The markets are expected to be extra volatile this week and the key events to watch the US Q4 GDP and U.S. Fed's two-day policy meeting, which ends on Wednesday. The investors will pay close attention to the update from Jerome Powell about the central bank’s view of the economic outlook as well as clues about future tapering.
On the earnings front, the US social media and Airlines companies reported stronger-than-expected second-quarter financial results last week. Moving ahead to this week, Tesla and big tech stocks Alphabet, Amazon, Apple and Facebook are due to release their last quarter reports.
The precious metal rebounded back to above 1810 on Monday after the metal found buyers again near the $1790 area. Moving ahead, the Gold traders and investors will closely monitor Wednesday’s FED decision for clues on the timing of forthcoming changes to Fed policy settings.
For this week, the metal-supported at 1790 level, any break below this level will open the doors to 1780 and 1765. On the other upper side, the immediate resistance at 1818 and any break will drag the metal to 1830/35 levels.
The greenback has closed almost flat on the weekly basis but the Index was remained in favour as a safe haven currency due to global growth fears and the rapid spread of the coronavirus delta variant. This week
On a weekly time, frame, the overall movement remained bullish for the Dollar. If the bullish momentum continues the next upside levels to watch 93.18 (Last week high) and 93.40. On the downside, any meaningful pullback now seems to find some support near the 92.50 zones, below which the slide could further get extended towards the 92.20/00 region.
Last week the currency pair ended in negative territory on dovish ECB talks. The European Central Bank said its new guidance would “underline its commitment to maintaining a persistently accommodative monetary policy stance to meet its inflation target”.
This week, EURUSD needs to stay above 1.1750; otherwise. 1.1700/1.1680 may be visible soon. On the upper side, 1.1830/50 the key resistance zones to watch, if the pair breaks and close above this area then the next supply level to watch around 1.1880/1.1910.
Dow Jones futures started the new week on a bearish note after the index closed higher for a fourth consecutive day on Friday. The sharp rebound from last Monday's drastic declines was boosted by strong Q2 corporate earnings results.
This week if the bullish momentum continues the next upside levels to watch 35,100 (Last week high) and 35, 300/550. On the downside, any meaningful pullback now seems to find some support near the 34,650 zones, below which the slide could further get extended towards the 34,500/33,350 region.
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