Weekly review: Gold, USD, EURUSD and Dow Jones


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Markets in the US, UK, Australia and New Zealand remained closed on Monday to mark the New year holiday. However, the first week of 2023 is expected to be a busy one, with the main focus on the highly anticipated inflation data from Eurozone and Germany. Investors will also be keeping an eye on the FOMC minutes on Wednesday as well as the US nonfarm payroll data for December on Friday. The December NFP data is expected to show that the economy added more than 200k jobs in December while the unemployment rate stays at 3.7%.


The precious metal ends the last week of 2022 in positive territory on expectations of slower rate hikes by the Federal Reserve. For this week, the main drivers for the precious metal remain the movement of the US dollar, the US jobs report and the resurgence of coronavirus cases.

This week, the key resistance is located around $1835, a break above this level will confirm a possible move to $1845/48. On the downside, any meaningful pullback now seems to find some support near the $1810 zones, below which the slide could further get extended towards the $1800 and $1796 regions.


The U.S. Dollar Currency Index, which measures the greenback against a basket of six currencies plunged to the lowest level since June on Friday. During December, major currencies remained stronger than the US dollar throughout the month. For this week, traders and investors will also pay attention to the important data for the USD this week, U.S. Federal Reserve's minutes of the latest meeting on Wednesday and the U.S. unemployment report for December are due Friday.

For USD, the first nearest support level is located at 103.30/20. In case it breaks below 103.20, it will head towards the next support level which is located near 102.80/60. On the upper side, 103.80 will act as an immediate and strong hurdle while 104.10 will be a critical resistance zone because above this, bulls are likely to dominate for the short term.


EURUSD started the first week of 2023 on a bullish note supported by hawkish comments from the ECB policymakers and a softer dollar. This week the Euro traders are likely to return their focus back to fundamentals with the German employment data, and German and Eurozone retail sales. On the other hand, traders should also monitor the latest inflation report from Germany and Eurozone which will offer a crucial guide to the interest rate outlook.

The technical scenario is absolutely bullish after the last few weeks of bullish sentiment. While considering the strong bullish momentum the currency pair may find strong resistance above 1.0780 this week. On the downside, good support is expected at the 1.0600 area, with this zone having held last week while further down, demand is also expected around 1.0570, which will act as the next area of support.


US stock markets closed on Monday in observance of the New Year’s holiday so Tuesday, January 03 will mark the first trading day of 2023 for Dow Jones and other US indices. The key data for the Dow this week will once again be the FOMC as we get the latest minutes from their most recent meeting and the US Nonfarm Payrolls report.

Technically the overall momentum remains mixed and the initial bias remains neutral for the upcoming week. The key resistance is located for the pair around 33,500, a break above this level will confirm a possible move to 33,900/34,000. On the downside, the immediate support will be the same as last week's low near 32,800, below which the slide could further get extended towards 32,400 and then 32,200/000.

Read more with charts here - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-61