Analytic reviews

The Australian dollar fluctuated in a narrow range slanting back down during the Asian session to witness its bounce for the second consecutive session from its highest since June 11 against the US dollar amid the scarcity of economic data today Wednesday from the Australian economy and its American counterpart, the largest economy in the world.

At exactly 03:17 AM GMT, the Australian dollar versus the US dollar fell 0.03% to 0.6945 levels compared to the opening levels at 0.6947, after the pair achieved its lowest level during the trading session at 0.6933, while the pair achieved its highest at 0.6954.

On Tuesday, we followed the decisions and directions of monetary policy makers at the Reserve Bank of Australia that were taken during the activities of the meeting of the Australian Central Bank held on the seventh of July, during which the short-term reference interest rates were kept unchanged for the fourth consecutive meeting at 0.25%, which is the lowest level ever, which came in line with expectations.

The Australian Central Bank’s interest rate statement yesterday stated that the situation has stabilized recently and the decline has become less than expected and that the uncertainty about the health status and future strength of the economy makes many families and companies cautious and that this in turn affects consumption and investment plans, with an emphasis on not increasing the interest until Progress towards full employment, amid their confidence that inflation will be sustainably within the target range between 2% and 3%.

Technical analysis

The Australian dollar versus the US dollar is testing the moving average 50 and maintains its stability above it, and the positive effect of the symmetrical triangle pattern is still effective, pending the resumption of positive trades to visit the 0.7064 level as a next main station.

Consequently, we will maintain our bullish expectations for the upcoming period unless the 0.6870 level is broken and stability below it.

The expected trading range for today is between 0.6900 support and 0.7040 resistance.

Expected trend for today: bullish.

The single currency fluctuated the euro in a narrow range slanting up during the Asian session against the US dollar on the threshold of developments and economic data expected by the economies of the euro area, which includes the European Commission's disclosure of its economic forecasts for the summer and amid the scarcity of economic data today Wednesday by the US economy, the largest economy in the world.

At exactly 05:53 AM GMT, the euro pair rose against the US dollar by 0.04% to 1.1278 levels, compared to the opening levels at 1.1274 after the pair achieved its highest level during the trading session at 1.1283, while achieving the lowest at 1.1265.

We followed yesterday, Tuesday, the European Union's Trade Commissioner Phil Hogan expressed the fact that Brussels will take decisive measures against Washington in the event that the United States does not show a willingness to settle the long-standing dispute over supporting the aircraft industry, with his statement that America rejected Europe's proposals to settle the existing conflict and that It is hoped that the World Trade Organization will rule as soon as possible.

It is noteworthy that the dispute between the two parties about the support provided to the aircraft industry, especially for the European Airbus and Boeing Company of America, which erupted since 2004, and the trade organization gave Washington in advance the right to impose fees on European goods worth $ 7.5 billion in response to the support provided by Europe to Airbus, and it is expected By September, the organization will rule on the response that Europe can take about America's support for Boeing.

Technical analysis

The euro against the dollar trades stable above 1.1270, where the EMA50 meets this support to add more strength to it, while the stochastic is showing oversaturation in the selling, which supports the chances of bouncing up to resume the expected bullish direction in the intraday and short term, whose next target exists At 1.1420.

On the other hand, it should be noted that breaking 1.1270 and holding below it will put the price under negative pressure initially targeting 1.1175 areas.

The expected trading range for today is between 1.1200 support and 1.1380 resistance.

Expected trend for today: bullish.

Gold price futures fluctuated in a narrow range tilted toward decline during the Asian session to witness its bounce for the second session from the top since September 21, 2011 with the positive stability of the dollar index according to the inverse relationship between them amid the scarcity of economic data today Wednesday by the US economy and in the shadow of anxiety The increasing number of people infected globally with the coronavirus, especially in the continents of South and North America.

At exactly 04:38 AM GMT, gold futures contracts for next August delivery fell 0.12% to trade at $ 1,805.70 per ounce compared to the opening at $ 1,807.90 per ounce, knowing that the contracts started the session’s trading on a falling price gap after it concluded trading Yesterday at $ 1,809.90 an ounce, with the US dollar index rising 0.01% to 96.96 compared to the opening at 96.95.

We would like to point out that amid the increasing number of people affected by corona in South America, yesterday Brazilian President Javier Bolsonaro announced a coronavirus infection after symptoms appeared two days ago, and in North America, particularly in the United States, whose administration announced the withdrawal of America from the World Health Organization yesterday White House Health Adviser Anthony Fauci stressed that the Corona crisis is still serious and it has not yet reached its climax.

On the other hand, we have followed the World Gold Council’s disclosure of its semi-annual periodic report, which stated that the funds traded for gold recorded during the seventh monthly increase in their cash flow in June, adding 104 cubic tons of gold, equivalent to $ 5.6 billion or 2.7 % Of assets under management and that global net flows during the first half of 2020 amounted to $ 39.5 billion, outperforming the record increase in 2016.

