Globally, the markets were cautious last week driven by hawkish comments from ECB and FED policymakers. Moving ahead to the last week of this month the investors and traders have become increasingly concerned about several ongoing issues including rising inflation pressures and China’s worsening Covid situation. On the other hand, this week Investors will likely keep a look at the economic releases which include the Bank of Japan rate decision, Eurozone and US GDP and US PCE index data.
On the earnings front, the companies due to release their results will be the Amazon, Microsoft, Alphabet, Apple and Twitter will be among those reporting earnings this week.
The safe-haven metal trading marginally lower on Monday and the upside pressure clearly weakening amid a solid ceiling in place, the near-term bias points to precious metal weakness in the week ahead, when volatility is likely to be higher than usual due to soaring inflation would prompt central banks to tighten monetary policy abruptly.
For this week, the first nearest support level is located at $1900. In case it breaks below this level, it will head towards the next support level which is located at near $1880. However, a fresh demand for gold can be anticipated once the metal rises above the $1940 resistance. A break above this level will confirm a possible move to $1965.
The US dollar index remains extra volatile. The greenback remained in demand last week after FED chairman Jerome Powell signaled aggressive interest rate hikes in the months ahead. This week in the US, the main event of interest is US first-quarter GDP data and PCE expenditure price index.
This week, the key resistance for DXY is located above 101.80, a break above this level will confirm a possible move to 102/102.20. On the downside, any meaningful pullback now seems to find some support near the 101 then 100.70, below which the slide could further get extended towards the 100.20/100 region.
The currency pair opens the week broadly lower after Emmanuel Macron's victory in France's presidential election. The main important events to watch for EURO traders this week are German IFO business climate data, Eurozone and German GDP numbers.
Technically the overall momentum remains bearish. For this week, the first key support area is around 1.0750. if the price break and close below 1.0750, the next immediate support is to watch 1.0700 and 1.0680. On the upper side, the short-term resistance at 1.0850 any break above this level will open 1.0880 then 1.0930.
The Dow futures started the new on a bearish note on growing concerns of a sharp hike in US interest rates. Last week, the index ended sharply lower, some of the main factors that contributed to the Thursday and Friday sell-off are the hawkish comments from the FED chair Jerome Powell and rising inflation. This week Investors will likely keep a look at the earnings reports from big tech firms including Amazon, Apple, Alphabet, Meta Platforms and Microsoft.
The Index can rise if it rebounds back to above the 34,100 level, any break and closes above this level the next levels to watch 34,400/600. Nevertheless, if it continues to fall, the slump will quickly extend toward the 33,200 and 33,000 marks.
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