Weekly Technical Outlook Summary

In this week's analysis, Senior Technical Strategist Michael Boutros provides insights into the key technical levels for major currencies, commodities, and equity indices as geopolitical tensions rise due to the ongoing war in Iran. The report highlights critical support and resistance levels for the US Dollar (DXY), Japanese Yen (USD/JPY), and Gold (XAU/USD), among others.

US Dollar (DXY)

The US Dollar Index is currently facing resistance at the 78.6% retracement level of the November decline, with a significant level at 99.36/38. A breakout has stalled, and initial support is identified at 98.55/69. A daily close above 99.38 is necessary to confirm a resumption of the uptrend, with potential targets at 100.16/34.

Japanese Yen (USD/JPY)

The USD/JPY pair is encountering resistance near the January high-day close at 158.44/88. Immediate support is at 157.70, with broader bullish invalidation at 156.37/68. A close above 158.88 is required to trigger the next leg of the advance, while the upcoming release of Japan's Q4 GDP figures is also anticipated.

Gold (XAU/USD)

Gold prices are under pressure despite the geopolitical turmoil, trading just above the 38.2% retracement level of the February advance. Key support is at 4894, with a significant resistance level at 5343/78. A breach above this level is necessary for a renewed bullish outlook, while the market remains sensitive to inflation data and war headlines.

Economic Calendar

This week, traders should be aware of several key economic releases, including the US Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE), which are expected to influence market sentiment and monetary policy outlooks.

Overall, the report emphasizes the importance of monitoring these technical levels and economic indicators as the market navigates through uncertain geopolitical conditions.