Last week, most stock markets around the world ended higher boosted by stronger-than-expected US employment reports and corporate profits. The Bureau for Labor Statistics said 531,000 new jobs were created last month, compared to a market expectation of 450,000 and the unemployment rate down to 4.6%. Moving ahead to this week, the economic data is limited to inflation data for the US, Germany and China.
On the earnings front, the companies due to release their results will be the Data-mining and analytics firm Palantir Technologies (NYSE: PLTR) and the entertainment giant Walt Disney (NYSE: DIS) will be among those reporting earnings this week.
Gold price rallied more than 2% last week after the USD gives back some of the gains. However, considering the recent strong upside momentum, the US dollar movement will continue to play a vital role in the metal‘s future direction.
This week, the key resistance is located above $1830, a break above this level will confirm a possible move to $1842/60. On the downside, if the metal loses the $1790 handle, then we expect a move toward $1780/72.
The US dollar index ended slightly lower on Friday. On Friday, the Index jumped from the session low of 94.18 to almost the session high of 94.60 after a better than expected U.S. NFP job report. But soon after the NFP jump, the greenback retreated back to below 94.20. While the downside looks solid as traders should continue to accumulate on dips towards 93.70-93 in the near term.
For this week, the index is supported at 93.80 level, any break below this level will open the doors to 93.50 and 93.30. On the flip side, if the DXY breaks above 94.60 which would open doors towards the next resistance area of 94.80/95.
The euro has fallen to its lowest level against the US dollar in 15 month low on Friday after the upbeat US jobs survey released on Friday provided an additional boost to the dollar. The main attraction for EURO this week, the German Zew economic sentiment data on Tuesday and German inflation figures on Wednesday.
This week resistance for the EUR/USD appears to be around 1.1620. If the price break and closes above 1.1620, the next upside level to watch is 1.1640 then 1.1670. On the downside, if the pair break below the previous week low of 1.1510 the next immediate downside area is to watch 1.1490 and 1.1450.
Dow Jones reached another record high last week supported by stronger-than-expected macroeconomic data and positive data for Pfizer’s experimental pill against COVID-19. Pfizer said its Covid-19 pill reduced hospitalizations and deaths in high-risk patients by 89%.
Technically the overall momentum remains bullish throughout the last couple of weeks. This week, If the bullish momentum continues then the next upside level is to watch 36,490 and 36,600. On the downside, any meaningful pullback now seems to find some support near the 36,100/00 zones, below which the slide could further get extended towards the 35,800/500 regions.