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Weekly analysis: Gold, USD, EURUSD and Dow Jones

“Don’t worry about what the markets are going to do, worry about what you are going to do in response to the markets.” – Michael Carr

Weekly analysis: Gold, USD, EURUSD and Dow Jones

Global markets ended mixed last week after annual consumer inflation in the US accelerated to a three-decade high. Retail sales data from China and US, Federal Reserve speakers and the Eurozone and UK inflation numbers will be in focus this week.

On the earnings front, the companies due to release their results will be the world’s largest retailer Walmart ( NYSE: WMT), semiconductor maker Nvidia (NASDAQ: NVDA) and the e-commerce giant Alibaba (NYSE: DIS) will be among those reporting earnings this week.

GOLD

The Safe-haven metal spiked to its highest level since June despite the renewed strength in the US dollar. The recent strong upside momentum is driven by hotter-than-predicted U.S. inflation data.

gold neww

Technically the overall momentum remains bullish throughout the last couple of weeks. This week, If the bullish momentum continues then the next upside level is to watch $1870 and $1900. On the downside, any meaningful pullback now seems to find some support near the $1840/32 zones, below which the slide could further get extended towards the $1820/15 regions.

DOLLAR INDEX

The dollar index, which tracks the U.S. currency against six major peers ended for its best week in almost five months. The Index rose to a fresh 15-month high after the latest inflation reading renewed pressure on FED policymakers to lift interest rates.

DXY

This week, If the bullish momentum continues then the next upside level is to watch 95.25 and 95.60. On the flip side, a breakdown through 94.55 would negate that bias and suggest a test of the 94.20 and 94.00 support regions.

EURUSD

Last week, the currency pair hits its lowest level since July 2020. On Friday, the currency pair attempted to bounce but it failed to extend the rebound after the eurozone economic data showed the industrial production fell for the second straight month in September.

eurusd

This week, the key support appears to be around 1.1400, a break below this level will confirm a possible move to 1.1380/60. On the flip side, the first resistance at 1.1870 any break above this level will open 1.1900/30 minimum.

DOW JONES

Wall Street ended mixed on Friday as traders worried about continued high inflation bad for the market. Dow Jones remained under pressure for the whole last week except the Friday gains. For Dow, the main attraction for this week is the US retail sales data and Wal-Mart earnings report on Tuesday.

cruse

Dow Jones futures started the new week in a mildly bearish manner. In the short term, if the bearish momentum continues the next downside levels to watch 35,910/800 and 35,500. On the upper side, the first immediate resistance is around 36,200 and then 36,500.

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