Euro & Pound On A Streak Of Gains Against Dollar, Spot Gold Hit New High - Doo Prime News
Doo Prime News > Analysis > Market Insight > Euro & Pound On A Streak Of Gains Against Dollar, Spot Gold Hit New High

1. Forex Market Insight  

EUR/USD 

The euro closed higher against the dollar for the second week in a row, rising by 0.51% to 1.1376 in the final trading, hitting a new high since 15th November to 1.1386.

Investors will next be watching the pace of the European Central Bank’s withdrawal from the stimulus measures during the pandemic, arguing that the ECB will be less hawkish than the Federal Reserve.

The ECB insists that prices are pushed up by temporary factors such as supply shortages, rising energy prices and base effects. The ECB expects that once the impact of the global supply-demand imbalance subsides, the problem of inflation will also be reduced.

Technical Analysis:

(EUR/USD 1-hour chart) 

Execution Insight: 

Today, pay attention to the suppression of the 1.1378-line. If the euro runs stably below the 1.1378-line, then pay attention to the support at 1.1338 and 1.1267 below. If the euro breaks through the 1.1378-line, then pay attention to the suppression at 1.1401 and 1.1421.

GBP Intraday Trend Analysis 

Fundamental Analysis: 

The pound also posted its second straight weekly positive against the dollar, ending by 0.85% higher at 1.3523 and hitting a new high since 10th November 2021 at 1.3550.

Meanwhile, no new outbreak restrictions have been introduced in England until the end of 2021, and the government is now waiting for more evidence on whether the health service system can cope with high infection rates.

Technical Analysis: 

(GBP/USD 1-hour chart) 

Execution Insight: 

The pound today is mainly focused on the 1.3522-line. If the pound runs below the 1.3522-line, then pay attention to the support at 1.3450 and 1.3409. If the pound runs above the 1.3522-line, then pay attention to the suppression at the 1.3574-line.

2. Precious Metals Market Insight

 

Gold 

Fundamental Analysis: 

Spot gold advanced for a third straight week, closing up by 1.53% to $1,829.42 per ounce and hitting a new high since 22nd November 2021 to $1,830.33 per ounce as the dollar index closed lower for a second straight week, refreshing the month’s low to 95.568.

A surge in cases of the omicron variant sparked investor anxiety. But gold prices posted their worst annual performance in six years, falling more than 3.5%, as the global economy generally recovered from the impact of the outbreak and demand for safe-haven gold diminished.

Technical Analysis:

(Gold 1-hour chart) 

Trading Strategies: 

Today, gold pays attention to the 1831-line. If the price of gold runs stably below the 1831-line, then pay attention to the support of the 1819 and 1812 positions. If the price of gold breaks through the 1831-line, it will open up further upward space. At that time, pay attention to the suppression of 1844.

3. Commodities Market Insight 

WTI Crude Oil 

Fundamental Analysis: 

On Friday, Brent oil futures fell by $1.75 to settle at $77.78 per barrel. The cumulative gains of 50.5% in 2021 were the largest since 2016.

On the other hand, the introduction of the vaccine accelerated the economic restart and stimulated global consumption, while production was affected. Even if the global Covid-19 cases reach a record high, oil prices will still perform outstandingly in 2021.

Technical Analysis:

(Crude oil 1-hour chart) 

Trading Strategies: 

Today, oil prices are paying attention to the 76.89-line. If the oil price runs below the 76.89-line, then it will still pay attention to the support at the 75.04 and 73.52 positions. If the oil price breaks through the 76.89-line, then pay attention to the suppression of the 78.92-line.

Disclaimer  
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