Weekly Overview 7/3/2022
Weekly overview includes the movements of the major pairs with gold and oil and the areas that traders should monitor during the week with the most important economic data for this week
US Dollar Index
The US dollar index rose last week from the level of 97.240 to 98.670, or about 1.50%, and also opened the trading session for this week with a rise of about 0.67%, due to the high demand for the dollar as a safe haven currency due to the geopolitical conditions that It is happening between Russia and Ukraine, and the US Federal Reserve is also close to raising interest rates, which supports the dollar index to rise as well.
Technically, the general trend of the dollar index is still bullish, and the next target is at the 100 level, due to the formation of new tops, and the breach of the accumulation area upwards
Gold
Gold rose last week from the level of 1888.777 to the level of 1971.090, or about 4.36% without any significant decline. It also opened the trading session for this week with a rise of 1.54% from the level of 1971.090 to the level of 2001.123. The main factor and driver of gold’s movements in recent times is the war of Russia and Ukraine, and the high demand for gold due to investors resorting to buying it as a safe haven
Technically, traders should monitor the level of 1882,551 as a support line, in case it is breached, it could be the first negative sign for gold, and if this level is maintained, the first target for gold is the level of 2065,990, i.e. the previous high
Crude Oil
With the intensification of geopolitical events, crude oil has touched its highest level of $125 since 2009. The main driver of oil is geopolitical events due to Russia's importance in producing energy and exporting it to other countries.
Crude oil opened at the beginning of this week on a positive price gap, technically it is possible to retreat to trade the prices of the price gap and then completed the bullish trend, and because of the strong rise on oil, we may witness a major correction to touch the 103.71 level and in the event of its breach, oil will decline to the level of 96 at least, and if Maintaining these levels, the oil target is at the level of 136.76
Euro againts US Dollar
The euro is trading against the US dollar at its lowest level since 2020, and it is close to 1.08753. The euro declined with the deterioration of economic conditions in Europe in general, and the rise in inflation in the euro area and the rise of the US dollar in particular.
The euro is in attractive areas to buy as an investment in the long term. Of course, traders should monitor the US Federal Bank in case the interest rate is raised, we may witness more decline for this pair, especially with the lack of clear monetary policy tightening from the European Central Bank, specifically Christine Lagarde
Technically, as we mentioned, the euro is in areas that are attractive to buy as an investment opportunity, of course, and in the medium-long term, the euro should maintain the 1.07657 level as the last support line before touching 1.06 levels. for this couple
British Pound against US Dollar
The GBP/USD pair opened at the beginning of last week on a negative price gap as a result of the strength of the US dollar, which pushed it to decline about 1.34%, and it completed the decline at the beginning of the week to trade near very important support levels that represent a dividing line in the event we will witness a rise again for this pair
The pair is trading near the support line located at 1.31584 and this area has been preserved by the pound since December 2021
US Dollar against Japanese Yen
The pair is trading in a horizontal area between the price of 116.368 as the resistance line and the price of 114.147 as the support line
Trading in a sideways zone for this pair is expected in this period due to the strength of the Japanese yen, which is a safe haven currency and the high demand for it, and the strength of the US dollar, which is also a safe haven currency
Australian Dollar against US Dollar
This pair is trading in an upward general direction, forming new tops and lower highs, and the first target for this pair is at the 0.75563 level
New Zealand Dollar against US Dollar
The pair breached the previous top at 0.68930, which indicates an ascension. The first target for this pair is at 0.70327, but the corrective decline is best for 0.66937 and 0.66661 levels, which in turn represent attractive areas to buy, and in the event of closing four candles Hours below 0.66533 cancels the positive scenario
The most important economic data for this week
Wednesday 9 March
Australian dollar: Reserve Bank of Australia Governor Lowe's speech
US dollar: job opportunities
US crude oil stocks
Thursday 10 March
Euro: European Central Bank rate decision
European Central Bank monetary policy report
US Dollar: Core CPI
Unemployment Complaint Rates
Friday 11 March
Canadian Dollar: Employment Change and Unemployment Rate
US Dollar: Michigan Consumer Confidence Index
