Analytic reviews

Gold prices fluctuated in a narrow range tilted to the upside during the Asian session amid the decline of the US dollar index according to the inverse relationship between them on the cusp of developments and economic data expected on Tuesday by the American economy and amid market pricing to reopen many global economies and hopes to reach a vaccine for the Coronavirus at a time Later this year.

At exactly 03:43 am GMT, gold futures contracts for next August delivery rose 0.06% to trade at $ 1,754.00 per ounce compared to the opening at $ 1,753.00 per ounce, knowing that the contracts started the trading session on a falling price gap after it concluded trading Yesterday at $ 1,753.50 an ounce, with the US dollar index down 0.09% to 99.67 compared to the opening at 99.76.

Investors are currently awaiting by the US economy, the largest economy in the world, to disclose data on the housing market with the release of the house price index, which may explain the slowdown in growth to 0.6% compared to 0.7% in February, in conjunction with the release of the annual reading of the house price index, which It may also show a slowdown in growth to 3.4% versus 3.5% in February.

This comes before the release of the new home sales index, which may explain the decline in the decline to 15.4% for 492 thousand homes compared to 21.9% at 627 thousand homes in March, in conjunction with the disclosure of the consumer confidence index reading, which may reflect a widening to 87.1 compared to 86.9 In April, they reached the participation of Federal Reserve Board member and Minneapolis Federal Reserve Chairman Neil Kakkari in a panel discussion on the Corona Virus pandemic.

Other than that, we followed this weekend the Japanese Prime Minister Shinzo Abe to lift the state of emergency in the last five provinces in his country out of the 47 provinces, explaining that Japan managed to control the coronavirus, adding that preventing the spread of infection during the restart of the economy It is a difficult challenge and there is a possibility of re-imposing the state of emergency again if the infection with the deadly virus spreads.

Technical analysis

The gold price remains stuck between the pivotal levels of support 1725.90 and resistance that is now dropping to 1742.00, and therefore, our neutral stance will remain in place until the price confirms the penetration of one of these levels to determine the following targets more accurately.

We remind you that breaching the mentioned support will put the price under negative pressure mainly targeting the test of 1691.10 level, while breaching the resistance will constitute a positive catalyst that supports chances of returning to the main bullish path that its next main target is located at 1810.00.

The expected trading range for today is between 1705.00 support and 1750.00 resistance.

Expected trend for today: It depends on the levels mentioned in the report.

Gold prices fluctuated in a narrow range tilted to the upside during the Asian session amid the decline of the US dollar index according to the inverse relationship between them on the cusp of developments and economic data expected on Tuesday by the American economy and amid market pricing to reopen many global economies and hopes to reach a vaccine for the Coronavirus at a time Later this year.

At exactly 03:43 am GMT, gold futures contracts for next August delivery rose 0.06% to trade at $ 1,754.00 per ounce compared to the opening at $ 1,753.00 per ounce, knowing that the contracts started the trading session on a falling price gap after it concluded trading Yesterday at $ 1,753.50 an ounce, with the US dollar index down 0.09% to 99.67 compared to the opening at 99.76.

Investors are currently awaiting by the US economy, the largest economy in the world, to disclose data on the housing market with the release of the house price index, which may explain the slowdown in growth to 0.6% compared to 0.7% in February, in conjunction with the release of the annual reading of the house price index, which It may also show a slowdown in growth to 3.4% versus 3.5% in February.

This comes before the release of the new home sales index, which may explain the decline in the decline to 15.4% for 492 thousand homes compared to 21.9% at 627 thousand homes in March, in conjunction with the disclosure of the consumer confidence index reading, which may reflect a widening to 87.1 compared to 86.9 In April, they reached the participation of Federal Reserve Board member and Minneapolis Federal Reserve Chairman Neil Kakkari in a panel discussion on the Corona Virus pandemic.

Other than that, we followed this weekend the Japanese Prime Minister Shinzo Abe to lift the state of emergency in the last five provinces in his country out of the 47 provinces, explaining that Japan managed to control the coronavirus, adding that preventing the spread of infection during the restart of the economy It is a difficult challenge and there is a possibility of re-imposing the state of emergency again if the infection with the deadly virus spreads.

Technical analysis

The gold price remains stuck between the pivotal levels of support 1725.90 and resistance that is now dropping to 1742.00, and therefore, our neutral stance will remain in place until the price confirms the penetration of one of these levels to determine the following targets more accurately.

We remind you that breaching the mentioned support will put the price under negative pressure mainly targeting the test of 1691.10 level, while breaching the resistance will constitute a positive catalyst that supports chances of returning to the main bullish path that its next main target is located at 1810.00.

