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Weekly analysis: Gold, USD, EURUSD and Dow Jones

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Weekly analysis: Gold, USD, EURUSD and Dow Jones

The main attraction for this week is Investors waiting for the US Q3 GDP growth rate, which could trigger volatility in the market. On the other hand, the October ECB meeting this Thursday is one of the other main events of the week. The traders will be carefully monitoring the ECB statement after the latest report revealed the Eurozone inflation expectations hit their highest levels in years.

On the earnings front, Tesla and Netflix reported stronger-than-expected earnings last week while the parent company of Snapchat, Snap failed to impress Wall Street. Moving ahead to this week, it's a big week for tech company earnings, with Facebook, Microsoft, Google parent Alphabet, Apple and Amazon all reporting earnings this week.

GOLD

Gold price failed to close above the $1800 psychological level on Friday following the comments from US Federal Reserve Chairman Jerome Powell about tapering. While considering the last last two weeks upside momentum the metal can surely rebound in the short term if market sentiment stabilises.

gold neww

Technically, the overall movement has remained bullish. In the coming days, if the bullish momentum continues the next upside levels to watch $1815 then $1830. On the downside, any meaningful pullback now seems to find some support near the $1778 zones, below which the slide could further get extended towards the $1772/65 region.

DOLLAR INDEX

After a strong rally in September, the US dollar struggling to find the upside momentum. The Index ended lower for the second consecutive week while on Friday the greenback slightly rebounded after the FED chairman said – Fed Would Raise Rates if It Sees Serious Risks of Higher Inflation Expectations.

DXY

This week, the key resistance is located above the last week high around 94.20, a break above this level will confirm a possible move to 94.50/60. On the downside, if the Index loses the 93.30 handles, then we expect a move toward 92.80.

EURUSD

EURO ended mixed on Friday as investors grew more cautious ahead of a key European Central Bank meeting this week. Beyond the ECB meeting, the focus will be on the Eurozone inflation and GDP readings due on Friday.

eurusd

For this week, the key support area is around 1.1570. On the upper side, the short-term resistance at 1.1670 any break above this level will open 1.1700 then 1.1740. On the other side, if the price break and close below 1.1570, the next immediate support to watch 1.1530/00.

DOW JONES

Dow Jones closed slightly lower on Friday after reaching the record high. Overall the momentum remains bullish throughout the last week. This week, the index may continue to remain highly volatile amidst the ongoing earnings season.

cruse

This week the resistance for Dow Jones is around 36,000, any break over targets 36,200/300. On the flip side, if the Index breaks and close below 35,150 which would open doors towards 35,000/34,950 and below that 34,600 is next.

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