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Weekly review: Gold, USD, EURUSD and Dow Jones

Last week, global stock markets edged higher while the king dollar pulled back after a very strong run of gains. This week the volatility is expected to be extremely high and the FOMC meeting will be the highlight of the final week of this month.

Weekly review: Gold, USD, EURUSD and Dow Jones

Last week, global stock markets edged higher while the king dollar pulled back after a very strong run of gains. This week the volatility is expected to be extremely high and the FOMC meeting will be the highlight of the final week of this month. The US central bank is expected to raise rates by 75 basis points for the second consecutive month. However, traders will also be watching the latest US GDP and personal income data.

On the earnings front, the big tech giants scheduled to release their last quarter financial results this week will be Amazon, Apple, Alphabet and Meta.

GOLD

The precious metal has recovered impressively from last week’s 16-month low and bounced more than $50 supported by a weakening US dollar and weak global PMI data. Meanwhile, on Friday, the metal reversed from the early gains as the traders are cautious ahead of the US Federal Reserve monetary policy decision.

gold neww

Technically, the short-term trend remains supportive while If the US dollar regains further upside strength this week we could see an extension to the weakness in the precious metals. For this week, the first nearest support level is located at 1710. In case it breaks below this level, it will head towards the next support level which is located near 1700 and 1696. On the flip side, the first immediate resistance level for the metal is 1740, then the stronger resistance is 1745, which is important to be stable above it for a continuing rise to 1770 and 1782 levels.

DOLLAR INDEX

The US dollar, which is also often seen as the ultimate safe-haven currency, gave up gains and ended in negative territory last week. The recent pullback was fueled by the comments from FED policymakers. Federal Reserve policymakers pushed back against a bigger hike, both Atlanta Fed President Raphael Bostic and St. Louis’s James Bullard said they preferred a 75-basis-point interest rate increase at the Fed's July meeting.

DXY

Technically the current price action signals suggest that the medium-term bearish trend remains intact after the bulls failed to extend the rally. On the downside, the decline is more extensive, and it will be hard to rule out a run towards 105.70 and 105.20 if the bearish momentum continues. On the bullish side, the resistance stays above 107.40/50, and a break above this exposes the Index towards the 107.80 and 108.30 levels.

EURUSD

Last week the markets witnessed the euro recording some modest gains in relation to the US dollar supported by a larger interest rate hike from ECB. The central bank increased the main refinancing rate by 0.50% on Thursday, the market consensus was 0.25%. The currency pair also received additional buying pressure after the Russian gas flows re-started after maintenance works ended in Nord Stream 1 pipeline. In the coming week, again the trend of the euro would largely depend on the trend of the dollar index.

eurusd

For EURUSD this week, the first nearest support level is located at 1.0130. In case it breaks below this level, it will head towards the next support level which is located near 1.0100 then 1.0070. On the upper side, 1.0280 will act as an immediate and key hurdle while 1.0350 will be a critical resistance zone because above this, strong upside momentum is likely to dominate.

DOW JONES

The Dow Jones futures and all other US indices hold the previous week's gains and started the new week on a positive note. On Friday, the Dow ended slightly lower driven by weaker-than-expected second-quarter earnings results from the social media giants Twitter and Snap. This week the Dow traders will likely keep a look at the earnings reports from big tech firms including Amazon, Apple, Alphabet, Meta Platforms and Microsoft.

cruse

This week as long as the index trades above 31,300 levels, the short-term uptrend will remain in place. On the upper side, the first resistance is located around 32,300/400, a break above this level will confirm a possible move to 32,800 and 33,000. On the downside, 31,650 is the immediate support level, followed by 31,500. Further selling pressure will intensify only if the Index break below 31,300/200 levels.

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Weekly review: Gold, USD, EURUSD and Dow Jones

Weekly review: Gold, USD, EURUSD and Dow Jones

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