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Weekly review: Gold, USD, EURUSD and Dow Jones

This week the Investors will continue to monitor guidance and comments coming from central banks of major economies about the rising inflation. A series of inflation data from the UK, Canada, and Japan are scheduled across the week.

Weekly review: Gold, USD, EURUSD and Dow Jones

Global equities and precious metals extended the losses last week following the release of US inflation data on Wednesday. However, the markets slightly recovered from the previous week's sell-off while the overall momentum remains bearish as investors remained cautious about the rising inflation and geopolitical tensions. Moving ahead to this week, the Investors will continue to monitor guidance and comments coming from central banks of major economies about the rising inflation. A series of inflation data from the UK, Canada, and Japan are scheduled across the week.

On the earnings front, the companies due to release their results will be the Walmart, Home Depot, Target and Cisco will be among those reporting earnings this week.

GOLD

The safe-haven metal remains under pressure. The metal extends its decline on Monday, hitting $1787 the lowest level since late January. As of this writing, the gold price rebounded back to above $1800. Meanwhile, considering the recent strong bearish sentiment, the US dollar movement will continue to play a vital role in precious metal's future direction.

gold neww

For this week, $1,794 is the immediate support level, followed by $1,788. If the pair breaks below the $1,788, the slump will quickly extend toward the $1,780 mark. On the upper side, gold is likely to find immediate resistance at $1,816, any break above the $1,816 level could lead the prices of the precious metal towards the next resistance levels of $1,822 and $1,830.

DOLLAR INDEX

The US dollar index slightly retreated but remains close to the almost 20 year high reached during the last week. For this week, the main drivers for the Index will be the US retail sales and home sales data. It will also be an idea to keep a lookout for the comments from the FED speakers this week including FED members James Bullard and Mester.

DXY

In the short-term perceptive, the immediate bias will remain bullish. Considering the bullish momentum this week the resistance for DXY is around 105, any break over targets 105.40/50. On the other side, the immediate support is at 104.20 and any break will drag the oil price to 103.80/40 levels.

EURUSD

The euro fell to its lowest level since January 2017 at 1.0348 on Friday weighed down by the strong US dollar and the prospect of the European Union imposing a full ban on imports of Russian oil. Fundamentally the Euro is expected to be extra volatile this week due to a busy economic calendar and all eyes remain on the Wednesday Eurozone Inflation data.

eurusd

Technically the overall momentum remained bearish for the pair after the bears break below the 1.0500 area. This week Euro has key resistance at 1.0500 break above this resistance level then expect the market to zoom up to 1.0560 and 1.0640. On the downside, 1.0350 remains the crucial support area to watch, any break below this level will open doors to 1.0320/00.

DOW JONES

Dow Jones futures started the new week on a bearish note after the index failed to extend Friday’s rebound. This week the Dow traders should turn their attention to the retailer earnings season and away from concerns around the U.S. Federal Reserve tightening.

cruse

From a technical perspective, the dow is maintaining a negative bias according to the weekly chart. This week, If the bearish momentum continues the next key support area to watch is 31,900 then 31,600. On the upper side, If the index regains upside momentum and press back above 32,500 then the key resistance area to watch is 32,900 and 33,100.

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Weekly review: Gold, USD, EURUSD and Dow Jones

Weekly review: Gold, USD, EURUSD and Dow Jones

Global markets started the week on a relatively quiet note on Monday, the volatility is expected to pick up later this week, and the main attractions going to be the FED and ECB meeting minutes. The focus will also turn to the Non-farm payroll report on Friday, which should prompt even more volatility.