Analytic reviews

The fluctuation of the US dollar in a narrow range tilted to the up during the Asian session against the Japanese yen after the developments and economic data that were followed by the Japanese economy and on the cusp of developments and economic data expected today by the US economy, the largest economy in the world, which includes the disclosure of the minutes of the Federal Open Market Committee meeting Held at the end of last month.

At 05:50 am GMT, the US dollar pair rose against the Japanese yen by 0.04% to 107.75 levels compared to the opening levels at 107.71 after the pair achieved its highest level during the trading session at 107.98, while achieving the lowest at 107.66.

We have followed about the Japanese economy, the third largest economy in the world and the third largest industrialized country globally, to reveal the reading of the machinery orders index, which showed a 0.4% decline compared to a rise of 2.3% last February, surpassing expectations that indicated a decline of 6.8%, while the reading showed The annual index for the same index decreased the decline to 0.7% compared to 2.4%, also outperforming the expectations that indicated the expansion of the decline to 9.5%.

This comes hours after the Bank of Japan announced its intention to hold an emergency meeting next Friday, during which monetary policy makers at the Bank of Japan are expected to keep interest rates negative at 0.10% and provide more stimulus, after the Bank of Japan raised the limit last month. The maximum purchase of corporate bonds and commercial securities he pledges to buy is 20 trillion yen from 7 trillion yen in advance.

The Bank of Japan also announced at the end of 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, stating at the time that “the Bank of Japan will purchase the necessary amounts of government bonds without setting a higher limit, so that it remains 10-year bond yield at about zero percent.

On the other hand, markets are currently awaited by the US economy, as the Federal Reserve revealed the minutes of the Federal Open Market Committee meeting held on April 28-29, in which it decided to stabilize interest on federal funds at zero levels between zero and 0.25%. , Which came in line with expectations at the time, amid stressing the way forward in using all tools to support the American economy in these difficult times.

It is reported that members of the Federal Committee expressed at the end of last month that the outbreak of the Coronavirus had caused human and economic suffering within the United States and abroad and that the preventive measures adopted by countries globally weigh on economic activity and that the decline in demand and the collapse of oil prices reduce inflationary pressures, while benefiting That this health crisis will broadly affect economic activity and the labor market as well as inflation.

The members of the Federal Committee also mentioned at the time that interest rates are expected to remain at zero levels to support the flow of credit to families and companies, and that the Federal Reserve is moving forward in purchasing treasury bonds at $ 500 billion per month and mortgage bonds at least $ 200 per month, when the economy showed signs of Recovery in the wake of overcoming the current crisis and achieving price stability in addition to an improvement in the labor market.

The Federal Committee also stated at the time that it would continue to follow economic data and data related to health care and global developments and assess the current and expected conditions within its work to reach the goal of inflation at two percent and achieve the maximum benefit in the labor market, adding that it will monitor the market conditions closely and is ready to amend its tools if What is needed.

Otherwise, yesterday we followed the statement of Federal Reserve Governor Jerome Powell and US Treasury Secretary Stephen Manuchin before the Senate Satellite Banking, Housing and Urban Affairs Committee, and Powell emphasized that the Federal Reserve will keep interest rates at zero levels until recovery Economy and achieving the goal of inflation, and he is committed to using all his tools to support the economy in this difficult period.

Technical analysis

The dollar versus the yen made a breach through the level of 107.68 and closed the daily candle above it, to get out of the sideways range that dominated the recent trading and activate the bullish trend scenario on the intraday basis, on its way to head towards 109.22 as a next positive target.

Therefore, the bullish bias will be likely for the upcoming sessions, taking into consideration that breaking 107.68 and holding below it will stop the expected rise and put the price under negative pressure targeting mainly 106.44 areas.

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

Expected trend for today: bullish.

GBPUSD 

The currency pair is trading in the range of 365 and 135 moving averages and the upper limit of the descending price channel. Awesome Oscillator shows a bearish divergence, while Stochastic Oscillator signals overboughtness. Breaking through the price pivot zone of 1.2232 will result in the formation of a 1-2-3 descending pattern.

