Today's forecasts for EUR/USD, GBP/USD, FTSE100, Dow Jones, and gold

EUR/USD

Finalized inflation figures for Italy are due out later today. However, the main driver for the Euro will most likely be market risk sentiment and the reopening timeline of the Eurozone’s economy. The EURUSD currecy pair still trades above key 1.2110 support level, with a sustained move beyond the 1.2150 to 1.2170 resistance area, to trigger an acceleration to the upside with 1.2220 as nearest target.

GBP/USD

The British Pound recorded strong gains last Friday closing the week just shy of 1.41 but maintaining a slightly bullish tone from a technical perspective, with 1.4150 as nearest target ahead of UK unemployment figures due tomorrow.

FTSE 100

The FTSE 100 rebounded higher on Friday with the bullish tone set to continue today as the UK government's road map out of lockdown enters its third stage with indoor socializing resuming. Technically speaking, however, the UK blue-chip index still trades below the 7065-resistance level, therefore a follow-through day is needed to keep upside momentum strong. Alternatively, a move below support at 7030 may trigger a bearish signal with the 200-period SMA around 6935 as next support.

Dow Jones

Wall Street shrugged off a miss in US Retail Sales numbers closing broadly higher on Friday with technology stocks leading the rebound after slower-than-expected retail spending growth cooled tapering fears. However, following last week’s sell-off triggered by inflation jitters, the Dow Jones index still trades below crucial resistance at 34575 with a break above that resistance needed to indicate the presence of more buyers, otherwise fading momentum, as per the RSI value pointing lower, may drag the index back to the 200-period SMA around 34000.

Gold

Higher inflation expectations, weaker prints on US University of Michigan’s Consumer Sentiment along with lower-than-expected US Retail Sales data, all weighed down on the greenback, in turn raising demand on the yellow metal with $1860 and $1870 as closest resistance targets on the upside. Focus remains on Fed Speakers this week (Clarida today) ahead of Wednesday’s FOMC minutes.