Market Reports by GulfBrokers - 2023

The British engineering company Rolls-Royce's share price (LON: RR) made a strong jump on Thursday after the company reported upbeat annual financial results. RR share price closed yesterday’s trading session with a 20% gain in the markets and resumed a strong bullish trend Friday, gaining another 6% during the European session.

Rolls-Royce, known for its plane engines, which makes engines for Airbus A350, and Boeing 787 planes posted an operating profit of £652 million (US$786.4 million) for 2022. The company also noted that large engine flying hours were at 65% of 2019 levels, having increased towards the end of 2022 as China reopened.

“While our performance improved in 2022, we are capable of much more, our transformation programme will improve our efficiency and commercial outcomes and deliver a sustainable reduction in working capital.” - the new chief executive of Rolls-Royce, Tufan Erginbilgic said.

Rolls-Royce shares short-term forecast​

Based on the above fundamentals and recent stock performance in the market, there is a high likelihood that, in the next few trading sessions, we might see the Rolls-Royce share price hitting the 150 supply level. If this happens, the next key resistance level to watch will be at 170. The below chart also indicates that the current bullish trend may be long-term. On the other side, if the price break and close below 130, the next immediate support is to watch 118/14.

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Read more here - https://gulfbrokers.com/en/rolls-royce-shares-rally-25-after-reporting-solid-annual-results
 
Precious metals, major indices and commodities started the new week on a nervous note as the US rate hike worries still weighing on the markets. Overall, global markets continue to face uncertainty over the direction of inflation and interest rates, which are likely to lead the volatility in the near term.

Moving ahead, the markets have a lot of economic data to digest this week and the main highlights of the economic calendar will be the US durable goods orders data, ECB minutes and the latest PMI numbers from US, Eurozone and UK.

On the earnings front, the companies scheduled to release their last quarter financial results this week will be Zoom, Salesforce, Snowflake, Nio, Costco and Target.

GOLD

The precious metal extends the losses and pointed to a negative start to a new week. We expect that the Federal Reserve's aggressive monetary policy stance could weigh on precious metals in the near term. The volatility remains high this week as well, based on a list of important data and events. However, the main driver for the precious metal remains the movement of the US dollar.



From a technical perspective, gold maintains a negative bias according to the weekly chart. This week, If the bearish momentum continues then the next key support area to watch is $1795 then $1780. On the upper side, If the metal regains upside momentum and presses back above $1830 then the key resistance area to watch is $1848/55.

DOLLAR INDEX

The dollar index, which tracks the currency against key rivals ended for its third consecutive fourth gain. The bullish sentiment improved last week after the release of the Personal Consumption Expenditures (PCE) price index, the Fed’s preferred gauge of inflation unexpectedly came hotter than forecast, which raised market hopes that the Fed will need to continue raising interest rates. Fundamentally the greenback is expected to be extra volatile this week due to a busy US economic calendar.



Technically the overall momentum remained bullish over the last few weeks. On the bullish side, this week the resistance stays above 105.60, and a break above this exposes the index to the 106 level. On the flip side, rejection and pullback from the 105.60/80 resistance area allow for a dip towards 105, with 104.70/30 forming additional downside targets.

EURUSD

Euro suffered significant losses against the USD last week again and the currency pair has been moving lower since starting of this month, largely due to a broad strengthening in the US dollar. The overall sentiment remains under pressure as the seemingly inevitable divergence in US and European monetary policy was expected to continue supporting the dollar in the longer term. Some of the key factors the Euro traders should monitor this week is the ECB minutes and the latest consumer inflation figures from Germany and the Eurozone.



This week, the last week's low at 1.0530 is the immediate support level, followed by the 1.0500 psychological level. If the pair breaks and close below 1.0500 the slump will quickly extend toward the 1.0470/60 mark. On the other upper side, the immediate resistance is at 1.0580 then the key resistance levels to watch are 1.0610 and 1.0640.

DOW JONES

Dow trading marginally flat on Monday and the upside pressure clearly weakened amid a solid ceiling in place. Dow and other main US indices 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 ISM manufacturing data on Wednesday as well as the earnings results from retailers including Costco, Target and Macy’s.



This week, Dow can rise if it rebounds back to above the 33,500 level again, any break and closes above this level the next upside levels to watch are 33,750 and 34,000. Nevertheless, if it continues the bearish momentum, the slump will quickly extend toward the 32,450 and 32,100/000 marks.