The expected trading range for today is between 1705.00 support and 1750.00 resistance.

Expected trend for today: It depends on the levels mentioned in the report.

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 on the Japanese economy and in the wake of the lifting of the state of emergency in Japan and on the cusp of developments and economic data expected today by the American economy and amid the aspiration to the Japanese government's adoption for more Of stimulus later this week.

At 06:05 am GMT, the US dollar pair rose against the Japanese yen by 0.12% to 107.84 levels compared to the opening levels at 107.71 after the pair achieved its highest level during the trading session at 107.92, while achieving the lowest at 107.68.

We have followed on from the Japanese economy the annual reading of the services price index, which showed that growth slowed to 1.0% compared to 1.6% last March, worse than expectations at 1.3%, and this came before we witnessed the disclosure of industrial sector data with the release of an overall index reading Industrial activities, which showed a widening decline to 3.8% compared to 0.7% last February, beating expectations that indicated a decline of 3.9%.

Up to the Bank of Japan’s disclosure of the core annual CPI reading which showed 0.1% contraction versus 0.1% growth in the previous annual reading for March, contrary to expectations for stability at zero levels, and that comes hours after Japanese Prime Minister Shinzo Abe announced On lifting the state of emergency in his country, explaining that Japan was able to control the epidemic of coronavirus.

This came, hours after the report, which touched upon the fact that the Japanese government is considering adopting a new stimulus package worth 100 trillion yen ($ 929 billion) that will mostly consist of the financial aid program for companies that were affected by the Corona pandemic, and it is expected that the package will be funded with a second additional budget for the fiscal year. That started in early April, as part of record spending plans of $ 1.1 trillion to mitigate the negative economic consequences of the virus.

It is expected that the additional budget of the Japanese government will include 60 trillion yen to expand the loan program provided by state and private financial institutions to Japanese companies affected by the repercussions of the outbreak of the Corona Virus. It is expected that the Japanese government will agree during the cabinet meeting tomorrow, Wednesday, on this additional budget, which It will also include support to help companies pay rent and wages when business closes.

On the other hand, investors are anticipating the US economy to disclose housing market data with the release of the house price index, which may explain the slowdown in growth to 0.6% compared to 0.7% last February, in conjunction with the release of the annual reading of the house price index, which may appear Also, growth slowed to 3.4% from 3.5% in February.

This comes before the release of the new home sales index, which may explain the decline in the decline to 15.4% for 492 thousand homes compared to 21.9% at 627 thousand homes in March, in conjunction with the disclosure of the consumer confidence index reading, which may reflect a widening to 87.1 compared to 86.9 In April, they reached the participation of Federal Reserve Board member and Minneapolis Federal Reserve Chairman Neil Kakkari in a panel discussion on the Corona Virus pandemic.

Technical analysis

The dollar versus the yen got a positive close above 107.68 despite the recent weak trading, which supports the continuation of the expected upside scenario in the intraday basis, regular within the bullish channel that appears in the picture, which targets the level of 109.22 as the next main station, while recalling the importance of stability above 107.35 to continue Expected rise.

The expected trading range for today is between 107.00 support and 108.60 resistance

Expected trend for today: bullish

#JNJ

The support level 144.00 holds back sellers. Awesome Oscillator shows a bullish divergence, while Stochastic Oscillator signals oversoldness. An inclined channel is formed on a descending wave pattern.

Trading recommendations:

Buy when an ascending wave pattern is formed, where wave A breaks through the inclined channel of the descending pattern.

Stop loss: 144.00.

Target levels: 147.00; 150.53; 153.07.

The #JNJ rate online: monitor the movement of the pair in real time.

USDRUB

The pair is still trading below the strong resistance level of 72.50. It’s under pressure because of the renewed demand for risk assets as countries continue to ease restrictions, as well as the rising crude oil prices. Another positive factor for the ruble are currency sales by the Central Bank in accordance with a fiscal rule: the bank sells the currency when the oil price is below $40 per barrel.

Technical side:

The price is below the middle Bollinger band, below SMA 5, but still above SMA 14. RSI is below the 50% level and moves horizontally. Stoch are above the 50% level and turn downwards.

Trading recommendations:

Sell the pair after it crosses 71.20 with a probable fall to 70.00.

The USDRUB rate online: monitor the movement of the pair in real time.

USDCHF 

The 0.9700 support level is holding back sellers. A descending truncated pattern has formed, which may be a wave B of an ascending pattern of a larger wave level. Stochastic Oscillator signals oversoldness.

