Daily Market Report by GulfBrokers 2020-2021

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European shares and Euro reversed from the early gains ahead of European Central Bank (ECB) President Christine Lagarde's speech later in the day. Lagarde's speech will be closely watched for clues on the future of monetary policies and interest rates in the eurozone. Lagarde is expected to signal that the ECB will slow the pace of its interest rate after the latest economic data showed November's eurozone annual inflation of 10% was down from 10.6% in October.

EQUITIES

Asian stock markets slipped on Thursday as investors and market participants anticipate surging rates will trigger a much sooner and possibly more severe global recession. Meanwhile, the US stock futures trade flat. Moving ahead, Investors will shift their attention today to corporate earnings with some of the biggest U.S. companies reporting their earnings,

On the earnings front, Lululemon, Chewy and Costco are amongst those reporting the last quarter's financial results today.

OIL

Crude oil bears are firmly in control. On the macro side, US Dollar strength and poor manufacturing data were the main bearish factors impacting crude markets this week. On the other hand, the latest EIA data showed crude inventories fell by 5.187 million barrels last week.

CURRENCIES

In the currency market, the Canadian dollar remains one of the weakest currency pairs of the week. The USDJPY trades flat following the release of better-than-expected Japan Q3 GDP data. The data showed Japan's economy, the world's third largest, shrank less than initially estimated in the third quarter. On the other hand, the GBPUSD retreats back to below 1.2180.

GOLD

The safe-haven metal is struggling to firm to the upside due to aggressive Fed rate hike bets. Moving ahead to the North American session, gold traders should closely monitor the release of US jobless claims data.

Economic Outlook

On the data front, the Bank of Canada announced another 50bp rate hike on Wednesday, bringing it to 4.25 per cent and the highest it’s been since 2008. “We are resolute in our commitment to achieving the 2 percent inflation target and restoring price stability for Canadians,” the central bank said.

Coronavirus update:

Worldwide, more than 645 million people have been confirmed infected and more than 6.6 million have died. The United States has confirmed over 98.9 million cases and has had more than 1.08 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD:
For today the first support for the Euro appears to be around 1.0470, in the short-term any break below 1.0470 is the next downside level to watch 1.0440/30. On the other upper side, the immediate resistance is around 1.0550 any break and close above this level will open at 1.0580 and 1.0600.



The important levels to watch for today: Support- 1.0470 and 1.0430 Resistance- 1.0550 and 1.0580.

GOLD: The metal currently forming the head of a head & shoulders pattern. On the downside, 1772 is the immediate support level, followed by 1766. However, the bears need to see a confirmed break below the crucial support of 1760 for further downside. On the flip side, the critical resistance remains above 1794.



The important levels to watch for today: Support- 1772 and 1765 Resistance- 1790 and 1795.

Quote of the day - A trading philosophy is something that cannot just be transferred from one person to another; it’s something that you have to acquire yourself through time and effort - Richard Driehaus.

Read more - https://gulfbrokers.com/en/daily-market-report-586
 
US dollars remain under pressure while US stock futures were in the green ahead of key PPI data for November from the US — the world's largest economy — that may offer more clarity on whether inflationary pressures eased further in November. The Producer Price Index, which measures wholesale prices before goods and services reach consumers, October's PPI report will be published at 1330 GMT. During the Asian session on Friday, China released the latest PPI numbers, the data showed China’s producer price index fell 1.3% in November.

The outcome of the PPI is going to be really important for the Fed because strong PPI data likely put further pressure on the Federal Reserve to raise interest rates more aggressively in order to battle inflationary pressures.

EQUITIES

Asian shares traded higher on higher following the release of softer-than-expected Chinese inflation data. While the European and UK shares traded flat on Friday as investors and market participants awaited key monetary decisions from both the Bank of England and the European central bank next week.

OIL

Crude oil futures trade near the weekly lows on Friday Morning. The strong bearish sentiment is driven by fears of an economic slowdown, with both WTI and Brent contracts dropping almost 10 percent this week as expectations for a recession in the United States.

CURRENCIES


In the currency market, the EURUSD surged to a fresh weekly high of 1.0585 on Friday supported by robust eurozone economic data and the weak US dollar. However, considering the recent rebound in the British pound, the US dollar movement will continue to play a vital role in this currency pair's future direction. Meanwhile, the kiwi and the Aussie also eked out strong gains in early Asia trade against a softer dollar.

