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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.

Weekly review: Gold, USD, EURUSD and Dow Jones

Global markets started the week on a relatively quiet note on Monday as US stock markets will remain closed in observance of Independence Day. The volatility is expected to pick up later this week, the main attractions going to be the FED and ECB meeting minutes and the RBA will kick off this month's central banks policy meeting on Tuesday.

On the other hand, Non-farm payrolls will be the highlight of the final trading day of the week. Markets are expecting 300k job growth in June. The unemployment rate is expected to be unchanged at 3.6%.

GOLD

The precious metal fell sharply last week weighed down by a stronger dollar and hawkish FED view. Recently FED chair Powell noted that the central bank is fully committed to bringing prices under control even if doing so risks an economic downturn. Meanwhile, the gold price started this week slightly higher and recovered from some previous week's losses. A few of the key factors the gold traders should monitor this week is the FOMC meeting minutes and the US jobs report.

gold neww

For this week, $1,790 is the immediate support level, followed by $1,785. If the pair breaks below the $1,785, the slump will quickly extend toward the $1760 mark. On the upper side, gold is likely to find immediate resistance at $1,820, any break above the $1,820/22 level could lead the prices of the precious metal towards the next resistance levels of $1,830 and $1,835/40.

DOLLAR INDEX

The U.S. Dollar Currency Index, which tracks the greenback against six major currencies remained in demand last week. Moving ahead, this week the traders await the FED meeting minutes later this week, looking for clues on future rate hikes by the central bank. The USD traders focus will also turn to the Non-farm payroll report on Friday, which should prompt even more volatility.

DXY

This week, the first resistance is located around 105.80, a break above this level will confirm a possible move to 106.20/40. On the downside, any meaningful pullback now seems to find some support near the 104.60 zones, below which the slide could further get extended towards the 104.20 and 103.80 regions.

EURUSD

The currency pair retreats back to the key support area of 1.0360 last week after the buyers failed to hold the upside momentum above 1.0500. While on Friday, the pair ended slightly higher after the Inflation in the Euro area surged to a fresh record of 8.6% in June. This week the ECB meeting minutes are arguably the biggest focus for the euro traders as European Central bank President Christine Lagarde reaffirmed plans to raise the ECB's interest rates twice this summer.

eurusd

Technically the overall trend looks bearish after last week's heavy selling pressure and the medium-term support is still around 1.0350. If the currency pair breaks and closes below this level the next important support is at 1.0300. However, if the pair find some support above 1.0350 again we may see a short-term retracement to 1.0640 and then 1.0770.

DOW JONES

Dow Jones futures trade flat on Monday. At the end of last week, Dow mostly finished on a mixed note after the data showed on Friday the US manufacturing activity slowed more than expected in June. This week the Dow traders should turn their attention to the US employment report and away from concerns around the U.S. Federal Reserve tightening.

cruse

This week, the first resistance is located around 31,900, a break above this level will confirm a possible move to 32,300/400. On the downside, if the metal loses the 30,400 handles, we expect a move toward 30k. In the long term, watch for weekly closing above 33,300 or below 30,000 area, which will give a larger confirmation of direction in the long term.

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Weekly review: Gold, USD, EURUSD and Dow Jones

Weekly review: Gold, USD, EURUSD and Dow Jones

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