Read more - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-69
 
The British Pound was the clear outperformer in the currency space on Monday against the US dollar and other currency pairs. GBPUSD recovered back to above 1.2050 on Monday. GBPUSD traded with strong bearish sentiment in the last couple of weeks. During the previous week, the pair tested the key support area of 1.1925 weighed down by a broad-based rally in the dollar.

Yesterday’s strong rebound in GBP lifted after Britain and the European Union announced an agreement over a new Brexit deal on Northern Ireland. The agreement ends a long chapter of negotiations between the UK and EU. After months of negotiations, the deal was announced by UK Prime Minister Rishi Sunak and European Commission President Ursula von der Leyen. European Commission President Ursula von der Leyen acknowledged the tense relations between the UK and EU since Brexit.

“The United Kingdom and European Union may have had our differences in the past, but we are allies, trading partners and friends, something that we’ve seen clearly in the past year as we joined with others to support Ukraine,” UK Prime Minister Rishi Sunak said.

EQUITIES

European and UK shares concluded the first trading session of this week on a modestly positive note while major U.S. indexes closed mixed on Wall Street as investors have grown increasingly concerned that the Federal Reserve will continue raising interest rates in coming meetings.

On the earnings front, Target, Rivian and AutoZone are amongst those reporting the last quarter's financial results today.

OIL

Crude oil prices started the new week on a mixed note and struggle to find long-term direction as it continues to move up and down in a narrow channel. The crucial US ISM PMI and weekly crude inventories figures this week will be the key economic data points which could determine the next move for the oil price.

CURRENCIES

In the currency market, the Australian dollar struggling to regain upside momentum despite the release of a stronger-than-expected Australian retail sales report. Retail Sales in Australia increased by 1.9% in January of 2023, which beat forecasts for an increase of 1.5 percent following the 3.9 percent contraction in the previous month. On the other hand, the US dollar index (DXY) recovered from the previous session losses, the DXY hit a fresh weekly low of 104.50 on Monday's North American session following the release of weak US durable goods order data.

GOLD

After having closed the last 4 trading days of the previous week in negative territory, the precious metal ended slightly higher on Monday. However, the overall momentum remains bearish. Moving ahead to the North American session, gold traders and investors should closely monitor the release of the Conference Board's US Consumer Confidence Index data.

Economic Outlook

On the data front, the US Commerce Department has reported that orders for durable goods in the United States fell 4.5% in January. Meanwhile, pending home sales in the US unexpectedly surged 8.1% in January, beating market forecasts of a 1% gain.

Moving ahead today, the important events to watch:

Canada – GDP: GMT – 13:30

US – CB consumer confidence: GMT – 15:00

Technical Outlook and Review

EURUSD:
For today, the key resistance is around 1.0640, a break above this level will confirm a possible move to 1.0670 then 1.0700 minimum. On the downside, the first nearest support level is located at 1.0560. In case it breaks below this level, it will head towards the next support level which is located near 1.0530/00.



The important levels to watch for today: Support- 1.0560 and 1.0530 Resistance- 1.0640 and 1.0670.

GOLD: Technically the current price action signals suggest that a medium-term bearish trend remains intact. On the downside, the decline is more extensive, and it will be hard to rule out a run towards 1800 and 1780 if the bearish momentum continues. On the flip side, the gold price needs to stay above 1830 to have a chance to develop upside momentum in the near term.



The important levels to watch for today: Support- 1808 and 1800 Resistance- 1820 and 1826.

Quote of the day - “While it might seem that anyone can be a value investor, the essential characteristics of this type of investor-patience, discipline, and risk aversion-may well be genetically determined.” - Seth Klarman.
Read more - https://gulfbrokers.com/en/daily-market-report-623
 
Shares of the video-conferencing software company Zoom Video Communications (NASDAQ: ZM) surged more than 8% to $80 in after-hours trading on Monday following the company released better-than-expected fourth quarter (Q4) financial results. The company registered over 100,000 enterprise customers, surging by 27% compared to the last year's end results.
  • Earnings per share (EPS) $1.22 vs. $0.79 expected
  • Revenue $1.12 billion vs. $1.10 billion expected
"While the macroeconomic situation continues to negatively impact our overall growth, we have maintained a healthy balance sheet and operating cash flow generation of approximately $1.29 billion," Zoom CEO Eric Yuan said.

