Weekly analysis: Gold, USD, EURUSD and Dow Jones 2021

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The week all eyes will be turning to the central bank meetings as the investors wait for further clues on future policy and the prospect of tapering QE. The RBA will kick off this month central banks policy meeting on Tuesday followed by the US Federal Reserve (Fed) and the Bank of England (BoE).

On the other hand, the investors also waiting for the release of the October US employment report on Friday. Economists are expecting that U.S. employers created 750,000 jobs last month, with the unemployment rate dropping to 5.2%.

On the earnings front, the big tech giants like Apple and Amazon reported weaker-than-expected earnings results last week. Moving ahead to this week, the Q3 earnings season continues, with Uber, Pinterest, Pfizer and Moderna all reporting earnings this week.

GOLD

Gold price ended lower last week amid Fed's monetary tightening expectations. The FED will begin a two-day policy meeting on Tuesday. During the last FED meeting, the central bank signalled plans to begin tapering its bond-buying stimulus by year’s end and possibly raise interest rates in 2022, a year earlier than it had anticipated.

gold neww


For this week, $1,760 is the immediate support level, followed by $1,745. If the pair breaks below the $1,745, the slump will quickly extend toward the $1,720 mark. On the upper side, gold is likely to find immediate resistance at $1,793, any break above the $1,793 level could lead the prices of the precious metal towards the next resistance levels of $1,810 and $1,815.

DOLLAR INDEX

The US dollar gained strong bullish momentum last Friday ahead of the key FOMC meeting and the Index closed above the 94 psychological level. The upside momentum also boosted after the release of stronger-than-expected US consumer sentiment data. US Michigan's consumer sentiment was revised slightly higher to 71.7 in October of 2021 from a preliminary of 71.4.

DXY


This week, the key resistance is located above the previous month high around 94.50, a break above this level will confirm a possible move to 94.80/95.00. On the downside, if the Index loses the 93.70 handle, then we expect a move toward 93.30.

EURUSD

EURO traded extra volatile last week. The currency pair first rose nearly 0.7% against the dollar on Thursday after the European Central Bank decided to leave its monetary policy unchanged. But on Friday, the EURO erased the gains and the European single currency fell back to near the monthly low.

eurusd


Technically the overall momentum remains bearish, the immediate support for the Euro stands near the psychological level of 1.1500 followed by 1.1450. On the flip side, the first resistance at 1.1590 any break above this level will open 1.1625/40 minimum.

DOW JONES

Dow Jones closed out October solidly in the green supported by robust Q3 earnings results and oil price rally. For this week, the main drivers for the Index will be the Q3 earnings results and FOMC decision, and the OPEC meeting outcome.

cruse


This week, the first resistance is located around 35,950, a break above this level will confirm a possible move to 36,050/100. On the downside, any meaningful pullback now seems to find some support near the 35,500 zones, below which the slide could further get extended towards the 35,350/00 region.

Read more- https://gulfbrokers.com/en/weekly-analysis-gold-usd-eurusd-and-dow-jones-12
 

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Last week, most stock markets around the world ended higher boosted by stronger-than-expected US employment reports and corporate profits. The Bureau for Labor Statistics said 531,000 new jobs were created last month, compared to a market expectation of 450,000 and the unemployment rate down to 4.6%. Moving ahead to this week, the economic data is limited to inflation data for the US, Germany and China.

On the earnings front, the companies due to release their results will be the Data-mining and analytics firm Palantir Technologies (NYSE: PLTR) and the entertainment giant Walt Disney (NYSE: DIS) will be among those reporting earnings this week.

GOLD

Gold price rallied more than 2% last week after the USD gives back some of the gains. However, considering the recent strong upside momentum, the US dollar movement will continue to play a vital role in the metal‘s future direction.

gold neww


This week, the key resistance is located above $1830, a break above this level will confirm a possible move to $1842/60. On the downside, if the metal loses the $1790 handle, then we expect a move toward $1780/72.

DOLLAR INDEX

The US dollar index ended slightly lower on Friday. On Friday, the Index jumped from the session low of 94.18 to almost the session high of 94.60 after a better than expected U.S. NFP job report. But soon after the NFP jump, the greenback retreated back to below 94.20. While the downside looks solid as traders should continue to accumulate on dips towards 93.70-93 in the near term.

DXY


For this week, the index is supported at 93.80 level, any break below this level will open the doors to 93.50 and 93.30. On the flip side, if the DXY breaks above 94.60 which would open doors towards the next resistance area of 94.80/95.

Read more here - https://gulfbrokers.com/en/weekly-analysis-gold-usd-eurusd-and-dow-jones-13
 

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Global markets ended mixed last week after annual consumer inflation in the US accelerated to a three-decade high. Retail sales data from China and US, Federal Reserve speakers and the Eurozone and UK inflation numbers will be in focus this week.

