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Weekly analysis: Gold, USD, EURUSD and Dow Jones

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Weekly analysis: Gold, USD, EURUSD and Dow Jones

Global markets ended mixed on Friday following the release of the Non-Farm Payrolls report. The data showed the US economy added 194K jobs last month, well below market expectations of 500,000 new jobs.

Moving ahead to this week, the Investors will shift their attention to major US banks' earnings. JPMorgan (NYSE: JPM) is scheduled to release results on Wednesday, followed by Citigroup (NYSE: C), Goldman Sachs (NYSE: GS), Wells Fargo (NYSE: WFC), Bank of America (NYSE: BAC), and Morgan Stanley (NYSE: MS) later in the week.


Gold price started the new week on a bearish note after the corrective growth of USD. The main drivers for the precious metal remain the US inflation data, rising US bond yields and the movement of the US dollar.

gold neww

For this week, $1,740 is the immediate support level, followed by the $1,720. If the pair breaks below the $1,720, the slump will quickly extend toward the $1,700 mark. On the upper side, gold is likely to find immediate resistance at $1,766, any break above the $1,764 level could lead the prices of the precious metal towards the next resistance levels of $1,776 and $1,780.


The greenback has closed almost flat on the weekly basis but the Index has remained in favour as a safe haven currency as investors believe the Federal Reserve will start reducing its massive stimulus scheme this year.


This week the resistance for DXY is around 94.50, any break over targets 94.80/95. On the flip side, if the Index breaks and close below 93.65 which would open doors towards 93.40 and below that 93.10 is next.


The key data’s for Euro and Dollar for this week will once again be the FOMC as we get the latest minutes from their most recent meeting and German ZEW Economic Sentiment. However, the US dollar movement will continue to play a vital role in this currency pair's future direction.


Technically the overall momentum remains bearish, the immediate support for the Euro stands near the psychological level of 1.1500. On the flip side, the first resistance at 1.1600 any break above this level will open 1.1640/80 minimum.


Dow Jones ended flat on Friday despite weaker-than-expected US NFP data. The market sentiment got a boost in the previous session after US Senate leaders worked together to approve a temporary lift to the debt ceiling.


This week support for the Dow Jones appears to be around 34,250, any break below this level will open 34,000 and 33, 800. On the other side, the important resistance to watch is 35,080 and 35,200.


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