Weekly review: Gold, USD, EURUSD and Dow Jones



Global equity and cryptocurrency markets ended higher last week as investors digested mounting uncertainties around Russia-Ukraine talks. Moving ahead to this week, there are no important economic reports scheduled to be released in the U.S. this week except the Durable goods orders data which is set to be released on Thursday. On the other hand, Investors should also closely monitor the speeches from the Fed policymakers, ECB President Christine Lagarde and Fed Chair Jerome Powell.

On the earnings front, the companies due to release their results will be Nio, Adobe, and Nike will be among those reporting earnings this week.


The safe-haven metal remained under pressure despite the weaker US dollar after the US Federal Reserve officials hinted at the possibility of six more increases this year and three more next year. Meanwhile, the metal was moderately up on Monday morning in Asia, with investors turning to safe-haven assets as concerns over the impact of the new wave of Covid infections triggered fresh lockdowns in China.

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Technically the current price action signals suggest that the 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 1912 and 1900/1890 if the bearish momentum continues. On the flip side, the first immediate resistance near 1950 followed by 1980/2000.


The US dollar index which measures the greenback against major peers retreats following the announcement of the first interest rate hike since 2018 by the Federal Reserve. The Index is expected to fall further this week if the last week's selling pressure continues.


Technically the overall momentum remained bearish for the Index after the bulls failed to extend the rally. In the short term, if the price breaks below 97.70 it would open doors towards 97.10. On the bullish side, the resistance stays above 98.70, and a break above this exposes the Index towards the 99.10/30 level.


EURUSD traded with a bid tone for the entire last week, with some weakness seen only on the Friday after the King dollar regained some upside momentum. The pair has shown strength so far this week supported by the modest dollar weakness. This week the Euro traders are likely to return their focus back to fundamentals with manufacturing PMI data from Germany and Eurozone on Wednesday and Friday’s German IFO business climate report.


For this week, 1.1000 remains the key support area to watch, any break and close below this level will open 1.1950 minimum. On the upside, the nearest resistance level for the pair is located at 1.1090. In case EURO gets above this level, it will head towards the next resistance at 1.1145. A successful test of the resistance at 1.1145 will open the way to the test of the resistance at 1.1200/20.


The Dow Jones futures started the new week slightly lower after Ukraine’s rejection of Russia’s demand to surrender Mariupol hints at intensifying war conditions. During the last week, the Dow Jones posted strong weekly gains supported by hopes for a peaceful resolution of the conflict between Russia and Ukraine.


The technical scenario is absolutely bullish after the last week's strong bullish sentiment. While considering the recent upside momentum the Dow currently hovers near the short-term trendline resistance. In case the pair manages to settle above the trendline, it will gain upside momentum and head towards the next resistance level at 35,050 and 35,500. On the downside, in the short-term the first immediate support at 34,450 followed by 34,050.

Read more- https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-22