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Weekly analysis: Gold, USD, EURUSD and Dow Jones

This week the high inflation fears will dominate the market sentiment once again.

Weekly analysis: Gold, USD, EURUSD and Dow Jones

This week the high inflation fears will dominate the market sentiment once again. During the last week, the global stocks and commodities ended mostly in positive territory boosted by the Oil prices rally and robust Q3 earnings results.

On the earnings front, the US banking giants reported stronger-than-expected third-quarter financial results last week. Moving ahead to this week, Tesla, Snap, Netflix, Intel and IBM are due to release their last quarter reports.

GOLD

Gold price closed lower on Friday after the metal break above the psychological level of $1800 and the investors also booked some profits from a recent jump to a fresh monthly high.

gold neww

For this week, $1740 remains the key support area to watch, any break below this level will open $1720 minimum. On the upper side, If we can come out of Friday’s consolidation and press back above $1800 then the key resistance area to watch is $1820/35.

DOLLAR INDEX

DXY extends losses from the weekly high after the index had met stiff selling pressure at 94.50. On Friday, the greenback closed in red for the third day in a row.

DXY

The Index can rise if it is in the bullish trend zone above the 94.50 high, any break and close above this level the next levels to watch 94.80/95. Nevertheless, if it continues to fall near the 93.60 support, the slump will quickly extend toward the 93.40/10 marks.

EURUSD

The currency pair jumped during the previous week. However, Bulls will need to regain the 1.1640 level if they want to continue their ascent towards 1.1700. From a trading standpoint, the threat for a larger correction remains while below 1.1500 – ultimately a larger pullback may offer more favourable opportunities closer to uptrend support.

eurusd

This week, On the downside, 1.1560 will act as an initial cushion, any break below this level will open doors to 1.1530 and 1.1510.  On the flip side, the bullish breakout of 1.1640 is likely to push the EURUSD into a new trading zone, which may offer further buying opportunities until 1.1710.

DOW JONES

Dow Jones closed modestly higher on Friday, booking a third straight day of gains as a new quarter of the year began with stronger-than-expected earnings results.

cruse

This week as long as the index trades above 35,000 levels, the medium-term uptrend will remain in place. On the downside, 35,050 is the immediate support level, followed by 34,850. Further selling pressure will intensify only if the Index break below 34,850 levels.

 

Trading is risky and your entire investment may be at risk. Please ensure that you fully understand the risks involved.

 

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