Global markets were under huge pressure on Monday after the massive jump in energy and commodity prices as Russia’s invasion of Ukraine continues. The sell-off in equities has spilled over to Asian markets, with all major indices in the red and US futures trading weaker.
This week Investors will likely keep a look at the economic releases which includes the release of the U.S. consumer price index (CPI) and European central bank decision, both the events scheduled to be released on Thursday.
On the earnings front, the companies due to release their results will be Oracle, Stitch Fix, and Crowdstrike will be among those reporting earnings this week.
The precious metal hit the key psychological level of $2000 on Monday. However, the metal struggling to hold above the $2000 levels as the investors remain concerned about the Federal Reserve’s tightening monetary policy continues with the central bank expected to aggressively raise interest rates this year.
For this week, the first nearest support level is located at $1968. In case it breaks below this level, it will head towards the next support level which is located at near $1950 then $1935. On the upper side, $2020 is the key resistance to watch, any break above this level will open $2040/70 minimum.
The US dollar index remains extra volatile. The greenback was one of the strongest currency pairs in the last couple of weeks and reached its highest level since May 2020. The bullish rally was driven by the worries about global growth, higher inflation and the geopolitical crisis.
This week as long as the index trades above 98.60 levels, the medium-term uptrend will remain in place. On the downside, 98.00 is the key support level to watch this week, followed by 97.70. Further selling pressure will intensify only if the Index break below 97.40 levels.
EURUSD extend the decline on Monday. On Friday, the currency pair fell to a 16 -month low against the US dollar after Russia launched a military attack on a nuclear power plant in Ukraine. The strong bearish momentum is also driven by weaker-than-expected PMI data from Eurozone and Germany. For this week, the main drivers for the Euro will be the ECB decision and the US dollar movement.
Technically the overall sentiment remains bearish. However, a fresh demand for EURUSD can be anticipated once the pair rises above the 1.10 resistance. A break above this level will confirm a possible move to 1.1245. In this case, On the other hand, the immediate support prevails at 1.0800, further breakout of 1.0800 can lead the pair towards 1.0770/10 levels.
Dow Jones futures started the new week on a bearish note. Last Friday, the index ended lower despite the release of a better-than-expected US employment report. The data showed the US added 678,000 jobs to the economy in February and the Unemployment Rate fell to 3.8% from 4%.
The Index can rise if it rebounds back to above the 33,600 level, any break and closes above this level the next levels to watch 34,200 and 34,700. Nevertheless, if it continues to fall, the slump will quickly extend toward the 32,800 and 32,300 marks.
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