During the last week, the global stocks and commodities ended mostly in negative territory driven by the mixed US jobs report and rising concerns about the latest COVID-19 variant Omicron. The Fridays US jobs report showed the US employers added 210,000 jobs, compared to the market expectation of 550,000 while the unemployment rate fell sharply to 4.2% from 4.6%. This week Omicron news and the high inflation fears will dominate the market sentiment once again.
On the earnings front, the companies due to release their results will be the video game retailer GameStop (NYSE: GAME) and the pet e-commerce company Chewy (NYSE: CHWY) will be among those reporting earnings this week.
GOLD
The safe-haven metal ended slightly higher on Friday boosted by a weaker-than-expected US employment report. The metal was up on Monday morning in Asia, with investors turning to safe-haven assets as concerns over the impact of COVID-19 outbreaks involving the new variant on economic recovery remain.
For this week, $1760 remains the key support area to watch, any break below this level will open $1750/45 minimum. On the flip side, the bullish breakout of $1795 is likely to push the metal into a new trading zone, which may offer further buying opportunities until $1815/20.
DOLLAR INDEX
The greenback has closed almost flat on the weekly basis but the Index has remained in favour as the dollar became safe haven again for international investors. However, the US rate expectations have firmed after the recent hawkish comments from FED chair Powell and this will be supporting the dollar ahead of the FOMC meeting later this month.
This week, the key resistance is located for the index around 96.50, a break above this level will confirm a possible move to 96.65/96.95. On the downside, any meaningful pullback now seems to find some support near the 95.90 zones, below which the slide could further get extended towards the 95.75/50 region.
EURUSD
The currency pair closed below 1.13 last week after the US dollar recovered some of the previous session losses. On the other hand, the German Government imposed a lockdown on people who are not vaccinated against coronavirus. In the coming week, again the trend of the euro would largely depend on the trend of the dollar index.
For this week, the key support area is around 1.1250. On the upper side, the short-term resistance at 1.1340 any break above this level will open 1.1360 then 1.1380/1.1410. On the other side, if the price break and close below 1.1250, the next immediate support is to watch 1.1230/00.
DOW JONES
Dow Jones ended sharply lower last week as investors worried that the high number of coronavirus delta variant cases may be slowing economic recovery. Dow Jones recovered part of its loss on Thursday after showing steep weakness in the first few days of last week, helped by positive comments from US president Joe Biden. Meanwhile, on Friday the index reversed from the early gains following the release of weak NFP data.
For Dow this week, the first nearest support level is located at 33,950. In case if it breaks below this level, it will head towards the next support level which is located at near 33,800 then 34,520. On the upside, 35,030 will act as an immediate and strong hurdle while 35,350 will be a critical resistance zone because above this, bulls are likely to dominate.
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