Trading recommendations:

Buy while an ascending pattern is forming, where wave A breaks through the inclined channel of the descending truncated pattern.

Stop loss below the support level of 0.9700.

Target levels: 0.9736; 0.9750; 0.9780.

The USDCHF rate online: monitor the movement of the pair in real time.

The Australian dollar pair is trading against the US dollar when supporting the main bullish channel that appears in the picture, and gets continuous positive support from the EMA50, which supports the chances of resuming the main bullish trend, whose next target is located at 0.6685.

Consequently, we will maintain our positive expectations for the coming period provided that the price maintains its stability above 0.6515, as breaking it will push the price to test the most important support 0.6407 before any new positive attempt.

The expected trading range for today is between 0.6480 support and 0.6600 resistance.

Expected trend for today: bullish.

The single currency fluctuated the euro in a narrow range slanting toward decline, to witness its bounce for the third consecutive session from the top since the beginning of May when it tested the highest since early April against the US dollar on the cusp of developments and economic data expected today Monday by the German economy The largest economies in the euro area and amid the scarcity of economic data earlier this week from the US economy due to the Memorial Day holiday.

At exactly 05:35 am GMT, the euro against the US dollar fell 0.06% to 1.0891 levels, compared to the opening levels at 1.0897, after the pair achieved its lowest level during the trading session at 1.0887, while it achieved the highest at 1.0909, knowing that The pair started the trading session on a falling price gap after it concluded the trading last week at 1.0901 levels.

The markets are looking to Germany to reveal the IFO reading of the business climate, which may show a widening of 78.3 compared to 74.3 last April. Otherwise, we followed last Friday the European Central Bank revealed the minutes of its last meeting, which decided to stay on Interest rates are at zero levels and the marginal lending rate is set at 0.25%, in addition to keeping the deposit interest rate negative -0.50%.

The minutes of the meeting also touched on the fact that the European Central is moving forward on the bond purchase program by 20 billion euros a month in addition to temporary purchases of 120 billion euros, noting that the lending program proved its importance in maintaining the stability of bond markets in the euro area and that the European Central is ready to amend Lending programs and other tools at next June's meeting.

In the same context, the record stated that the measures taken by the European Central provided strong cash liquidity in the markets with warning that the monetary policy alone is not sufficient to face the crisis and that there is a need for financial policies, especially that there are fears that the crisis will continue for an extended period of time that will have an effect On inflation, amid indicating that the region's economic growth is expected to resume after the outbreak of the Corunavirus outbreak.

On the other hand, investors expecting later this week by the US economy to disclose the second reading of the GDP index, which may confirm the contraction of the largest economy in the world by 4.8%, as the previous preliminary reading showed and against a growth of 2.1% in the fourth quarter, while The second reading of the same index, measured in prices, may confirm a growth of 1.3% as well, with little change from what it was in the previous reading for the fourth quarter.

In another context, markets are also awaiting by the end of the week the upcoming talk of Fed Governor Jerome Powell at the Griswold Center for Economic Policy Studies at Princeton University in New Jersey, where he is expected to participate in a hypothetical satellite panel discussion, and we would like to point out that Powell Noah Thursday The past is that the Fed will spare no effort until the US economy recovers from the fallout from the Coronavirus.

Technical analysis

The EURUSD pair is hovering around the EMA50, and we expect the markets to see weak trading today due to the effect of the holiday of some financial markets.

In general, the stability of the price below 1.0966 keeps the downside scenario effective on the intraday basis, awaiting testing the level of 1.0840 as a first major target, noting that breaking this level will extend the descending wave to reach the levels of 1.0700 then 1.0640, while the breach of 1.0966 represents the key to the upside and rush Initially 1.1067.

The expected trading range for today is between 1.0800 support and 1.0966 resistance.

Expected trend for today: bearish.

Gold prices fluctuated in a narrow range slanting back down during the Asian session to witness its bounce for the third session in six sessions from its highest since April 14, when it tested its highest since the fifth of October 2012 amid the US dollar index rebound to the fourth session from the lowest It has been around since May 4, when it tested its lowest since March 30, according to the inverse relationship between them.

This comes amid the scarcity of economic data on Monday by the US economy due to the Memorial Day holiday in the United States and in the wake of the report that touched on the Japanese government's intention to adopt more stimulus to face the negative economic repercussions of the Corona outbreak and in conjunction with growing concern about the return of strikes in Hong Kong and the escalation of tensions between Washington and Beijing over the weekend and amid the persistence of the Chinese National People's Congress.

