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Weekly market review & outlook

A great trader is like a great athlete. You have to have natural skills, but you have to train yourself how to use them- Marty Schwartz.

Weekly market review & outlook

Last week the markets rebounded after the FED governors and Chairman Powell tried to calm market fears of an end to easy-money policies. Moving ahead to the last week of this month the investors remained cautious over the spread of the Covid Delta variant. The main attraction for this week the Friday’s US non-farm payrolls report and Wednesday’s UK GDP data.

On the earnings front, companies due to release their results will be the memory chip maker Micron, the home goods retailer Bed Bath & Beyond and the uniform rental firm UniFirst will be among those reporting earnings this week.

GOLD

The precious metal traded in a range between 1770 and 1795 for the last week. On Monday, the metal fell to a new session low but failed to break the key support area of 1770. At the time of writing, the gold price trades above 1783.

gold neww

For this week, the metal-supported at 1760 level, any break below this level will open the doors to 1750 and 1735. On the other upper side, if the price break and close above 1795, the next upside levels to watch 1805 and then 1820.

DOLLAR INDEX

The US dollar is one of the best performing G10 currency so far this month. While last week the king dollar traded lower against the major currencies after Fed Chair Powell pledged not to raise interest rates too quickly.    

DXY

Technically the overall trend still looks bearish after last week selling pressure and the short-term support still around 91.50. If the Index breaks and closes below 91.50 the next important support at 91.20/91.00. On the other upper side, the immediate resistance around 91.90 any break and close above this level will open 92.20 then 92.50.

GBPUSD

The currency pair rebounded back to above 1.3930 on Monday after it closed below 1.3900 psychological level on Friday following a dovish stance from the Bank of England. The central bank left monetary policy unchanged and warned against “premature tightening” in the policy.

euraud

This week if the price breaks below 1.3850 which would open doors towards this month low of 1.3785 and below that 1.3710/1.3680 is next. On the upper side, the first immediate resistance around 1.3940 and then 1.4030/80.

DOW JONES

Dow Jones and all other US indices closed higher last week boosted by the strong macroeconomic data and robust earnings results from NIKE and Accenture.  

cruse

This week if the bullish momentum continues the next upside levels to watch 34,850 (mostly high) and 35,000. On the downside, any meaningful pullback now seems to find some support near the 34,350 zones, below which the slide could further get extended towards the 34.000/33,750 region.

Trading is risky and your entire investment may be at risk. Please ensure that you fully understand the risks involved.

 

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