The first week of 2022 is expected to be a busy one, the main focus on the highly anticipated OPEC+ meeting on Tuesday. Investors will also be keeping an eye on the FOMC minutes on Wednesday as well as the US nonfarm payrolls data for December on Friday. Meanwhile, Markets in the UK, Australia and New Zealand are remained closed on Monday to mark the New year holiday.
On the earnings front, the companies due to release their results will be the retail giant Bed Bath & Beyond (NASDAQ: BBBY) and the drugstore and pharmacy chain Walgreens Boots Alliance (NYSE: WBA) will be among those reporting earnings this week.
The safe-haven metal ended high for the fourth consecutive week supported by the rapid spread of the Omicron variant and the prevailing concerns over rising inflation. For this week, the main drivers for the precious metal remain the movement of the US dollar, US jobs report and the resurgence of coronavirus cases.
On the bullish side, the resistance stays above $1832, and a break above this exposes the metal towards the $1840/45 level. On the flip side, rejection and pullback from the $1865 resistance allow for a dip towards $1820, with $1815 and $1800 forming additional downside targets. $1780 is psychological support that becomes available if the bulls fail to defend $1800.
The biggest driver for the greenback this week is the minutes from the last FED meeting and the NFP figures. The December NFP data is expected to show that the economy added more than 400k jobs in December while the unemployment rate declined to 4.1%.
Technically the overall momentum remained bearish for the Index after the bulls failed to extend the rally. In the short term, if the price breaks below 95.50 which would open doors towards 95.10. On the upper side, the first immediate resistance is around 96.00 and then 96.30.
The currency pair ended in positive territory for the second consecutive week. This week the Euro traders are likely to return their focus back to fundamentals with today’s German manufacturing PMI and Tuesday’s German retail sales and employment report.
Technically If the bullish momentum continues then the next upside level is to watch 1.1400 and 1.1430. On the flip side, a breakdown through 1.1300 would negate that bias and suggest a test of the 1.1270 and 1.1250 support regions.
Dow Jones ended the previous session slightly in the red as investors turned cautious amid record rises in coronavirus cases. The key data’s for the Dow this week will once again be the FOMC as we get the latest minutes from their most recent meeting and US Nonfarm Payrolls report.
The technical scenario is absolutely bullish after the last two weeks bullish sentiment. While considering the recently bullish momentum the Dow may find strong resistance again above 36,600. On the downside, in the short-term the first immediate support at 36,250 followed by 36,000/35,900.
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