GOLD

The precious metal holding the previous session gains and remained in favour as a safe haven throughout the last few sessions. Moving ahead to the North American session, gold traders should closely monitor the release of the US producer price index data.

Economic Outlook

On the data front, China reports inflation data in line with expectations. China's consumer price index (CPI), a main gauge of inflation, rose 1.6 percent year on year in November, easing from October’s reading of 2.1%.

Moving ahead today, the important events to watch:

US – PPI: GMT – 13.30

US – Michigan consumer sentiment: GMT – 15.00

Coronavirus update:

Worldwide, more than 645 million people have been confirmed infected and more than 6.6 million have died. The United States has confirmed over 98.9 million cases and has had more than 1.08 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD:
For Euro, the resistance for the pair remains above 1.0610, and any break over targets 1.0640/50. On the other side, the immediate support is near 1.0540 and any break will drag the euro to 1.0500 and 1.0470 levels.



The important levels to watch for today: Support- 1.0540 and 1.0500 Resistance- 1.0610 and 1.0640.

GOLD: Gold price trades steady above $1790. If the bullish momentum continues the next upside levels to watch are $1798 and $1804. On the downside, any meaningful pullback now seems to find some support near the $1780 zones, below which the slide could further get extended towards the $1772/68 region.



The important levels to watch for today: Support- 1780 and 1772 Resistance- 1798 and 1804.

Quote of the day - “The core problem, however, is the need to fit markets into a style of trading rather than finding ways to trade that fit with market behaviour.” – Brett Steenbarger.

Read more - https://gulfbrokers.com/en/daily-market-report-587
 
The Federal Reserve holds its final meeting of the year this week and the FED officials will begin their two-day meeting on Tuesday. The central bank's latest policy statement will be released with fresh economic projections at 19:00 GMT on Wednesday. The central bank should also unveil new forecasts for interest rates, inflation, and the economy. Fed Chair Jerome Powell will hold a press conference following the meeting.

FED had an incredibly busy year in 2022​

The Federal Reserve's policy-making committee increased its benchmark interest rate by another 75bps on the 2nd of November 2022. The central bank raised the benchmark lending rate by 0.75% points four consecutive times in recent months. Fed is to keep hiking interest rates at its December meeting and may take a hard stance on fighting inflation through the next year as well.

However, Investors expect the Fed to slow down the rate hike from the December meeting. The market is pricing in a roughly 75% chance that the Fed will raise rates by 50 basis points. Soft inflation data also eased investors’ concerns about aggressive interest rate increases. The October inflation report came in lower than expected, indicating that inflationary pressures are easing. On the other hand, the latest FED meeting minutes showed that most Fed officials felt a slowing in interest rate increases would be appropriate.

Earlier this month, in a speech delivered at the Brookings Institution in Washington, D.C, Federal Reserve Chair Jerome Powell signaled that the central bank would slow its pace of rate hikes next month. “The time for moderating the pace of rate increases may come as soon as the December meeting.” – Powell said.

Meanwhile, recent U.S. data has shown that the Federal Reserve may need to continue an aggressive tightening path to stamp out inflation. Two latest reports released this month showed strong job growth and better-than-expected service sector activity.

Conclusion​

As we witnessed over the past few weeks, investors have been revisiting their portfolio’s asset allocation to balance the portfolio ahead of the final FED policy meeting of the year, especially after the Oil collapse.

We expect the US central bank is widely expected to announce a 50-basis point lift at its Dec 14 meeting. While investors should closely monitor the FED chair Powell's speech for clues about the Federal Open Market Committee's thoughts about slowing future increases.

Check out the original blog here - https://gulfbrokers.com/en/what-to-expect-from-the-final-fed-meeting-of-2022
 
A busy week is ahead for global markets. Meetings of major central banks with ECB, BOE and FOMC on the horizon return this week. However, all eyes are mainly on the US Federal Reserve bank this week as the US central bank is expected to provide a clear timeline related to its upcoming interest rate hikes. Markets have fully priced in a 50bp rate hike at this week's FED meeting,

On the other hand, the markets have a lot of economic data to digest this week which includes the US inflation data. The November CPI report is expected to show further signs that peak inflation is in place.

On the earnings front, the companies scheduled to release their last quarter financial results this week will be Accenture, Adobe and Oracle.