At exactly 04:43 AM GMT, gold futures contracts for next August delivery fell 0.44% to trade at $ 1,745.30 per ounce compared to the opening at $ 1,753.00 per ounce, knowing that the contracts started the session’s trading on a falling price gap after it concluded trading Last week, at $ 1,753.50 an ounce, with the US dollar index rising 0.04% to 99.84 compared to the opening at 99.80.

We have also followed up on the report that the Japanese government is considering adopting a new stimulus package worth 100 trillion yen ($ 929 billion) that will mostly consist of the financial aid program for companies that were affected by the Corona pandemic, and it is expected that the package will be funded with a second additional budget for the fiscal year that started with Early April, as part of record spending plans of $ 1.1 trillion to mitigate the negative economic consequences of the coronavirus outbreak.

It is expected that the additional budget of the Japanese government will include 60 trillion yen to expand the loan program provided by state and private financial institutions to Japanese companies affected by the repercussions of the outbreak of the Corona Virus, and it is expected that the Japanese government will agree during the cabinet meeting tomorrow, Wednesday, on this additional budget It will also include support to help companies pay rent and wages when the business closes.

This comes hours after the Bank of Japan's monetary policymakers decided last Friday at the May 22 emergency meeting, which was held for one day as a precaution against the spread of Corona, to keep interest rates negative at 0.10%, which came in line with expectations at the time, with Also, remain committed to directing the 10-year government bond yield to zero.

In the same context, the Central Bank of Japan revealed on Friday the monetary policy statement, which reflected the Bank of Japan's offer of further stimulus with the launch of a new lending program aimed at channeling more money to small and medium-sized companies that suffer from the economic blow to the outbreak of the coronavirus, while stating that The deadline has been extended for a series of recent actions he has taken to combat the consequences of the Coronavirus.

The Bank of Japan announced at that time that it would accelerate the purchases of corporate debts with a six-month period until the end of the current fiscal year on March 31, 2021, with his statement that the response measures to the virus totaled to 75 trillion yen, and this comes in the wake of the Bank of Japan raising in Last April's meeting, the maximum purchase limit for corporate and commercial securities that it pledges to purchase is 20 trillion yen from 7 trillion yen previously.

It is reported that the Japanese Central Bank also confirmed last month its commitment to purchase unlimited amounts of government bonds by canceling the previous directive to purchase them at an annual rate of about 80 trillion yen, as the monetary policy statement included at that time a paragraph, "The Bank of Japan will purchase the necessary amounts of government bonds without Set a maximum limit so that the yield of 10-year bonds remains at about zero percent.

In contrast, the Chinese foreign minister also told reporters yesterday that some political forces in the United States are taking bilateral relations "hostage" and pushing the two economic powers to the brink of a "new cold war", according to an official English translation from his statements published by the Foreign Ministry, otherwise, we would like to point out, As the Chinese National People's Congress confirmed that the Chinese government was ready to implement its promise of the trade agreement signed with Washington.

We would like to point out that despite China’s assertion of its commitment to the first stage of the trade agreement with the United States, tensions between Washington and Beijing have increased significantly after the Chinese parliament passed the new Chinese security law and the two parties criticized each other about it, and in the wake of the Senate’s pass. The US also earlier this week a bill preventing Chinese companies from listing on America's stock exchanges.

On the other hand, investors awaited later this week by the US economy, to disclose the second reading of the GDP index, which may confirm the contraction of the largest economy in the world, 4.8%, as the previous preliminary reading showed and against the growth of 2.1% in the fourth quarter, while The second reading of the same index, measured in prices, may confirm a growth of 1.3% as well, with little change from what it was in the previous reading for the fourth quarter.

Technical analysis

The price of gold is now testing the pivotal support 1725.90, which represents one of the keys to the next direction next to the resistance 1745.50, as it falls under the negative pressure formed by the stochastic indicator, which provides an advantage to present more negative trades during the upcoming sessions.

Until now, we continue to monitor the price with respect to the mentioned levels until we get a clearer signal for the next direction, noting that breaking the mentioned support will push the price to visit the first correction level at 1691.10 directly while breaching the resistance will motivate the price to restore the main bullish trend and head towards 1810.00 as a target Next positive.

The expected trading range for today is between 1705.00 support and 1750.00 resistance.

Expected trend for today: It depends on the levels mentioned in the report.

The US dollar fluctuated in a narrow range tilted to the upside during the Asian session against the Japanese yen after the report that it adopted earlier this week, which touched on the Japanese government's intention to adopt more stimulus to face the negative economic repercussions of the Corona outbreak and amid the scarcity of economic data on Monday by the US economy due to Anniversary Day in the United States.