Trading recommendations:

Sell below 1.2232.

Stop loss: 1.2300.

Target levels: 1.2180; 1.2080.

In case of an upward movement in the range of 1.2300, cancel the trading plan.

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

#BK

The 33.93 support level is holding back buyers. Stochastic Oscillator signals oversoldness. If the price fixes above the resistance level of 33.93, it will have an opportunity to grow within the range of a “specialist trap”—a reversal level of 37.80.

Trading recommendations:

Buy above 33.93.

Stop loss under the price pivot zone of 31.21.

Target levels: 37.80; 40.80.

The #BK rate online: monitor the movement of the shares in real time.

GBPUSD

The pair signals the possibility of a downward turn amid the reduced risk appetite in the markets, increased demand for the US dollar, as well as weak consumer inflation data in the UK published this morning.

Technical side:

The price is above the middle Bollinger band, below SMA 5 and above SMA 14. RSI is above the 50% level and is turning down. Stoch are steadily declining.

Trading recommendations:

A decrease below 1.2245 may lead to a drop to 1.2160.

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

#BA

The US stock market is recovering after the pandemic-induced collapse. The US are gradually easing the quarantine measures, which has a positive impact on the economy.

The price pivot zone of 136.0 is holding back buyers on the Boeing chart. Awesome Oscillator shows a bullish divergence, while Stochastic Oscillator indicates oversoldness.

Trading recommendations:

Buy above 136.00.

Stop loss: 114.00.

Target levels: 154.00; 185.00; 214.00.

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

The Australian dollar fluctuated in a narrow range tilted to the upside during the Asian session, to witness the highest level since May 11 against the US dollar, following developments and economic data that were reported by the Australian economy and on the cusp of developments and economic data expected today Tuesday by the US economy, which includes a testimony of the governor Federal Reserve Jerome Powell and US Treasury Secretary Stephen Mnuchin before the Senate.

At 02:43 am GMT, the Australian dollar pair rose against the US dollar by 0.08% to 0.6529 levels compared to the opening levels at 0.6524, after the pair achieved its highest level in a week at 0.6551, while it achieved its lowest during the trading session at 0.6515.

We have followed the Australian economy, the Reserve Bank of Australia revealed the minutes of its last meeting, which was held on the fifth of this month, during which the monetary policymakers of the Australian Central Bank approved stabilizing short-term reference interest rates for the second consecutive meeting at the lowest ever at 0.25%. Which came in line with expectations at the time.

The minutes stated that the Australian central bank will not increase the interest until the economy shows progress towards full employment and sustainable inflation within the target range between 2 ~ 3% and that the speed and timing of the economic recovery are uncertain and that it is ready to increase its purchases of bonds, and investors are looking after tomorrow, Thursday, for the participation of a governor Reserve Bank of Australia Philip Lowe at a panel discussion at the Institute of Financial Services Australia in Sydney.

On the other hand, the markets are currently awaiting the release of the housing market data by the US economy, with the release of both the beginning construction index and the building permit index, and amid expectations that building permits will reflect the widening decline to about 1.00 million permits compared to about 1.35 million permits in March. In the past, the readings for homes that were constructed may reflect the widening decline to about 0.95 million homes compared to about 1.22 million homes in March.

This comes before we witness Federal Reserve Governor Jerome Powell and US Treasury Secretary Stephen Mnuchin about the relief assistance that has been approved by the Federal Reserve and the US Treasury to reduce the repercussions of the coronavirus outbreak, in addition to their testimony about the economic security law before the Banking, Housing and Urban Affairs Commission In the US Senate in Washington via satellite.

This comes hours after Powell warned last Sunday in the "60 Minutes" program that the economic downturn may continue until late 2021, explaining that his country's economic downturn may reach between 20% and 30% "easily" during the current quarterly quarter with the outbreak of a virus epidemic. Corona, explaining that he expected "the economy to recover steadily during the second half of this year," as long as America avoids "the second wave of the virus."

