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Global markets ended last week on mixed after Jan US job market numbers exceeded market forecasts that fuelled expectations that the US Fed will continue to raise interest rates aggressively to combat inflation. Total nonfarm payroll employment increased by 517,000 in January, and the unemployment rate edged down to 3.4 percent. Economists had estimated that 185,000 jobs were added last month.
Moving ahead, this week Investors and traders should shift their emphasis from economic data to the Q4 earnings season and the latest comments from the FED policymakers after the release of strong US jobs data last week. On the other hand, the important economic events to watch are the series of inflation numbers from China and Germany, the RBA decision and the UK GDP.
On the earnings front, the companies scheduled to release their last quarter financial results this week will be Walt Disney, Uber, Lyft, PayPal and Pinterest.
GOLD
The precious metal plunged almost $100 in the last two trading sessions. Gold price extended losses on Friday after a stronger-than-expected US jobs report that fueled the bets that the Fed continue to raise rates, which diminishes the appeal of assets that bear no interest. The dollar’s advance has also pressured the metal's weakness. This week, gold investors largely focused on Federal Reserve Chair Jerome Powell's speech for insights into the central bank's rate hike path.
For this week, $1,858 is the immediate support level, followed by $1,850. If the metal breaks below the $1,850, the slump will quickly extend toward the $1840/35 mark. On the upper side, gold is likely to find immediate resistance at $1,874 then $1880, any break above the $1,880 level could lead the prices of the precious metal towards the next resistance levels of $1,886 and $1,895.
DOLLAR INDEX
The U.S. dollar has appreciated against most currencies last week—the dollar index rose to its highest level in three weeks. The greenback rebounded on bets that strong economic data may prompt bigger interest rate hikes by the Federal Reserve. For the dollar, no major data is expected on the economic calendar this week, although US Michigan consumer sentiment is scheduled later this week will be important to watch.
The technical scenario is absolutely bullish after last week's bullish sentiment. While considering the recently bullish momentum the USD may find strong resistance this week above 103.50. On the downside, any meaningful pullback now seems to find some support near the 102.40 zones, below which the slide could further get extended towards the 102.20/00 regions.
EURUSD
EURUSD failed to extend the rally above 1.1000 and retreat back to below 1.0800 despite the European Central Bank's promises of another interest rate hike in March. ECB President Christine Lagarde said - "In view of the underlying inflation pressures, we intend to raise interest rates by another 50 basis points at our next monetary policy meeting in March and we will then evaluate the subsequent path of our monetary policy." The next monthly update on German inflation arrives on Thursday. That's the next piece of major economic news that could alter the ECB's thinking on interest rates.
From a technical perspective, The 1.0760 area of confluence has recently been held as a firm support, failure to defend the mentioned support levels has the potential to drag the pair further towards the 1.0730 and 1.0710 support zone. On the upper side, in case the pair manages to settle above 1.0850, it will regain upside momentum and head towards the next resistance level at 1.0900 and 1.0930.
DOW JONES
US equities ended mixed following the release of the most awaited robust US employment report and weaker-than-expected big tech's fourth-quarter earnings results. Alphabet, Amazon and Apple have reported lower-than-expected earnings for the December quarter, dragged down by dwindling digital advertising revenues. This week, the Dow traders will now turn their attention to the comments from FED policymakers and Q4 earnings results.
This week, the key resistance for Dow near 34,400 breaks this and closes above this resistance level then expects the market to zoom up to 34,800 and 35,000. On the downside, 33,500 will act as an initial cushion, any break below this area will open doors to 33,100 and 32,900.
Check out the original article with charts here - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-66
Moving ahead, this week Investors and traders should shift their emphasis from economic data to the Q4 earnings season and the latest comments from the FED policymakers after the release of strong US jobs data last week. On the other hand, the important economic events to watch are the series of inflation numbers from China and Germany, the RBA decision and the UK GDP.
On the earnings front, the companies scheduled to release their last quarter financial results this week will be Walt Disney, Uber, Lyft, PayPal and Pinterest.
GOLD
The precious metal plunged almost $100 in the last two trading sessions. Gold price extended losses on Friday after a stronger-than-expected US jobs report that fueled the bets that the Fed continue to raise rates, which diminishes the appeal of assets that bear no interest. The dollar’s advance has also pressured the metal's weakness. This week, gold investors largely focused on Federal Reserve Chair Jerome Powell's speech for insights into the central bank's rate hike path.
For this week, $1,858 is the immediate support level, followed by $1,850. If the metal breaks below the $1,850, the slump will quickly extend toward the $1840/35 mark. On the upper side, gold is likely to find immediate resistance at $1,874 then $1880, any break above the $1,880 level could lead the prices of the precious metal towards the next resistance levels of $1,886 and $1,895.
DOLLAR INDEX
The U.S. dollar has appreciated against most currencies last week—the dollar index rose to its highest level in three weeks. The greenback rebounded on bets that strong economic data may prompt bigger interest rate hikes by the Federal Reserve. For the dollar, no major data is expected on the economic calendar this week, although US Michigan consumer sentiment is scheduled later this week will be important to watch.
The technical scenario is absolutely bullish after last week's bullish sentiment. While considering the recently bullish momentum the USD may find strong resistance this week above 103.50. On the downside, any meaningful pullback now seems to find some support near the 102.40 zones, below which the slide could further get extended towards the 102.20/00 regions.
EURUSD
EURUSD failed to extend the rally above 1.1000 and retreat back to below 1.0800 despite the European Central Bank's promises of another interest rate hike in March. ECB President Christine Lagarde said - "In view of the underlying inflation pressures, we intend to raise interest rates by another 50 basis points at our next monetary policy meeting in March and we will then evaluate the subsequent path of our monetary policy." The next monthly update on German inflation arrives on Thursday. That's the next piece of major economic news that could alter the ECB's thinking on interest rates.
From a technical perspective, The 1.0760 area of confluence has recently been held as a firm support, failure to defend the mentioned support levels has the potential to drag the pair further towards the 1.0730 and 1.0710 support zone. On the upper side, in case the pair manages to settle above 1.0850, it will regain upside momentum and head towards the next resistance level at 1.0900 and 1.0930.
DOW JONES
US equities ended mixed following the release of the most awaited robust US employment report and weaker-than-expected big tech's fourth-quarter earnings results. Alphabet, Amazon and Apple have reported lower-than-expected earnings for the December quarter, dragged down by dwindling digital advertising revenues. This week, the Dow traders will now turn their attention to the comments from FED policymakers and Q4 earnings results.
This week, the key resistance for Dow near 34,400 breaks this and closes above this resistance level then expects the market to zoom up to 34,800 and 35,000. On the downside, 33,500 will act as an initial cushion, any break below this area will open doors to 33,100 and 32,900.
Check out the original article with charts here - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-66