Weekly review: Gold, USD, EURUSD and Dow Jones


US dollar index started the new week on a positive note and gold prices remain unchanged in today's early trade while Euro extended the previous week’s pullback. It's undoubtedly a huge week ahead and all eyes will be turning to the FOMC, BOJ and ECB meetings
  • Federal Reserve monetary policy decision: Wednesday, July 26
  • European Central Bank policy meeting: Thursday, July 27
  • Bank of Japan policy meeting: Friday, July 28
The key focus, however, will remain on the most anticipated Federal Reserve’s interest rate decision and statement after the latest inflation report from the US came out softer than expected, sparking sentiments that the Feds might be close to the end of its tightening campaign. The Federal Reserve will begin a two-day meeting on Tuesday with expectations mounting that they will lift rates by at least 0.25%. Other than central bank meetings, the investors should also closely monitor the key economic releases which include the German IFO business climate, German CPI, US GDP and PCE inflation data.

On the earnings front, the companies scheduled to release their last quarter financial results this week will be Meta, Microsoft, Alphabet, Snap, Boeing, Visa, Mastercard, Chevron and Intel.


The precious metal ended modestly lower after a volatile session on Friday. The metal traded with bullish sentiment during the first half of the week but it failed to extend the rally on Thursday following the release of upbeat US jobless data, which encouraged the Federal Reserve to continue its monetary tightening policy. Fundamentally the metal is expected to be extra volatile this week due to a busy economic calendar and all eyes remain on Wednesday's US Federal Reserve's projections.

For this week, the first nearest support level is located at 1955. In case it breaks below this level, it will head towards the next support level which is located near 1945 and then 1930. However, a fresh demand for the metal can be anticipated once the gold price rises above the 1975 resistance. A break above this level will confirm a possible move to 1988 and then 1993.


The dollar index, which measures the currency against six major peers rebounded and remained in demand last week as investors positioned ahead of the FED meeting. The rebound was also largely fueled by the hotter-than-expected weekly jobless claims data, the unexpected drop in the number of jobless claims for the week, raising expectations of a further increase in U.S. interest rates. The FED decision is the key release this week for Dollar. The USD traders will also be watching the latest US PCE inflation data which is set to be released on Friday.

DXY reached a fresh 2-week high of 101.40. However, the index needs to stay above 101.40/50 to have a chance to develop upside momentum in the near term. If the price breaks and closes above this area, the next upside level to watch is 101.70 then 102. On the downside, the decline is more extensive, and it will be hard to rule out a pullback towards 100.40 and 100 if it fails to extend the upside momentum.


EURUSD extended the decline on Monday following the release of disappointing service PMI data from Germany and the Eurozone. At the same time, the downside momentum was limited and supported by expectations of a hawkish ECB. This week, Euro traders and investors are waiting for the European Central Bank meeting on Thursday. The market participants anticipate the central bank to continue with aggressive interest rate hikes at Thursday’s meeting, but the investors are looking forward to ECB president Christian Lagarde's press conference.

From a technical perspective, the overall momentum remains mixed now after the bulls failed to extend the rally. For this week, the first key support level is located at 1.1050. In case it breaks below this level, it will head towards the next support level which is located near 1.1020/00. On the upper side, 1.1120 will act as an immediate and strong hurdle while 1.1180 will be a critical resistance zone because above this, bulls are likely to dominate.


Dow Jones and other major indices were flat on Friday after the strong rally as investors and traders took a cautious stance ahead of the most anticipated US FED decision. This week, the main driver for the Dow remains the FOMC statement and ongoing second-quarter earnings season, Some of the largest US tech companies will report their latest quarterly numbers this week including Meta, Alphabet, Microsoft and Intel.

From a technical perspective, in the short-term the 35,180 area of confluence has recently been held as a firm support, failure to defend the mentioned support levels has the potential to drag the index further towards the 35,000 and 34,900 support zones. On the upper side, in case the pair manages to settle above 35.400, the upside momentum will continue and head towards the next resistance level at 35,650 and 35,800.

Check out the original article here with charts - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-88