Back to market news

Weekly analysis: Gold, USD, EURUSD and Dow Jones

"To win in the markets, we need to master three essential components of trading: Sound psychology, a logical trading system, and an effective risk management plan.”

Weekly analysis: Gold, USD, EURUSD and Dow Jones

This week is expected to be an extra volatile week as investors waiting for feedbacks from the worlds largest central banks Federal Reserve, the Bank of Japan and the Bank of England about the timing of the bank's asset purchase tapering.

U.S FOMC MEETING – SEP 21-22, 2021: The US Federal Reserve meeting will start on Tuesday, the two-day policy meeting that will conclude on Wednesday. FED will discuss when may be the appropriate time for the central bank to begin its bond-buying tapering.

BANK OF JAPAN MEETING – SEP – 22, 2021: The Bank of Japan (BoJ) will be holding its monetary policy meeting on Friday.

BANK OF ENGLAND MEETING – SEP – 23, 2021: The BoE, which meets on Thursday, the central bank widely expected to keep interest rates steady. Meanwhile, several market participants expect that the BoE could start a tighter monetary policy cycle sooner than the Fed.

On the earnings front, the companies due to release their results will be the athletic apparel giant NIKE and the shipping company FEDEX will be among those reporting earnings this week.

GOLD

The precious metal slightly rebounded from the early session lows. During the last week, the metal plunged despite a softer-than-expected reading on consumer prices for August on Tuesday.

gold neww

Technically the overall momentum remained bearish throughout the last week. If the metal continues to fall, the next important support level is $1735 and $1720. On the upper side, the immediate resistance at $1767 (Friday high) a break above this level will confirm a possible move to $1776/80.

DOLLAR INDEX

The US dollar surged to a fresh monthly high of 93.40 on Monday supported by raising uncertainty on when the Federal Reserve will start cutting stimulus. Technically the overall momentum is expected to remain bullish for the Index after the bulls break above the 93.00 area.

DXY

This week the resistance for DXY is around 93.50, any break over targets 93.75/90. On the downside, any meaningful pullback now seems to find some support near the 93.10 zones, below which the slide could further get extended towards the 92.80/50 region.

EURUSD

EURO started the new week on a bearish note. The currency pair remains under pressure after the release of German PPI data. The data showed the producer prices increased by 1.5% in August, also above forecasts of 0.8%. At the time of writing, the pair trades near the 1.170 psychological level.

 eurusd

For this week, the pair supported at 1.1685 level, any break below this level will open the doors to 1.1660 and 1.1630. On the other upper side, the immediate resistance around 1.1770 any break and close above this level will open 1.1800 then 1.1840.

DOW JONES

Dow Jones futures along with S&P 500 futures and Nasdaq 100 futures, turned lower early Monday following the last week sell-off. The recent bearish momentum is driven by weaker-than-expected economic data and concerns about the coronavirus Delta variant.

cruse

For Dow, this week the immediate support is near 34,000. Any break and close below 34k, the next support levels to watch 33,900 and 33,840. On the upper side, the first resistance at 34,500 any break above this level will open 34,700/780 minimum.

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

 

Read more