On the earnings front, the companies due to release their results will be the world’s largest retailer Walmart ( NYSE: WMT), semiconductor maker Nvidia (NASDAQ: NVDA) and the e-commerce giant Alibaba (NYSE: DIS) will be among those reporting earnings this week.

GOLD

The Safe-haven metal spiked to its highest level since June despite the renewed strength in the US dollar. The recent strong upside momentum is driven by hotter-than-predicted U.S. inflation data.

gold neww


Technically the overall momentum remains bullish throughout the last couple of weeks. This week, If the bullish momentum continues then the next upside level is to watch $1870 and $1900. On the downside, any meaningful pullback now seems to find some support near the $1840/32 zones, below which the slide could further get extended towards the $1820/15 regions.

DOLLAR INDEX

The dollar index, which tracks the U.S. currency against six major peers ended for its best week in almost five months. The Index rose to a fresh 15-month high after the latest inflation reading renewed pressure on FED policymakers to lift interest rates.

DXY


This week, If the bullish momentum continues then the next upside level is to watch 95.25 and 95.60. On the flip side, a breakdown through 94.55 would negate that bias and suggest a test of the 94.20 and 94.00 support regions.

EURUSD

Last week, the currency pair hits its lowest level since July 2020. On Friday, the currency pair attempted to bounce but it failed to extend the rebound after the eurozone economic data showed the industrial production fell for the second straight month in September.

eurusd


This week, the key support appears to be around 1.1400, a break below this level will confirm a possible move to 1.1380/60. On the flip side, the first resistance at 1.1870 any break above this level will open 1.1900/30 minimum.

DOW JONES

Wall Street ended mixed on Friday as traders worried about continued high inflation bad for the market. Dow Jones remained under pressure for the whole last week except the Friday gains. For Dow, the main attraction for this week is the US retail sales data and Wal-Mart earnings report on Tuesday.

cruse


Dow Jones futures started the new week in a mildly bearish manner. In the short term, if the bearish momentum continues the next downside levels to watch 35,910/800 and 35,500. On the upper side, the first immediate resistance is around 36,200 and then 36,500.

Read more- https://gulfbrokers.com/en/weekly-analysis-gold-usd-eurusd-and-dow-jones-14
 

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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.

gold neww


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.

DXY


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.

eurusd


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.

cruse


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.

Read more - https://gulfbrokers.com/en/weekly-analysis-gold-usd-eurusd-and-dow-jones-15
 

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Global equities and oil prices rallied last week. As we progressed through the last month of the year, Investors are gearing up for another busy week with the same dominant themes amid a busy economic calendar. Investors will continue to monitor guidance and comments coming from central banks of major economies about the rising inflation. A series of central bank meetings including the UK, US, Japan and Europe are scheduled across the week. Other key figures this week include Eurozone inflation and US retail sales, UK employment data and CPI.

On the earnings front, the companies due to release their results will be the Digital media and marketing software firm Adobe (NASDAQ: ADBE) and the world's biggest package delivery group FedEx (NYSE: FDX) will be among those reporting earnings this week.

GOLD

The safe-haven metal continues to swing between losses and gains across last week. As the greenback gathers strength, the metal is struggling to firm to the upside despite the economic uncertainties. This week, the main drivers for the precious metal remain the higher inflation and the movement of the US dollar.

gold neww


For this week, the immediate support will be the same as last week low $1769, below which the slide could further get extended towards $1755 then $1745/40. On the flip side, the immediate resistance is seen at $1796 any break above this level will open $1810/15 minimum.

DOLLAR INDEX

The greenback ended higher last week. While momentum on the upside has slowed down, the market breadth remains intact and there is no indication of profit booking or reversal emerging from the highs. The Index is expected to be extra volatile on Wednesday after the FOMC meeting and the USD traders also strongly waiting for the comments on inflation and interest rates from FED chairman Jerome Powell.

DXY


This week the resistance for DXY is around 96.70, any break over targets 96.95/97.20. On the downside, any meaningful pullback now seems to find some support near the 95.75 zones, below which the slide could further get extended towards the 95.50/95.00 region.

EURUSD

The euro has continued to move downward over the last week against trade-sensitive and ‘risk on’ currencies like the Aussie dollar and Canadian dollar. This week, the ECB’s meeting and press conference on Thursday is likely to have a significant effect on the currency pair after the spread of the Omicron coronavirus variant across Europe.

eurusd


For Euro, the first nearest support level is located at 1.1250. In case if it breaks below this level, it will head towards the next support level which is located at near 1.1230 then 1.1200. On the upside, 1.1345 will act as an immediate and strong hurdle while 1.1380 will be a critical resistance zone because above this, bulls are likely to dominate.

DOW JONES

Read more- https://gulfbrokers.com/en/weekly-analysis-gold-usd-eurusd-and-dow-jones-16
 

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Global stocks and crude oil prices ended lower last week as the investors remain concerned about the fast-spreading Omicron coronavirus variant. This week the economic calendar light before the Christmas holidays, we doubt this week will see significant moves for the global markets after Thursday European session. The main event in the calendar is the latest GDP data from the UK and US on Wednesday.