For the current quarter, Zoom sees earnings of 96 to 98 cents per share on revenue of $1.08 billion to $1.085 billion. Meanwhile, the company forecasts annual revenue below Wall Street estimates. The company expects revenue between $4.44 billion and $4.46 billion for fiscal 2024, compared to the market estimate of $4.6 billion.

Last year, Zoom’s stock plunged more than 90% from its all-time high in October 2020. The stock price has fallen to pre-pandemic levels as the company faces increased competition from the likes of Microsoft Teams and Google Meet. These factors also resulted in many analysts downgrading the company’s stock. Recently, Zoom CEO Eric Yuan announced plans to lay off 1,300 employees, accounting for 15% of its global staff.

Is it the right time to buy Zoom stock?

Based on the fundamentals above and the recent upside momentum, there is a high likelihood that we might continue to see Zoom stock continue to grow in the short term. The next immediate resistance for the stock is near the $85.50 zone then $90, breaks and closes above the $90 level then expects the market to zoom up to $100 and $108.50. On the downside, if the bearish sentiment continues then the crucial support remains at the 52-week low of $63.55 and $60.



For the long-term, it is best to wait for the overall market sentiment to improve because now FED rates are expected to increase further, and there’s daily debate about whether the Fed could be even more aggressive than expected. On the other hand, the share price has had a terrible performance in the last 2 years, so it is still relatively difficult to recommend Zoom as a long-term investment.

Read more here - https://gulfbrokers.com/en/zoom-zm-jumps-8-as-q4-beats-is-bear-trend-over
 
Bitcoin, the world's largest and most popular cryptocurrency started the new month on a bullish note. The Bitcoin price jumped back to nearly $24,000 but pulled back modestly thereafter.

In the short term, the immediate support will be the same as the previous session’s low at $23,050, below which the slide could extend towards $22,300. On the upper side, if the pair break above $24,000 it would open doors towards the next resistance area of $24,500 and above that $25,000 is next.

For the long term, $22,200 is a crucial support zone to watch. If the pair breaks below $22,200, the slump will quickly extend toward the $21,000 and $20,300 marks. On the flip side, the bullish breakout of 25,300 is likely to push the crypto pair into a new trading zone, which may offer further buying opportunities until $26,000 then $27,500.

EQUITIES

US stock futures trading marginally lower on Tuesday and the upside pressure clearly weakening amid a solid ceiling in place, the near-term bias points to Wall Street weakness in the rest of the week ahead. The recent bearish sentiment was also fueled after the Federal Reserve (Fed) policymakers stated that the current monetary policy is insufficiently restrictive to reduce persistent inflation in the near term.

On the earnings front, Salesforce, Snowflake and Nio are amongst those reporting the last quarter's financial results today.

OIL

Crude oil futures edges higher during the Asian session after China, the world's biggest oil importer reported stronger-than-expected manufacturing data. China’s Manufacturing PMI increased to 51.6 in February 2023 from 49.2 in January, above the market consensus of 50.2. Meanwhile, the API crude inventories report showed the inventories jumped by 6.203 million barrels in the week ended February 24th, 2023, following a 9.895 million barrels gain in the previous week.

CURRENCIES

In the currency market, EURUSD rebounded from the early lows and tested the previous session highs after Goldman Sachs stated that it expects a 50-basis point increase in interest rates from the ECB in the May meeting after the March meeting. Moving ahead, the unveiling of the ECB minutes on Thursday may influence the euro, and any indication of a shift in policy could affect the euro and European markets.

GOLD

Gold price jumped to a fresh weekly high of $1837 during the European session on Wednesday after the dollar index extended losses and dropped below the 104.30 area. As of this writing, the metal retreats back to near the daily support area of $1830. Today gold investors and traders should closely monitor the release of US ISM manufacturing PMI data which is scheduled for later in the day.

Economic Outlook

On the data front, U.S. consumer confidence fell for the second straight month in February. The Conference Board reported Tuesday that its Consumer Confidence Index now stands at 102.9, down from 106.0 in January.

Moving ahead today, the important events to watch:

Germany – CPI: GMT – 12:00

US – ISM manufacturing PMI: GMT – 15:00

Technical Outlook and Review

EURUSD:
Euro needs to stay above 1.0650; otherwise. 1.0570 and 1.0530 may be visible soon. On the upper side, if the pair breaks and closes above 1.0650 then the next resistance area to watch is around 1.0680 and the crucial one is 1.0700.