GOLD

The precious metal remains undecided as to which way its next directional break will be. The FED decision is the key release this week for gold. However, traders will also be watching the latest US inflation data which is set to be released on Tuesday. Technically, the medium-term trend remains supportive If the US dollar regains further upside strength this week on the back of further talk about an aggressive interest rate hike, we could see an extension to the weakness in the precious metals.



Technically the overall momentum remained bullish over the last few weeks. On the bullish side, this week the resistance stays above 1820, and a break above this exposes the index to the 1830/35 level. On the flip side, rejection and pullback from the 1820 resistance allow for a dip towards 1778 and with 1765/58 forming additional downside targets.

DOLLAR INDEX

The U.S. Dollar Currency Index, which tracks the greenback against six major currencies, ended slightly higher last week as investors anticipate the US central bank will continue to increase interest rates faster and further than other developed countries. However, the greenback failed to close above the 105 level. It seems to me that long dollar positions are being liquidated and short positions are being established in recent weeks.



This week, if the index stays above 104, then the next short-term resistance is located in the area of 105.40, a break above 105.40 will confirm a possible move to 106. On the downside, a breakdown through 104 would negate that bias and suggest a test of the 103.60 and 103.20 support regions.

EURUSD

EURO ended flat on Friday as investors grew more cautious ahead of a key European Central Bank meeting this week. The market participants anticipate the central bank will keep their monetary policy on hold at Thursday’s meeting. Beyond the ECB meeting, the focus will be on the Eurozone inflation and PMI readings due on Friday.



For this week, the first nearest support level is located at 1.0480. In case it breaks below this level, it will head towards the next support level which is located near 1.0440 then 1.0400. However, a fresh demand for the pair can be anticipated once the Euro rises above the 1.0600 resistance. A break above this level will confirm a possible move to 1.0660.

DOW JONES

Dow Jones started the new on a bearish note after the Index finished in negative territory on Friday as investors continued to bet on further Federal Reserve tightening to bring decades-high inflation under control. This week, Dow trader's focus will turn to the FED meeting on Wednesday, looking for clues on future rate hikes by the central bank.



Technically the overall momentum remains bearish. For this week, the key support level is located at 33,100/000. In case it breaks below this area, it will head towards the next support level which is located at nearly 32.600/500. On the flip side, the first resistance at 33,850/34,000 any break above this area will open 34,400/600 minimum.

Check out the detailed weekly analysis with charts - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-59
 
Shares of online pet products retailer Chewy (NYSE: CHWY) has been under the spotlight in the last 2 months after the stock bounced back strongly from its September lows. The stock dropped more than 35% in 2022 and reached a fresh 52-week low of $22 in September.

However, in the last few days, the stock remains undecided as to which way its next directional break will be. The stock gave up some ground last week despite the company releasing robust Q3 earnings results. Chewy released the financial results for the third quarter of 2022 on Dec. 8 after the market closed.

The third quarter results showed uplift signs of continued strong sales growth. The Q3 results beat Wall Street estimates and raised full-year guidance. Chewy reported sales of $2.53 billion, up 14.5% from a year ago. The stock initially dropped after the earnings announcement but later it recovered back to the weekly highs.

“Chewy’s third-quarter results showed accelerating double-digit topline growth, sustained gross margin expansion, and solid free cash flow generation. The fact that we are simultaneously driving top-line growth and expanding margins is yet another proof point of our ability to get big fast and get fit fast, regardless of the macro environment,” CHEWY CEO, Sumit Singh said.

$CHWY technical outlook​

The stock is set to bounce and rebound over the long term If the company fundamentals trend in a positive direction and overall market sentiment improves. Chewy stock has now formed a perfect double bottom and built a support zone at $22, and as long it can remain above this zone, we can expect further recoveries. On the downside side, the bears need to see a confirmed break below the crucial support $22/20 area to objectively tell us that the recovery has ended. And for the short term, the immediate support at $39.50 followed by $36.

Read the full article with the chart here - https://gulfbrokers.com/en/chewy-stock-has-formed-the-double-bottom-formation
 
Today, Investors and traders will closely monitor the release of November US inflation data, which is set to be released at 13.30 GMT. The consensus is that inflation will fall to 7.3% on an annual basis from October’s 7.7%.