At exactly 6:15 am GMT, the US dollar pair rose against the Japanese yen by 0.12% to 107.72 levels compared to the opening levels at 107.59 after the pair achieved its highest level during the trading session at 107.78, while achieving the lowest at 107.57, knowing that The pair started the trading session on a falling price gap after it concluded the trading last week at 107.64 levels.

The Japanese government may lift the state of emergency in Tokyo today as part of the measures to lift the state of emergency inside Japan that was initiated by Japanese Prime Minister Shinzo Abe earlier this month. It is reported that Abe announced on May 14 that the state of emergency was lifted in 39 areas of origin 47 regions in Japan, and eight regions remained at the time, including Tokyo, Osaka and Hokkaido. The state of emergency is expected to be lifted in those areas by the end of this month.

Abe warned in advance of the possibility of a second wave of corona's outbreak, and Japanese Economy Minister Yasutoshi Nishimura expressed last week his expectations for a second wave to follow later, pointing to the importance of his country making all efforts to make this wave lighter, and noted by Japanese Finance Minister Taro Aso Friday That it will not be sufficient to contain the virus in his country only, but it must be contained globally, and without that, the recovery of exports and tourism will be very difficult.

Other than that, we followed the report that touched upon the Japanese government considering adopting a new stimulus package worth 100 trillion yen ($ 929 billion) that will mostly consist of the financial aid program for companies that were affected by the Corona pandemic, and it is expected that the package will be funded with a second additional budget for the fiscal year that It started in early April, as part of record spending plans worth $ 1.1 trillion to mitigate the negative economic consequences of the virus.

It is expected that the additional budget of the Japanese government will include 60 trillion yen to expand the loan program provided by state and private financial institutions to Japanese companies affected by the repercussions of the outbreak of the CoronaVirus, and it is expected that the Japanese government will agree during the cabinet meeting tomorrow, Wednesday, on this additional budget It will also include support to help companies pay rent and wages when the business closes.

This comes hours after the Bank of Japan's monetary policymakers decided last Friday at the May 22 emergency meeting, which was held for one day as a precaution against the spread of Corona, to keep interest rates negative at 0.10%, which came in line with expectations at the time, with Also, remain committed to directing the 10-year government bond yield to zero.

In the same context, the Central Bank of Japan revealed on Friday the monetary policy statement, which reflected the Bank of Japan's offer of further stimulus with the launch of a new lending program aimed at channeling more money to small and medium-sized companies that suffer from the economic blow to the outbreak of the coronavirus, while stating that The deadline has been extended for a series of recent actions he has taken to combat the consequences of the Coronavirus.

The Bank of Japan announced at that time that it would accelerate the purchases of corporate debts with a six-month period until the end of the current fiscal year on March 31, 2021, with his statement that the response measures to the virus totaled to 75 trillion yen, and this comes in the wake of the Bank of Japan raising in Last April's meeting, the maximum purchase limit for corporate and commercial securities that it pledges to purchase is 20 trillion yen from 7 trillion yen previously.

It is reported that the Japanese Central Bank also confirmed last month its commitment to purchase unlimited amounts of government bonds by canceling the previous directive to purchase them at an annual rate of about 80 trillion yen, as the monetary policy statement included at that time a paragraph, "The Bank of Japan will purchase the necessary amounts of government bonds without Set a maximum limit so that the yield of 10-year bonds remains at about zero percent.

On the other hand, investors expecting later this week by the US economy to disclose the second reading of the GDP index, which may confirm the contraction of the largest economy in the world by 4.8%, as the previous preliminary reading showed and against a growth of 2.1% in the fourth quarter, while The second reading of the same index, measured in prices, may confirm a growth of 1.3% as well, with little change from what it was in the previous reading for the fourth quarter.

In another context, markets are also awaiting by the end of the week the upcoming talk of Fed Governor Jerome Powell at the Griswold Center for Economic Policy Studies at Princeton University in New Jersey, where he is expected to participate in a hypothetical satellite panel discussion, and we would like to point out that Powell Noah Thursday The past is that the Fed will spare no effort until the US economy recovers from the fallout from the Coronavirus.

Technical analysis

The dollar versus the yen is making continuous attempts to breach the 107.68 level and maintains its stability inside the bullish channel that appears in the picture, while the EMA50 provides continuous positive support for the price.

Thus, these factors encourage us to continue to suggest the bullish trend for the upcoming period, whose next main target is at 109.22, noting that a break of 107.35 will stop the suggested rise and press the price to test the 106.44 level initially.

The expected trading range for today is between 107.00 support and 108.60 resistance.

Expected trend for today: bullish.