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Precious metals, major indices and commodities started the new week on a nervous note as the US rate hike worries still weighing on the markets. Overall, global markets continue to face uncertainty over the direction of inflation and interest rates, which are likely to lead the volatility in the near term.
Moving ahead, the markets have a lot of economic data to digest this week and the main highlights of the economic calendar will be the US durable goods orders data, ECB minutes and the latest PMI numbers from US, Eurozone and UK.
On the earnings front, the companies scheduled to release their last quarter financial results this week will be Zoom, Salesforce, Snowflake, Nio, Costco and Target.
GOLD
The precious metal extends the losses and pointed to a negative start to a new week. We expect that the Federal Reserve's aggressive monetary policy stance could weigh on precious metals in the near term. The volatility remains high this week as well, based on a list of important data and events. However, the main driver for the precious metal remains the movement of the US dollar.
From a technical perspective, gold maintains a negative bias according to the weekly chart. This week, If the bearish momentum continues then the next key support area to watch is $1795 then $1780. On the upper side, If the metal regains upside momentum and presses back above $1830 then the key resistance area to watch is $1848/55.
DOLLAR INDEX
The dollar index, which tracks the currency against key rivals ended for its third consecutive fourth gain. The bullish sentiment improved last week after the release of the Personal Consumption Expenditures (PCE) price index, the Fed’s preferred gauge of inflation unexpectedly came hotter than forecast, which raised market hopes that the Fed will need to continue raising interest rates. Fundamentally the greenback is expected to be extra volatile this week due to a busy US economic calendar.
Technically the overall momentum remained bullish over the last few weeks. On the bullish side, this week the resistance stays above 105.60, and a break above this exposes the index to the 106 level. On the flip side, rejection and pullback from the 105.60/80 resistance area allow for a dip towards 105, with 104.70/30 forming additional downside targets.
EURUSD
Euro suffered significant losses against the USD last week again and the currency pair has been moving lower since starting of this month, largely due to a broad strengthening in the US dollar. The overall sentiment remains under pressure as the seemingly inevitable divergence in US and European monetary policy was expected to continue supporting the dollar in the longer term. Some of the key factors the Euro traders should monitor this week is the ECB minutes and the latest consumer inflation figures from Germany and the Eurozone.
This week, the last week's low at 1.0530 is the immediate support level, followed by the 1.0500 psychological level. If the pair breaks and close below 1.0500 the slump will quickly extend toward the 1.0470/60 mark. On the other upper side, the immediate resistance is at 1.0580 then the key resistance levels to watch are 1.0610 and 1.0640.
DOW JONES
Dow trading marginally flat on Monday and the upside pressure clearly weakened amid a solid ceiling in place. Dow and other main US indices finished in negative territory on Friday as investors continued to bet on further Federal Reserve tightening to bring decades-high inflation under control. This week, Dow trader's focus will turn to the ISM manufacturing data on Wednesday as well as the earnings results from retailers including Costco, Target and Macy’s.
This week, Dow can rise if it rebounds back to above the 33,500 level again, any break and closes above this level the next upside levels to watch are 33,750 and 34,000. Nevertheless, if it continues the bearish momentum, the slump will quickly extend toward the 32,450 and 32,100/000 marks.
Read more - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-69
Moving ahead, the markets have a lot of economic data to digest this week and the main highlights of the economic calendar will be the US durable goods orders data, ECB minutes and the latest PMI numbers from US, Eurozone and UK.
On the earnings front, the companies scheduled to release their last quarter financial results this week will be Zoom, Salesforce, Snowflake, Nio, Costco and Target.
GOLD
The precious metal extends the losses and pointed to a negative start to a new week. We expect that the Federal Reserve's aggressive monetary policy stance could weigh on precious metals in the near term. The volatility remains high this week as well, based on a list of important data and events. However, the main driver for the precious metal remains the movement of the US dollar.
From a technical perspective, gold maintains a negative bias according to the weekly chart. This week, If the bearish momentum continues then the next key support area to watch is $1795 then $1780. On the upper side, If the metal regains upside momentum and presses back above $1830 then the key resistance area to watch is $1848/55.
DOLLAR INDEX
The dollar index, which tracks the currency against key rivals ended for its third consecutive fourth gain. The bullish sentiment improved last week after the release of the Personal Consumption Expenditures (PCE) price index, the Fed’s preferred gauge of inflation unexpectedly came hotter than forecast, which raised market hopes that the Fed will need to continue raising interest rates. Fundamentally the greenback is expected to be extra volatile this week due to a busy US economic calendar.
Technically the overall momentum remained bullish over the last few weeks. On the bullish side, this week the resistance stays above 105.60, and a break above this exposes the index to the 106 level. On the flip side, rejection and pullback from the 105.60/80 resistance area allow for a dip towards 105, with 104.70/30 forming additional downside targets.
EURUSD
Euro suffered significant losses against the USD last week again and the currency pair has been moving lower since starting of this month, largely due to a broad strengthening in the US dollar. The overall sentiment remains under pressure as the seemingly inevitable divergence in US and European monetary policy was expected to continue supporting the dollar in the longer term. Some of the key factors the Euro traders should monitor this week is the ECB minutes and the latest consumer inflation figures from Germany and the Eurozone.
This week, the last week's low at 1.0530 is the immediate support level, followed by the 1.0500 psychological level. If the pair breaks and close below 1.0500 the slump will quickly extend toward the 1.0470/60 mark. On the other upper side, the immediate resistance is at 1.0580 then the key resistance levels to watch are 1.0610 and 1.0640.
DOW JONES
Dow trading marginally flat on Monday and the upside pressure clearly weakened amid a solid ceiling in place. Dow and other main US indices finished in negative territory on Friday as investors continued to bet on further Federal Reserve tightening to bring decades-high inflation under control. This week, Dow trader's focus will turn to the ISM manufacturing data on Wednesday as well as the earnings results from retailers including Costco, Target and Macy’s.
This week, Dow can rise if it rebounds back to above the 33,500 level again, any break and closes above this level the next upside levels to watch are 33,750 and 34,000. Nevertheless, if it continues the bearish momentum, the slump will quickly extend toward the 32,450 and 32,100/000 marks.
Read more - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-69