The US dollar pairs remain the centre stage of attention ahead of the US CPI report. The dollar index, which tracks the U.S. currency against six major peers traded mixed on Tuesday morning, giving back some of the gains it made on Monday as investors looked ahead to inflation data for more clues about the Federal Reserve's next steps. The Federal Reserve will begin its final FOMC meeting for the year later today.

EQUITIES

US stock futures trade higher ahead of key inflation report. Meanwhile, UK shares were up for the second consecutive day after the latest data showed the UK economy grew more than anticipated in October. On the other hand, Asian shares traded with modest gains on Tuesday morning as China took more steps to soften Covid controls.

OIL

Crude oil futures extended the gains on Tuesday Morning after China’s ambassador to the US said the nation will continue relaxing its curbs, lifting demand hopes in the world’s top oil importer. A stronger dollar has also been pressuring oil prices lately. The greenback weakened slightly Tuesday, helping send prices higher.

CURRENCIES

In the currency market, the GBPUSD reversed from the early highs following the release of the UK employment report. The UK jobs data showed the UK unemployment rate edged higher to 3.7% from 3.6%. The Canadian dollar regained momentum against the US dollar and euro as crude oil prices recovered from the steep selloff.

GOLD

The precious metal traded flat following the previous session's fall as investors looked ahead to US inflation data for more clues about the Federal Reserve’s next steps. For today, the main drivers for the metal remain the US dollar and bond yields movement, and the US CPI data.

Economic Outlook

On the data front, the UK’s gross domestic product increased by 0.5% in October 2022, following a 0.6% slip in September. While Manufacturing output in the UK unexpectedly increased by 0.7 percent month-over-month in October 2022, compared with market forecasts.

Coronavirus update:

Worldwide, more than 649 million people have been confirmed infected and more than 6.65 million have died. The United States has confirmed over 99 million cases and has had more than 1.08 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD:
For today, the pair is supported at the 1.0500 level, any break below this level will open the doors to 1.0470/50. On the flip side, if the euro breaks above 1.0590 it would open doors towards the next resistance area of 1.0620/40.



The important levels to watch for today: Support- 1.0500 and 1.0470 Resistance- 1.0570 and 1.0610.

GOLD: For today, 1795 remains the key resistance to watch. On the downside, rejection, and pullback from the 1795 resistance allow for a dip towards 1775, with 1768 and 1765 forming additional downside targets.



The important levels to watch for today: Support- 1775 and 1765 Resistance- 1788 and 1795.

Quote of the day - “As time goes on, I get more and more convinced that the right method of investment is to put fairly large sums into enterprises which one thinks one knows something about and in the management of which one thoroughly believes.” — J.M. Keynes.

Read more - https://gulfbrokers.com/en/daily-market-report-588
 
US stock indexes and precious metals slumped in the final hour of trading on Tuesday as jittery investors slashed their holdings of assets ahead of one of the most awaited economic events of the week, the FOMC meeting decision. The FED meeting outcome should cause noticeable volatility in the markets.

The Federal Reserve is expected to raise interest rates by 50 basis points on Wednesday. The central bank raised the benchmark lending rate by 0.75% points four consecutive times in recent months. However, investors waiting for US Fed Powell’s words on the slowing future increases after the November U.S. inflation cools more than expected.

EQUITIES

US stock indexes rose sharply on Tuesday following the release of a smaller-than-expected rise in U.S. consumer prices boosted bets that the FED will slow the pace of monetary tightening. While the indexes reversed from the highs and ended slightly lower as investors remain cautious ahead of the Fed speech.

OIL

Crude oil futures slightly retreat from the previous session highs after the release of API crude inventory data. The API data showed US crude inventories increased by 7.819 million barrels in the week ended December 9th, following a 6.426 million barrels draw in the previous week. Moving ahead, the oil traders should closely monitor the release of the EIA inventory report and the FED meeting outcome.

CURRENCIES

In the currency market, the GBPUSD recovered from the early session losses after the UK published encouraging November inflation data. The CPI data showed UK inflation eased slightly in November to 10.7% from 11.1% in October. Meanwhile, the EURUSD is steady ahead of Thursday’s ECB meeting.

GOLD

The precious metal trades flat on Wednesday Morning as investors await the Federal Reserve’s interest rate announcement for new indications. On Tuesday, the metal climbed to five-month highs of $1824 following the release of US CPI data. As of this writing, the metal hovers below $1810.