The important levels to watch for today: Support- 1.0600 and 1.0560 Resistance- 1.0670 and 1.0700.

GOLD: For today, the initial bias remains bullish. The key resistance is located for the metal around 1838, a break above this level will confirm a possible move to 1844/48. On the downside, any meaningful pullback now seems to find some support near the 1827 zones, below which the slide could further get extended towards the 1820/18 regions.



The important levels to watch for today: Support- 1827 and 1820 Resistance- 1838 and 1844.

Quote of the day - You don’t need to trade often. If you can catch one or two moves to the targets during the day with good size, you can make a good living and keep trading costs down.
Read more - https://gulfbrokers.com/en/daily-market-report-624
 
Shares of the electric-vehicle giant Tesla (TSLA) dropped nearly 6% in after-hours trading to $191 after Tesla’s Investor Day failed to impress the investors and traders. Investors were expecting Tesla CEO Elon Musk to present the third stage of the "master plan" for sustainable energy at the electric car manufacturer. While Elon Musk only unveiled very few new features.

Musk presented the company's "Master Plan 3" but kept a low profile on new products. The plan aims to establish a sustainable energy economy by developing 240 terawatt hours of energy storage and 30 terawatt hours of renewable power generation, requiring a $10 trillion investment.

During the company's Investor Day, Elon Musk confirmed the details of the new plant. On Tuesday, Tesla announced the construction of a new company production facility in Mexico, near Monterrey, Nuevo León. It would be the company’s first factory outside of the United States, Germany and China, and Musk is expected to provide more details on Wednesday.

EQUITIES

The Dow Jones and other US stock indexes ended mixed on Wednesday. However, overall momentum remains under pressure after the recent strong US economic data fueled expectations the Federal Reserve would maintain its path of interest rate hikes to combat inflation.

On the earnings front, Costco, Best Buy and ChargePoint are amongst those reporting the last quarter's financial results today.

OIL

Crude oil prices ended higher on Wednesday despite the release of EIA reports large crude Inventory build. The latest EIA report showed that US crude inventories rose by 1.166 million barrels last week, much higher than market forecasts for a 457,000-barrel increase.

CURRENCIES

In the currency market, EURUSD jumped to a fresh weekly high of 1.0690 on Wednesday but failed to extend the gains. As of this writing, the currency pair retreats back to 1.0635. Moving ahead, euro Investors and traders should closely monitor the release of the Euro area inflation and the ECB monetary policy meeting minutes, which will give traders a lot of hints about where monetary policy is headed this year.

GOLD

Gold price reversed from the previous session's gains driven by hawkish comments from the FED policymakers. Atlanta Fed President Raphael Bostic called for continued rate hikes to above 5% to make sure inflation does not pick up again. Bostic warns that premature monetary policy easing could lead to a resurgence of inflation.

Economic Outlook

On the data front, the latest US economic data showed that U.S. manufacturing activity is still weak but accelerating. ISM Index weakened for the third month to remain in contraction, suggesting a sustained manufacturing sector slowdown. The ISM Manufacturing PMI increased from 47.4 to 47.7 in February.

Moving ahead today, the important events to watch:

Eurozone – CPI: GMT – 10:00

Eurozone – ECB minutes: GMT – 12:30

Technical Outlook and Review

EURUSD:
The key resistance is located above 1.0700, a break above this level will confirm a possible move to 1.0740/70. On the downside, if the pair loses the 1.0600 handles, then we expect a move of 1.0530.



The important levels to watch for today: Support- 1.0600 and 1.0560 Resistance- 1.0700 and 1.0740.

GOLD: Technically If the upside momentum continues then the next upside level is to watch 1848 and 1855. On the flip side, a breakdown through 1820 would negate that bias and suggest a test of the 1800 and 1780 support regions.



The important levels to watch for today: Support- 1820 and 1814 Resistance- 1840 and 1848.

Quote of the day - “The biggest mistake investors make is to believe that what happened in the recent past is likely to persist. They assume that something that was a good investment in the recent past is still a good investment.” - Ray Dalio.
Read more - https://gulfbrokers.com/en/daily-market-report-625
 
Global markets showed a lot of volatility and closed with significant losses last month. The bearish sentiment is driven by the release of hotter-than-expected US inflation data and hawkish comments from Federal Reserve policymakers. The FED minutes also showed policymakers agreed rates would need to move higher in the near term.

