This week the coronavirus fears will dominate the market sentiment once again. Last week, the global stocks erased earlier weekly gains ended lower on Friday due to concerns about the spread of high infections Delta virus variant and inflationary pressure. As per the latest reports, the delta variant COVID-19 virus has been detected in more than 100 countries globally. On the other hand, Thursday’s ECB meeting will likely be the highlight of this week economic calendar.
Gold price closed lower on Friday as investors booked profits from a jump to a fresh monthly high of $1833 during the last week. Demand for gold, which is considered a safe haven in times of uncertainty, has benefited from the rising inflationary pressures and spreading the Delta variant virus as investors reduce their risk exposure.
This week, if the bullish momentum continues then the next upside level is to watch is $1836 and $1845. On the downside, any meaningful pullback now seems to find some support near the $1800 zones, below which the slide could further get extended towards the $1790/82 region.
The dollar index, which tracks the U.S. currency against six major peers, enjoying the upside rally. The US dollar remains in favour as a safe haven currency as long as worries about the coronavirus cases increasing remain a possibility.
This week the resistance for DXY is around 93.00, any break over targets 93.20/45. On the other side, the immediate support is at 92.40 and any break will drag the Index to 92.20 and 92.00 levels.
The currency pair continuously trading weaker against the US dollar. The main attraction for Euro this week, the European Central Bank decides policy on Thursday.
For Euro, this week the immediate support is near 1.1750. Any break and close below 1.1750, the next support levels to watch 1.1730 then 1.1700. On the flip side, the first resistance at 1.1870 any break above this level will open 1.1900/30 minimum.
Wall Street saw a strong day of selling across the board on Friday. The market sentiment was severely impacted after Covid-19 cases and deaths in the U.S. are rising again. Dow Jones Index closed more than 300 points lower on Friday.
Dow Jones futures slip to a fresh session low on Monday. Overall the movement remained bearish throughout today and the Index currently trading below 34,350. In the short term if the bearish momentum continues the next downside levels to watch 34200/000 and 33,700. On the upper side, the first immediate resistance around 34,600 and then 34,850.
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