Economic Outlook

On the data front, the US published the latest American consumer inflation data. The annual inflation rate in the US slowed to 7.1% in November 2022, compared to 7.7% in October and below market expectations of 7.3%. Meanwhile, core inflation, which excludes the volatile food and energy prices, dropped to 6.0%.

Moving ahead today, the important events to watch:

US – FOMC interest rate decision and statement: GMT – 19.00

US – FOMC press conference: GMT – 19.30

Coronavirus update:

Worldwide, more than 649 million people have been confirmed infected and more than 6.65 million have died. The United States has confirmed over 99 million cases and has had more than 1.08 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD:
Considering the recently strong bullish momentum, the currency pair is trading near the critical supply zone on the weekly time frame. So, there may be a chance the pair can find strong sellers above the previous session highs.



The important levels to watch for today: Support- 1.0590 and 1.0550 Resistance- 1.0670 and 1.0710.

GOLD: The technical scenario is absolutely bullish. While considering the recently bullish momentum the metal may find strong resistance again above 1825. On the downside, rejection and pullback from the 1825 resistance allow for a dip towards 1800, with 1795 and 1788 forming additional downside targets.



The important levels to watch for today: Support- 1800 and 1788 Resistance- 1820 and 1825.

Quote of the day - Think for yourself and don’t let the market direct you. Security prices sometimes fluctuate, not based on any apparent change in reality, but on changes in investor perception- Seth Klarman.

Read more - https://gulfbrokers.com/en/daily-market-report-589
 
The volatility remains high as the markets are unsettled by swings in volatility caused by the latest FOMC meeting outcome. Today again the Central Banks completely dominate markets, all eyes will turn to the ECB and BOE interest rate decision after US Federal Reserve signaled, they plan to continue to raise rates next year.

The Bank of England monetary policy decision is set to be announced at 12:00 GMT. The Central Bank is expected to raise interest rates by 50 bps during its final monetary policy meeting of 2022, a decision to raise rates today will be the ninth consecutive rise by the Bank.

The ECB is expected to hike its benchmark interest rate by 50 basis points, after the 75 basis point hike in early November. The ECB Monetary Policy Statement is set to be released at 13:15 GMT. Along with this release will see the ECB president Christine Lagarde Conference 30 minutes after at 13:45. The comments from Lagarde should watch closely because the recent CPI data showed Eurozone Consumer prices rose by less last month than expected.

EQUITIES

Asian share markets slipped on Thursday after China's retail sales figures on Friday showed that growth was disappointing in November. China’s retail sales fell by 5.9% in November, compared to the expectations for a decline of 3.7%. Meanwhile, the US stock futures traded near the session lows after Fed Chair Jerome Powell reconfirmed that the central bank's priority is to tackle soaring price pressures.

OIL

Crude oil futures holding weekly gains despite big U.S. crude inventory build. The EIA inventory data showed that US crude inventories unexpectedly jumped by 10.23 million barrels last week. While the recent bullish sentiment was supported by the weaker dollar and lower-than-expected US inflation data.

CURRENCIES

In the currency market, the dollar index, which tracks the U.S. currency against six major peers recovered from the multi-month lows after the Fed’s higher interest rate peak guidance heightened recession fears. Today USD traders should closely monitor the release of the US Retail Sales for November which will give an indication of the strength of the US economy.

GOLD

The precious metal extend the slide on Thursday Morning and the overall market sentiment is expected to remain under pressure in the near term driven by the expectations of further interest rate hikes from the Federal Reserve to tame high inflation. As of this writing, the metal plunged to below $1780.

Economic Outlook

On the data front, US Federal Reserve raised interest rates by 50 basis points and the FED officials said that the central bank will deliver more interest rate hikes in 2023.

"The timing of that moderation is far less significant than the questions of how much further we will need to raise rates to control inflation, and the length of time it will be necessary to hold policy at a restrictive level," FED chair Powell said.

Moving ahead today, the important events to watch:

UK – BOE interest rate decision and statement: GMT – 12.00

Eurozone – ECB interest rate decision and statement: GMT – 13.15

US – Retail sales: GMT – 13.30

Coronavirus update:

Worldwide, more than 649 million people have been confirmed infected and more than 6.65 million have died. The United States has confirmed over 99 million cases and has had more than 1.08 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD:
For today, If the upside momentum continues then the next upside level is to watch at 1.0690 and 1.0730. On the downside, any meaningful pullback now seems to find some support near the 1.0580 zones, below which the slide could further get extended towards the 1.0550/00 regions.



