Weekly review: Gold, USD, EURUSD and Dow Jones



Global markets are shaky as investors continued to monitor developments around the Russia-Ukraine war, the delegations from Ukraine and Russia will meet for possible peace talks on the Belarus border on Monday afternoon. Meanwhile, Ukraine already launched a case against Russia at the United Nations’ highest court on Sunday accusing Moscow of planning genocide and asking for the court to intervene to halt the invasion.

The key data release this week is of course the nonfarm payrolls report on Friday. The December NFP data is expected to show that the economy added more than 450k jobs in December while the unemployment rate declined to 3.9%.

On the earnings front, the companies due to release their results will be Zoom, Lucid, Novavax, Target and the Snowflake will be among those reporting earnings this week.


The precious metal has risen to a one-and-a-half-year high of $1,974 last week due to the current inflation and Russia launched a full-scale military invasion in Ukraine. While later the metal dropped back to below $1900 as the market had already priced it in when the event occurred and the investors started booking profits. The safe-haven metal opened with a bullish gap on the first day of a new week but the metal retreated back to below the $1900 psychological level after the buyers failed to hold the upside momentum.

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On the bullish side, the resistance stays above $1930, and a break above this exposes the metal towards the $1945/50 level. On the flip side, rejection and pullback from the $1930 resistance allow for a dip towards $1900, with $1880 and $1865 forming additional downside targets.


The US dollar index started the new week on a high note. The safe-haven US dollar has displayed a lot of volatility last week as investors are now moved from risky investments during uncertain political times to safer investments. The Index corrected lower back to below 96.80 on Friday following reports that Russia’s President Putin was considering returning to the negotiating table.


The short-term technical picture looks weak after the index failed to break above the previous week's high. The pullback is now aiming for the 96.80 psychological support. If this level fails to hold, the DXY could retreat towards 96.50. On the flip side, 97.45/80 remains the key resistance area to watch this week.


The Euro-to-Dollar dropped to as low as 1.1105 last week but recovered since then. 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 expected trading range for the pair this week is between 1.1070 support and 1.1420 resistance. The currency pair opened with a gap down on Monday. However, a firm break of 1.1200 again will dampen this bearish view and turn bias back to the upside for 1.1260 resistance. On the flip side, a move below the 1.1130 level will have the bears targeting the lower level of 1.1100/1.1070.


Dow jones erased from the early losses and closed slightly higher on Friday after the data on US GDP and the labor market published Thursday confirmed the continued recovery of the American economy. Q4 GDP grew from 6.9% to 7.0%. For this week, the main drivers for the Dow remain the fresh developments surrounding the Russia-Ukraine tension, US jobs report and the Fed Chair Jerome Powell's semiannual testimony to Congress.


For this week, 33,200 is the immediate support level, followed by 32,800. If the index breaks below 32,800, the slump will quickly extend toward the 32,400 mark. On the flip side, the first resistance at 33,700 any break above this level will open 34,100/200 minimum.

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