Global equities and commodities started the new week slightly higher on Monday as investors took a breather following the previous week's sell-off. During the last week, the as global equities plunged on concerns that high inflation and monetary policy tightening will fuel an economic slowdown. This week is expected to be a busy one, the main focus on the FOMC minutes on Wednesday as well as the earnings results from retailers including Costco and Macy’s.
On the earnings front, the companies due to release their results will be the Nvidia, Zoom, Costco and Macy‘s will be among those reporting earnings this week.
The safe-haven metal after making a low at $1788, staged a smart recovery back to above $1860. The geopolitical risk spurred buying in precious metals despite imminent rate hike expectations from US FED. The U.S. Federal Reserve will release the minutes from its last meeting later in the week which may keep volatility high in bullion prices.
For this week, $1875/80 remains the key resistance to watch. However, as long as the metal is trading above $1850, a pullback rally is likely to continue up to $1870/72. On the downside, the first nearest support level is located at $1848. In case it breaks below this level, it will head towards the next support level which is located at near $1836 then $1830.
The US dollar index extend the losses on Monday after the index closed last week for its worst week since early February. The recent bearish momentum was driven by the disappointing US macroeconomic data. The biggest driver for the greenback this week is the minutes from the latest Federal Open Market Committee (FOMC) Minutes and the US GDP figures.
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 102.30 it would open doors toward 101.10. On the upper side, the first immediate resistance is around 102.85 and then 103.30.
The euro is showing solid growth against the US dollar during the Asian session on Monday. The currency pair bounced to a fresh two weeks high of 1.0680 on Monday during the European session boosted by the release of stronger-than-expect German IFO business climate data. The German business climate index increased to 93.0 from 91.9 in April. The Euro also received strong upside momentum after the ECB took a significant hawkish turn last week. Moving ahead, the economic data is limited this week to the German GDP and Eurozone PMI figures.
Technically If the bullish momentum continues then the next upside level is to watch 1.0690/1.07 and 1.0750. On the flip side, a breakdown through 1.0570 would negate that bias and suggest a test of the 1.0500 and 1.0470 support regions.
Major stock indices and Dow jones continued to slide lower last week as the global trend and the risk-off mood dominates. However, the Dow started this week slightly higher but the overall momentum remains bearish as Investors remain worried that a more aggressive move by major central banks and weak earnings results from the retailer giants Walmart and Target.
For Dow this week, the first nearest support level is located at 31,200. In case it breaks below this level, it will head towards the next support level which is located at near 30,900 then 30,500. On the upside, the key resistance is located for the Dow at around 31,800/900, a break above this level will confirm a possible move to 32,200/300.
Read more technical analysis here - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-31