The important levels to watch for today: Support- 1.0580 and 1.0500 Resistance- 1.0690 and 1.0730.

GOLD: For today, the first nearest support level is located at 1786. In case it breaks below this level, it will head towards the next support level which is located at near 1781/77. On the upper side, If the metal regains upside momentum and press back above 1800 then the key resistance area to watch is 1808/10.



The important levels to watch for today: Support- 1786 and 1777 Resistance- 1800 and 1810.

Quote of the day - “When it comes to investing, we want our money to grow with the highest rates of return, and the lowest risk possible. While there are no shortcuts to getting rich, there are smart ways to go about it.” – Phil Town.

Read the original report here - https://gulfbrokers.com/en/daily-market-report-590
 
Globally, the markets were cautious last week driven by hawkish comments from ECB and FED policymakers. The big central banks like the Bank of England, the European central bank, the Swiss national bank and the US Federal Reserve all raised the key interest rates last week. The ECB and FED signalled that they would continue to raise rates to crush inflation. Meanwhile, New York Fed President John Williams said on Friday it remains possible the U.S. central bank will raise rates more than it expects next year.

This week Investors will likely keep a look at the economic releases which include the Bank of Japan rate decision, US durable goods orders, US GDP and US PCE index data.

On the earnings front, the companies scheduled to release their last quarter financial results this week will be Nike, Micron and FedEx.

GOLD

The precious metal closed below the psychological level of $1800 as it struggles to find momentum after central bank plans for more interest rate hikes rattled markets. Higher interest rates tend to boost the dollar and push bond yields up, putting pressure on gold prices by increasing the opportunity cost of holding non-yielding bullion. This week the main drivers for the precious metal remain the movement of the US dollar and US GDP data.



For this week, considering heavy volatility there are chances the metal can rally back to above the key resistance of $1808 then $1820. On the downside, the decline is more extensive, and it will be hard to rule out a run towards $1750 and $1740 if the metal breaks below $1760. The expected trading range for the metal this week is between $1740 support and $1820 resistance.

DOLLAR INDEX

The US Dollar Index, which measures the greenback’s value against the basket of six major currencies fell below the 104 mark last week for the first time since July. However, the greenback found some support on Wednesday after the hawkish comments from the FED chair Powell. Powell said the Fed's actions are not on short-term moves but on "persistence moves" and more rate hikes will follow. This week in the US, the main event of interest is US GDP data and the PCE expenditure price index.



This week, the index needs to stay above 105.80 to have a chance to develop upside momentum in the near term. If the price break and closes above 105.80, the next upside level to watch is 107.30 then 107.70. Nevertheless, if it continues to fall, the slump will quickly extend toward the 104.50 and 104 marks.

EURUSD

EURUSD ended slightly lower on Friday after staging a strong rally on Thursday. The pair hits a fresh 6-month high on Thursday after the European Central bank Chief Christine Lagarde’s comments suggest that the ECB is committed to raising interest rates at a steady pace over a period of time. Moving ahead, this week, the economic data is limited this week to the German business climate data. However, the week ahead is littered with key U.S. economic figures and any market disappointment over the outcome of them could potentially support the Euro.



The currency pair remained in a range above 1.0500 last week, and the initial bias remains neutral for the upcoming week. The key resistance is located for the pair around 1.0670, a break above this level will confirm a possible move to 1.0700/30. On the downside, any meaningful pullback now seems to find some support near the 1.0550 zones, below which the slide could further get extended towards the 1.0500 and 1.0480/50 regions.

DOW JONES

Dow Jones and global indices ended last week on a downbeat note, some of the main factors that contributed to the strong sell-off are the hawkish comments from the FED chair Jerome Powell and weaker-than-expected US economic data. For the Dow, the main attraction for this week is Investors waiting for the US GDP and durable goods orders data, which could trigger volatility in the market.



Technically the overall sentiment remains bearish. However, a fresh demand for Dow can be anticipated once the index rises above the 33,400 resistance. On the other hand, the next immediate support prevails at 32,600, a further breakout of 32,350 can lead the pair towards 32,000 and 31,800 levels.

Check out the weekly analysis here with chart - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-60
 
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