Back to market news

Weekly analysis: Gold, USD, EURUSD and Dow Jones

“I think investment psychology is by far the more important element, followed by risk control, with the least important consideration being the question of where you buy and sell.” Tom Basso.

Weekly analysis: Gold, USD, EURUSD and Dow Jones

This week is expected to be a remarkably busy one, the main attractions going to the Reserve Bank of New Zealand, Bank of Japan and Bank of Canada will hold their policy meeting later this week. On the other hand, the inventors anxiously awaiting the June US inflation numbers, which is set to be released on Tuesday.

On the earnings front, the banking giants JPMorgan Chase, Goldman Sachs, Wells Fargo, and Citigroup are amongst those reporting the second quarter financial results this week.


Gold price began the new on a bearish note. Last week the gold price ended higher supported by the weaker US dollar and slumping bond yields, the 10-year US Treasury yields have dropped to below 1.4% last week.

gold neww

This week the first support for the Gold appears to be around $1795, in the short-term any break below $1795 the next downside level to watch $1787/80. On the other upper side, the key resistance remains $1820 any break and close above this level will open $1832 then $1840.


The US dollar struggling to find the upside momentum after the index closed slightly lower last week. The main attraction for the US dollar this week, the June US inflation report and retail sales numbers.


This week, if the price breaks below 92.00 which would open doors towards the next support area of 91.50 and below that 91.30 is next. On the flip side, If the DXY holds above 92.00 there are chances it will eventually rise back to near the key resistance area of 92.70.


The currency pair holding the previous week gains. The expected trading range for the pair this week is between 1.1720 support and 1.1980 resistance.


For Euro, this week the immediate support near 1.1800. Any break and close below 1.1800, the next support levels to watch 1.1780 (last week low) then 1.1740/20. On the upper side, the first resistance at 1.1895 any break above this level will open 1.1910/30 minimum.


Dow Jones and all other US indices ended higher on Friday with their third straight weekly gain. While considering the strong bullish rally, this week the Dow expected to be extra volatile as the large-cap companies will be sharing their Q2 earnings reports.


This week resistance for the Dow appears to be around 35,250. On the downside, any meaningful pullback now seems to find some support near the 34,530/480, below which the slide could further get extended towards the 34,330/100 region.

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


Read more