Global markets sharp sell-off in the last Friday triggered by over a new wave of Coronavirus outbreak. This week would be critical in determining how the countries going to battle against the new variant. The WHO has also given the variant, B.1.1.529, the name of Omicron.
On the other hand, one of the important events for this week will be the OPEC+ meeting. This event will take place on Thursday and we could expect to hear comments from the OPEC leaders throughout the event.
On the earnings front, the companies due to release their results will be the cloud-based data storage and analytics service provider Snowflake (NYSE: SNOW) and the Cybersecurity technology company Crowdstrike (NASDAQ: CRWD) will be among those reporting earnings this week.
The safe-haven metal is expected to trade higher if the metal holds above $1755 as the ongoing threat posed by the new COVID-19 variant may keep the precious metal afloat as the outbreak continues to drag on the global supply chain.
This week, the key resistance for gold is located above $1815, a break above this level will confirm a possible move to $1832/40. On the downside, if the metal loses the $1755 handle, then we expect a move toward $1735/15.
In this week, USD traders are expected to be highly concerned about the US economic health going forward. On the other hand, the traders and investors will also pay attention to the important event for the USD this week, the US employment report on Friday.
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 95.70 which would open doors towards 95.50 and 95.00. On the upper side, the first immediate resistance can be found at 96.50 and then 96.90.
During the last week, the currency pair rebounded from a fresh 16- month low and ended in positive territory. The currency pair holding the previous week gains. At the time of writing, the pair trades steady above 1.13000.
This week, the first resistance is located for the pair around 1.1320, a break above this level will confirm a possible move to 1.1370/1.1420. On the downside, any meaningful pullback now seems to find some support near the 1.1250 zones, below which the slide could further get extended towards the 1.1220/00 region.
Dow Jones futures slightly rebounded on Monday during the European session after the Index sank 2.5% to near levels not seen since October 14th on Friday. While the Index retreats back to near the previous week low after US FED chair Jerome Powell told the US Congress on Monday that the Omicron variant poses a threat to the economy.
Technically the overall trend still looks bearish after last week selling pressure. This week if the bearish momentum continues the next downside levels to watch 34,700 and 34,400. On the flip side, the first immediate resistance around 35,430 and then 35,550.
Trading is risky and your entire investment may be at risk. Please ensure that you fully understand the risks involved.