On the earnings front, the companies due to release their results will be the Apparel and footwear giant Nike (NYSE: NKE) and the computer memory-maker Micron Technology (NASDAQ: MU) will be among those reporting earnings this week.

GOLD

Gold price after making a low at $1750, staged a smart recovery. The metal rose to a fresh monthly high last week as investors opted for the safe-haven asset ahead of Christmas and New Year holidays. While on Friday, the previous metal slightly reversed from the early gains after the King dollar regained some upside momentum.

gold neww


For this week, $1815/16 remains the key resistance to watch. However, as long as the metal is trading above $1800, a pullback rally is likely to continue up to $1815 and $1830. On the downside, the first nearest support level is located at $1794. In case if it breaks below this level, it will head towards the next support level which is located at near $1786 then $1782.

DOLLAR INDEX

The US dollar, which is also often seen as the ultimate safe-haven currency, held firm against many other rivals, including the euro and commodity-linked currencies. The US dollar received strong upside momentum after the Federal Reserve took a significant hawkish turn last week.

DXY


This week, if the long-term bullish trend remains intact DXY can give a move towards above 97.00 levels in the coming weeks. On the downside, any meaningful pullback now seems to find some support near the 96.35 zones, below which the slide could further get extended towards the 96.00/95.80 region.

EURUSD

The currency pair remains under pressure as several European countries have introduced restrictions to stem the spread of the Omicron variant. On the other hand, last week the ECB said it would end its 1.85 trillion euro pandemic emergency asset-buying scheme next March.

eurusd


Technically the overall trend still looks bearish and the next immediate support is at 1.1220 then 1.1180. On the upper side, in case the pair manages to settle above 1.1300, it will gain upside momentum and head towards the next resistance level at 1.1345 and 1.1370.

DOW JONES

Dow Jones futures extended losses in early morning trade Monday, worries about the economic fallout from the new Omicron virus outbreak that originated in South Africa has fueled a sharp sell-off. Meanwhile, the recent study showed that the risk of Omicron infection is five times higher than the Delta variant.

cruse


Technically the current price action signals suggest that a short term bearish trend remains intact. On the downside, the decline is more extensive, and it will be hard to rule out a run towards 34.750 and 34,450 if the bearish momentum continues. On the upper side, the first immediate resistance around 35,430 and then 36,000.

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syamfx2020

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Global stocks and crude oil futures started the last week of this year on a bearish note as a new virulent omicron variant of the coronavirus takes hold. In the US, almost 2,400 flights were cancelled over the holiday weekend. We should also remember that New Year is approaching and in the next few trading sessions, liquidity will be lower than usual, which could generate some spikes in both directions.

Markets in the UK, Australia and New Zealand are closed on Monday and Tuesday to mark the Christmas and Boxing day holidays. While Thursday is the final trading day in 2021 for stocks in Japan, Germany and Italy as their markets will be closed on Friday.

GOLD

The safe-haven metal-edged higher over lower economic recovery expectation after the fresh spikes in Omicron variant across the world. The metal has also found support in the weakening US dollar.

gold neww


This week, the gold prices continue to trade above the important support level of $1780. If the bulls manage to push the price to break above the $1815 resistance level, the next target will be at $1830/32. On the flip side, a move below the $1780 level will have the bears targeting the lower level of $1768/60.

DOLLAR INDEX

The dollar index overall momentum remains mixed after last week dollar weakness. But the US dollar was one of the strongest currency pairs this year. The bullish rally was driven by the worries about a slowing global economy and higher inflation.

DXY


The technical picture looks weak after the index formed a double top above 96.90. The pullback is now aiming for the 95.80 psychological support. If this level fails to hold, the DXY could retreat towards 95.50. On the flip side, 96.95/97.00 remains the key resistance area to watch this week.

EURUSD

The currency pair jumped during the previous week and the medium-term uptrend will remain in place. However, Bulls will need to regain the 1.1360 level if they want to continue their ascent towards 1.1420. The pair traded with a bid tone for the entire previous week, with some weakness seen only on the last trading day of the week.

eurusd


For this week, 1.1250 will act as an initial cushion, any break below this level will open doors to 1.1220/00. On the flip side, the bullish breakout of 1.1360 is likely to push the EURUSD into a new trading zone, which may offer further buying opportunities until 1.1420/40.

DOW JONES

This week, Dow Jones is expected to be unstable over the festive period as the end of the transition period approaches on new year’s eve. On the other hand, the economic data is limited this week to the US pending home sales and weekly jobless claims reports.

cruse


For this week, 35,600 is the immediate support level, followed by 35,550. If the index breaks below 35,550, the slump will quickly extend toward the 35,000 mark. On the flip side, the first resistance at 36,200 any break above this level will open 36,500 minimum.

Read more- https://gulfbrokers.com/en/weekly-analysis-gold-usd-eurusd-and-dow-jones-18
 
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