Check the below technical analysis for levels of support and resistance of the important assets for this month.

King Dollar: DXY

Considering the strong rebound in February, the greenback slipped to near 104 on the first trading day of this month after the release of weaker-than-expected US business activity and consumer confidence. However, the king dollar strongly recovering back from the early losses. Therefore, the retreat in recent days in USD appears to be a consolidation rather than a reversal of last month's upside move. The index is expected to make a new 2023 high by next week if it breaks above 105.30 (the previous month's high). On the flip side, the key support remains below 104. In case it breaks below this level, it will head towards the next support level which is located near 103.40.

EURUSD

The currency pair started the new month on a bullish note but the bullish momentum appears to have run out of steam, as the price has struggled and failed to stay above 1.0700. This month, good support is expected at the 1.0530 area, with this zone having held last month while further down, demand is also expected around 1.0500, which will act as the next area of support. Losing this area and I'd expect further downward momentum to 1.0460/30 areas. On the flip side, the first immediate resistance level for the pair is the 1.0720 area, and then the stronger resistance is 1.0800, which is important to be stable above it for a continuing rise to 1.0900/30 levels.



Bitcoin: BTC/USD

The price of Bitcoin reversed from the highs after the crypto pair once again failed to break above and hold a $25,000 handle. For this month, $22,200 is a crucial support zone to watch. If the pair breaks below $22,200, the slump will quickly extend toward the $21,000 and $20,300 marks. On the flip side, the bullish breakout of 25,300 is likely to push the crypto pair into a new trading zone, which may offer further buying opportunities until $26,000 then $27,500.

Gold and Silver

Gold price got the market's favor by starting off this week, but demand for the metal receded after the hawkish comment from Atlanta Fed President Raphael Bostic. Bostic called for continued rate hikes to above 5% to make sure inflation does not pick up again. The scenario will turn more lively from the macroeconomic point of view starting next week, with the release of the February US NFP report. The technical scenario is absolutely bearish and attempts to exit the current bearish channel will not succeed without moving above the $1850 resistance so far, the bears are still determined to break the psychological support of $1800 in the coming days.

The technical outlook for both metals has recently weakened, leading to some selling pressure. Silver prices remain vulnerable to further losses if Fed's hawkish stance remains elevated. The metal is expected to fall further and test the key psychological support area of $20 if it breaks and closes below the $20.50 support area. On the upper side, silver is likely to find immediate resistance at $21.10 then a crucial one at $21.40. If the silver price rises above the $21.40 zone a fresh demand for the metal can be anticipated.

Check out the complete article with charts here - https://gulfbrokers.com/en/monthly-technical-analysis-march-2023
 
Stocks on Wall Street ended slightly higher, gaining early in the day as investors cheered positive comments from Atlanta Fed President Raphael Bostic and the markets received additional buying pressure on better-than-expected quarterly earnings results from Okra, Dell and Macy’s. Bostic supported keeping rate increases at 25 basis point increments and said the central bank could be in a position to pause rate hikes sometime this summer. Meanwhile, Fed Gov. Chris Waller said if the data continues to be too hot, the policy target will have to be raised above 5.4%.

Moving ahead, today's ISM services PMI data will be the highlight of the final trading day of the week along with any speakers from the Fed will also be closely watched.

EQUITIES

European shares opened higher on Friday. Meanwhile, the overall upside is very limited. On Thursday, European markets ended higher following the release of the latest ECB minutes. The minutes said the policy rates were coming closer to a level where caution was needed to ensure that borrowing costs were not raised excessively.

OIL

Crude oil futures held the previous session gains despite the strong US dollar and another larger-than-expected crude draw. This week's bullish sentiment was supported by stronger-than-expected PMI figures from China. The latest services PMI data from China showed, the services PMI climbed to 55.0 in February 2023, up from 52.9 in the previous month.

CURRENCIES

In the currency market, EURUSD rebounded back to above 1.0610 as the US Dollar consolidated against its rivals after climbing to above 105 but yesterday’s reversal showed that the euro uptrend against the dollar is losing momentum after the recent rebound. However, investors should closely monitor the release of the latest services PMI data from the Eurozone and Germany today.

GOLD

The safe-haven metal recovered back to above $1840 Friday morning. Considering the recent rebound gold investors should closely monitor the release of US services activity data. Technically, the short-term trend remains supportive while If the US dollar regains further upside strength, we could see an extension to the weakness in the precious metals.

