.S. dollar index rally appears to have paused, as market participants await more details on the path of U.S. monetary policy. However, expectations of more interest rate hikes by the Federal Reserve kept the dollar underpinned around 20-year highs. Rising interest rates have weighed heavily on gold prices this year, as traders sought better yields from the dollar and Treasuries. The Fed is also broadly expected to maintain its pace of rate hikes this month.
The overall trend remains positive heading to exceeding the current high levels. However, the momentum slowed which might lead prices to decline below 109.70. Bollinger bands show resistance at 110.40 and possible support at 109.35.
Pivot Point: 109.50
| SUPPORT | RESISTANCE |
| 109.40 | 110.00 |
| 109.30 | 110.20 |
| 109.30 | 110.40 |
Euro (EURUSD)
Demand for conventional safe havens rose after Russia shut a major gas pipeline to Europe, putting the continent at risk of a major energy crisis. The euro slumped to new 20-year lows this week, given that the crisis is expected to severely impact economic growth in the eurozone. Focus is now on a European Central Bank meeting later in the week, where market participants expect the bank to begin raising interest rates.
Technically, the pair remains under selling pressure below the parity levels towards new lows. Technical indicators signal a possibility of further decline towards 0.9810. Meanwhile, Fibonacci retracement shows resistance at 0.9975 and 0.9985 on the hourly chart indicating a possible decline.
Pivot Point: 0.9920
| SUPPORT | RESISTANCE |
| 0.9910 | 0.9940 |
| 0.9870 | 0.9970 |
| 0.9810 | 1.0005 |
Spot Gold (XAUUSD)
Gold prices recovered sharply from a six-week low on Tuesday as a worsening energy crisis in Europe drove up safe-haven demand, while copper extended gains on expectations of more Chinese stimulus measures. Spot gold jumped 0.5% to $1,718.95 an ounce, while gold futures were up 0.5% at $1,730.0.
The yellow metal trend remains negative after finding the resistance between 1,705 and 1,710 on the hourly chart. Technical indicators show a possibility of a horizontal movement between 1,700 and 1,710 before breaking into new short-term lows.
Pivot Point: 1,715
| SUPPORT | RESISTANCE |
| 1,700 | 1,720 |
| 1,685 | 1,726 |
| 1,680 | 1,740 |
West Texas Crude (USOUSD)
Both WTI and Brent crudes swung on Tuesday after the OPEC+ said it will trim production levels to offset a drop in prices amid fears of slowing demand and economic growth. Brent Oil Futures fell 0.1% to $95.12 a barrel, while U.S. West Texas Intermediate futures jumped 2.2% to $88.75 a barrel.
However, OPEC+ agreed during the meeting on Monday that it will cut output by 100,000 barrels per day (bpd) for October – roughly 0.1% of global demand.
Technically, WTI prices continue to decline to $86 per barrel after breaking the support at $88.25. technical indicators show the downtrend slowing down without any signs of a rebound.
Pivot Point: 88.50
| SUPPORT | RESISTANCE |
| 86.90 | 89.30 |
| 86.15 | 90.10 |
| 85.00 | 90.90 |
