Weekly review: Gold, USD, EURUSD and Dow Jones



Global stocks ended the last week lower after a bigger-than-expected rise in U.S. consumer prices fanned fears about an increase in inflationary pressure. Consumer prices in the US surged by 8.5 percent in March, the fastest pace since 1981.

This week, traders will now turn their attention to the Q1 earnings as more companies report their latest financial results. Meanwhile, the markets in the UK and Europe are remained closed on Monday to mark the Easter Holiday.

On the earnings front, the companies due to release their results will be the Bank of America, Netflix, Snap and Tesla will be among those reporting earnings this week.


The safe-haven metal ended high for the second consecutive week supported by a lack of optimism surrounding talks between Russia and Ukraine. The medium-term uptrend will remain in place. However, the Bulls will need to regain the $2000 level if they want to continue their ascent towards new highs.

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On the bullish side, the resistance stays above $2000, and a break above this exposes the metal to the $2020/40 level. On the flip side, rejection and pullback from the $2000 resistance allow for a dip towards $1960, with $1945/40 forming additional downside targets.


The dollar index, which tracks the currency against key rivals closed above 100.50 last week. The recent strong bullish sentiment was fuelled by the upward surprise in consumer prices. Moving ahead, this week, the economic data is limited this week to the US existing home sales and weekly jobless claims reports.


This week, the key resistance for DXY is located above 100.95, a break above this level will confirm a possible move to 101.20/40. On the downside, any meaningful pullback now seems to find some support near the 100.20/100 zones, below which the slide could further get extended towards the 99.70/40 region.


The Euro plunged to a 23-month low against the US dollar driven hawkish stance of the European central bank and the European states continue to discuss the extent of sanctions on Moscow. ECB kept rates unchanged, as widely expected, and said it plans to end asset purchases in Q3. The biggest driver for the Euro this week is the inflation data from Eurozone and the latest PMI data from Germany and Europe.


Technically the current price action signals suggest that a short term bearish trend remains intact. On the downside, if the bearish momentum continues the key support areas to watch are 1.0750 and 1.0700. On the upper side, in case the pair manages to settle above 1.0940, it will gain upside momentum and head towards the next resistance level at 1.1050 and 1.1130.


The Dow Jones traded lower during the whole last week driven by worse than expected March US retail sales data and mixed Q1 earnings results from big US banks. The dow futures started the new week on a bearish note as the risk-off mood dominates.


For this week, 34,050 is the immediate support level, followed by 33,900. If the index breaks below 33,900, the slump will quickly extend toward the 33,500 mark. On the flip side, the bullish breakout of 34,900 is likely to push the index into a new trading zone, which may offer further buying opportunities until 35,050 and 35,400.

Read more - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-26