Powell then noted that "it is very important to avoid this. It will be devastating to the economy and public confidence," adding that "assuming there is no second wave of the virus, I think you will see the economy recover steadily during the second half," explaining that "in order for the economy to fully recover". A vaccine must wait, "Powell also called on US lawmakers to pass more economic incentives and relief aid, while telling him that unemployment rates could peak at 25%.

In another context, we followed this weekend, the American President expressed through his official account on the tension that all Japan, India, Britain, Canada, New Zealand, Indonesia, Russia and all member states of the European Union support Australia in requesting an international investigation against the spread of Coronavirus And that his country would also support Australia in that investigation.

Other than that, the markets are also looking at later in the day for the activities of the Group of Seven major industrial meeting, which is scheduled to discuss measures to mitigate the negative economic repercussions of the spread of the Coronavirus, via satellite, and this comes in conjunction with measures to reopen the US economy and many other global economies Gradually and the return of life to normal.

Technical analysis

The Australian dollar versus the US dollar continues to rise to approach our first waited target at 0.6550, awaiting further rise supported by the move above the EMA50, noting that the breach of the mentioned level is considered the key to the rally towards 0.6685 as the next main station.

In general, we will continue to suggest the bullish trend for the next period unless 0.6407 level is broken and stability below it.

The expected trading range for today is between 0.6460 support and 0.6600 resistance.

Expected trend for today: bullish.

The single currency fluctuated the euro in a narrow range slanting back down during the Asian session to witness its bounce for the second session from its top since May 4 against the US dollar on the cusp of developments and economic data expected today by the euro area and the US economy, which includes the testimony of the Governor of the Reserve Bank Federalist Jerome Powell and US Treasury Secretary Stephen Mnuchin before the Senate in Washington.

At exactly 04:45 am GMT, the euro against the US dollar fell 0.04% to 1.0910 levels, compared to the opening levels at 1.0914, after the pair achieved its lowest level during the trading session at 1.0902, while achieving the highest at 1.0924, knowing that The pair started the trading session on an upward price gap after it concluded yesterday's trading at 1.0913 levels.

The markets are looking to reveal a statistical reading of the ZEW economic sentiment index for Germany, the largest economies in the eurozone and the eurozone economies as a whole, which may reflect an expansion in Germany and the region as a whole to the value of 30.0 and 27.4 compared to 28.2 and 25.2, respectively last March, and comes This coincides with the activities of the meetings of finance ministers for the Eurozone Eurofin in Brussels.

Other than that, we followed earlier this week, German Chancellor Angela Merkel and French President Emmanuel Macron announced, through a joint statement, on a proposal to rebuild the recovery plan submitted by the European Union to support the economies of the euro area in the face of the current health crisis caused by the Coronavirus, And by providing 500 billion euros to provide financing for the most affected sectors in the region.

German Chancellor Merkel said on Monday that the plan should work to target the exit of the euro area from the current crisis is stronger than previously and that the proposed financing in the plan will be grants from member states and not loans received by those affected sectors, while French President Macron expressed the importance of unifying The goal of the health authorities in the European Union to provide treatment for coronavirus as soon as possible.

We would like to point out, because the European Commission welcomed the joint proposal of Germany and France, the second-largest economy in the eurozone, while noting that the European Commission is also concerned with those points adopted by the largest economies of the region through the proposal, but that the final decision was not reached before looking at the proposals submitted by All European Union countries and the European Parliament’s approval of the proposed plan later.

On the other hand, investors are currently awaiting the release of the housing market data by the US economy with the release of both the index of start-up homes and the construction permit index and amid expectations that building permits will reflect the widening decline to about 1.00 million permits compared to about 1.35 million permits in March In the past, the readings for homes that were constructed may reflect the widening decline to about 0.95 million homes compared to about 1.22 million homes in March.