In the same context, World Gold Council President Joan Carlos Artigas noted that "gold investment funds penetrated several record levels of this world, with investors seeking a safe haven from the economic downturn that created the Coronavirus" adding "to put the current flows in context during the first half of 2020, The flows of gold funds have strongly exceeded the central banks ’purchases of gold during 2018/2019.

Technical analysis

Gold price significantly resumed its positive trading yesterday evening to reach the outskirts of the first goal 1800.00, reinforcing expectations of the continuation of the main bullish trend, noting that we favor the continuation of the bullish tendency to achieve additional positive goals extending to 1825.00 then 1855.00.

Consequently, the positive scenario will remain valid for the next period supported by the EMA50, noting that stability above 1760.00 is important to achieve the proposed targets.

The expected trading range for today is between 1780.00 support and 1815.00 resistance.

Expected trend for today: bullish.

The US dollar fluctuated in a narrow range tilted to the upside during the Asian session against the Japanese yen after the developments and economic data that it followed from the Japanese economy and amid the scarcity of economic data today by the US economy, the largest economy in the world and in the shadow of concern about the increasing number of people infected with global coronavirus, especially in South and North America.

At 06:04 am GMT, the US dollar pair rose against the Japanese yen by 0.02% to 107.54 levels compared to the opening levels at 107.52 after the pair achieved its highest level during the trading session at 107.71, while achieving the lowest at 107.51.

We have followed on from the Japanese economy the release of the current account index reading, which showed that the surplus widened to a value of 0.82 trillion yen compared to 0.26 trillion yen last April, surpassing expectations that indicated the widening of the surplus to 0.71 trillion yen, and this came in conjunction with the release of the annual reading The bank lending index, which reflected an acceleration in growth to 6.2%, compared to 4.8% in April, beating expectations of 5.0%.

The Japanese Cabinet Office revealed an ECO Watchers statistic reading of the current and future conditions, which showed the contraction of the current situation has shrunk to 38.8 compared to 15.5 last May, outperforming the expectations that indicated the contraction will decrease to 24.7, as the reading of future conditions showed that the contraction has shrunk To 44.0 vs. 36.5, also beating expectations for a contraction to 24.1.

Otherwise, we followed up earlier this week, according to Japanese Economy Minister Yasutoshi Nishimura that the Japanese government agreed with experts that it is possible to lift more restrictions on Asia’s second largest and third largest economies in the world to contain the outbreak of the Coronavirus by July 10 Ongoing, stating that this decision will be adopted taking into account the comprehensive steps to prevent the spread of coronavirus in his country.

Technical analysis

The dollar against the yen is taking a new test for the level of 107.68 and maintains its stability below it, and we notice that the stochastic indicator provides clear negative signals on the four-hour time frame, waiting for the price to stimulate the resumption of the expected bearish direction for the next period, which targets the 106.44 level as a next station.

We point out that breaching 107.20 will facilitate the price's mission by achieving the mentioned target, while the expected decline will remain if the 107.68 level is not breached and stability remains with a daily closing above it.

The expected trading range for today is between 106.60 support and 108.00 resistance.

Expected trend for today: bearish.

The stock continues the movement within an upward channel that appears in our chart after the price ended the upward correction movement to return the price to rise again after it broke the resistance 209.40.

The current price movement occurs between the support level 195.00 and the resistance level 221.23 over the medium term.

While the main targets will be at the support level 195.00 and the resistance level 232.90.

 Moving averages are below the price (50 near support level 195.00 and moving average 20 near level 209.40) and increase the possibility of a further price increase.

While the stochastic is forming a negative crossover within the buying area, then it may pressure the price to retest the support before completing the bullish path.

The general direction of the movement: upward path

EURCHF

The support level 1.0618 is holding back sellers. Awesome Oscillator shows a strong bullish divergence, while the moving averages of Stochastic Oscillator are in the oversold range.

EURCHF rate online: monitor the price movement in real time.

Trading recommendations:

Buy when an ascending 1-2-3 pattern is formed, where wave 1 breaks through the inclined channel of the descending pattern.

Stop Loss under the support level 1.0618.

Target levels: 1.0697; 1.0762.

GBPUSD 

The pair is trading above the support level of 1.2535. It’s also supported by the hopes for Brexit resolution. However, the pair may decline if the market sentiment turns negative again.

Technical side:

The price is above the middle Bollinger indicator, above SMA 5 and SMA 14. RSI is located under the overbought zone and moves horizontally. Stoch is not informative.

GBPUSD rate online: monitor the price movement in real time.

Trading recommendations:

If the price doesn’t consolidate above 1.2535, it may drop back to 1.2455.