Economic Outlook

On the data front, Euro Zone inflation eases slightly to 8.5% in February, but core inflation rises to 5.6% in February, from 5.3% in January. ECB President Christine Lagarde said that rates will have to rise higher and stay higher for some time to combat inflation.

Moving ahead today, the important events to watch:

UK – Services PMI: GMT – 09:30

US – ISM services PMI: GMT – 15:00

Technical Outlook and Review

EURUSD:
From a technical perspective, the 1.0570 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 1.0550 and 1.0530 support zone.



The important levels to watch for today: Support- 1.0570 and 1.0550 Resistance- 1.0640 and 1.0670.

GOLD: Today as long as the metal trades above 1840 levels, the short-term uptrend will remain in place. On the upper side, the first resistance is located around 1848, a break above this level will confirm a possible move to 1855. On the downside, 1838 is the immediate support level, followed by 1734. Further selling pressure will intensify only if the metal break below 1830 levels.



The important levels to watch for today: Support- 1835 and 1828 Resistance- 1848 and 1855.

Quote of the day - “Your success in investing will depend in part on your character and guts and in part on your ability to realize, at the height of ebullience and the depth of despair alike, that this too, shall pass.” Jack Bogle.
Read more - https://gulfbrokers.com/en/daily-market-report-626
 
The focus of the market this week will be the speech of the Federal Reserve chair Jerome Powell for cues on interest rate hikes and the state of the economy. Powell testifies before Congress on Tuesday and Wednesday. Anything suggesting more aggressive tightening, and thereby adding to fears over a global economic slowdown, is negative for risk appetite.

On the other hand, meetings of major central banks with RBA, BOC and BOJ on the horizon return this week. Investors will also be keeping an eye on the Eurozone GDP on Wednesday as well as the US nonfarm payroll data for February on Friday.

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

GOLD

The precious metal started the month on a positive note and overall momentum remained bullish throughout last week. The medium-term trend remains supportive but 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. This week is littered with key U.S. economic figures and any market disappointment over the outcome of them could potentially support the gold.



On the bullish side, this week the resistance stays above 1865, and a break above this exposes the metal to the 1874 and 1882 levels. On the flip side, rejection and pullback from the 1865 resistance allow for a dip towards 1848 and with 1840 and 1835 forming additional downside targets.

DOLLAR INDEX

The dollar index ended slightly lower on Friday as it struggles to find momentum after the mixed comments from FED policymakers. Overall, the pair have been coming under selling interest after hitting the latest ceiling of 105.30 and this has been the case since starting last week. This week, traders and investors should also pay attention that the February U.S. unemployment report is due Friday. The NFP expectations are for 200k jobs to have been added to the US economy in February.



The greenback remained in a range above 104 last week despite the retreat, and the initial bias remains neutral for the upcoming week. The key resistance is located for the index around 105.30, a break above this level will confirm a possible move to 105.80. On the downside, any meaningful pullback now seems to find some support near the 104.20/104 zones, below which the slide could further get extended towards the 103.70 and 103.40 regions.

EURUSD

Euro started the last week on a bullish note while the bulls failed to extend the rebound and the currency pair fell back to below 1.0600. Moving ahead to this week, there are no important economic reports scheduled to be released in Europe this week except the Eurozone GDP data. However, the US dollar movement will continue to play a vital role in this currency pair's future direction.



This week, the currency pair needs to stay above 1.0700 to have a chance to develop upside momentum in the near term. If the price break and closes above 1.0700, the next upside level to watch is 1.0750 then 1.0790. Nevertheless, if it continues to fall, the slump will quickly extend toward the 1.0560 and 1.0530 marks.

DOW JONES

Dow Jones and other major US indices ended higher last week on hopes Fed will slow rates hikes. The upside momentum was boosted after Atlanta Fed President Raphael Bostic supported keeping rate increases at 25 basis point increments and said the central bank could be in a position to pause rate hikes sometime this summer. For the Dow, the main attraction for this week is FED chair Powell's speech and US NFP data, which could trigger volatility in the market.



From a technical perspective, The $33,000 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 32,500 support zone. On the upper side, in case the index manages to settle above 33,400, it will continue upside momentum and head towards the next resistance level at 33,650/800.

Check out the original article here - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-70
 
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