This comes hours after Powell warned last Sunday in the "60 Minutes" program that the economic downturn may continue until late 2021, explaining that his country's economic downturn may reach between 20% and 30% "easily" during the current quarterly quarter with the outbreak of a virus epidemic. Corona, explaining that he expected "the economy to recover steadily during the second half of this year," as long as America avoids "the second wave of the virus."

Powell then noted that "it is very important to avoid this. It will be devastating to the economy and public confidence," adding that "assuming there is no second wave of the virus, I think you will see the economy recover steadily during the second half," explaining that "in order for the economy to fully recover". A vaccine must wait, "Powell also called on US lawmakers to pass more economic incentives and relief aid, while telling him that unemployment rates could peak at 25%.

In the same vein, Powell has guided that the Federal Reserve has adopted many stimulus measures and still has more tools, explaining that there is much that the Federal Reserve can do to support the economy, adding that the Federal Reserve is committed to doing everything in its power as long as necessary. This excludes the Federal Reserve's resort to pushing the interest on federal funds into negative territory.

Other than that, the markets are also looking later in the day to the events of the Group of Seven major industrial meeting, which is scheduled to discuss measures to mitigate the negative economic repercussions of the outbreak of the Coronavirus, via satellite, and this comes in conjunction with measures to reopen the US economy and many global economies The other gradually and the return of life to normal.

Technical analysis

The EURUSD pair ended yesterday's trading above the 1.0840 level after the bullish rally that it witnessed in the last sessions, to confirm the activation of the bullish trend scenario, awaiting the trend towards 1.0966 which represents our next main target.

Moving above SMA 50 supports positive expectations, noting that breaching the targeted level will push the price to 1.1067 as the next main target, while stability above 1.0840 is a key condition for the continuation of the expected decline.

The expected trading range for today is between 1.0840 support and 1.1020 resistance.

Expected trend for today: bullish.

Gold prices fluctuated in a narrow range tilted to the upside during the Asian session, while neglecting the positive stability of the US dollar index according to the inverse relationship between them on the threshold of developments and economic data expected on Tuesday by the American economy, which includes the testimony of Federal Reserve Governor Jerome Powell and US Treasury Secretary Stephen Mnuchin before The Senate, with market pricing for measures to gradually reopen the US economy and some other global economies, is returning to normal.

At 05:10 am GMT, gold futures contracts for June delivery rose 0.28% to trade at $ 1,739.70 per ounce compared to the opening at $ 1,734.80 per ounce, knowing that the contracts started the trading session on an upward price gap after it concluded yesterday's trading At $ 1,734.40 an ounce, while the US dollar index rose 0.06% to 99.69 compared to the opening at 99.63.

The markets are currently awaiting the release of the housing market data by the American economy, with the release of both the index of start-up homes and the construction permit index and amid expectations that building permits will reflect the widening of the decline to about 1.00 million permits compared to about 1.35 million permits last March. The readings for the homes that were constructed may also reflect a widening decline to about 0.95 million homes compared to about 1.22 million homes in March.

This comes before we witness Federal Reserve Governor Jerome Powell and US Treasury Secretary Stephen Mnuchin about the relief assistance that has been approved by the Federal Reserve and the US Treasury to reduce the repercussions of the coronavirus outbreak, in addition to their testimony about the economic security law before the Banking, Housing and Urban Affairs Commission In the US Senate in Washington via satellite.

Markets are also looking forward to the results of the speech of Federal Open Market Committee member and President of the Federal Reserve Bank of Minneapolis Neil Kachkari regarding the economy. The talk of General Financial Mills in Minneapolis also via satellite, and we would like to point out that the Federal Reserve Governor Powell is expected to deliver remarks tomorrow, Thursday. The editorial in the Federal Reserve's talk about the Coronavirus, via satellite.

This comes hours after Powell warned last Sunday in the "60 Minutes" program that the economic downturn may continue until late 2021, explaining that his country's economic downturn may reach between 20% and 30% "easily" during the current quarterly quarter with the outbreak of a virus epidemic. Corona, explaining that he expected "the economy to recover steadily during the second half of this year," as long as America avoids "the second wave of the virus."

Powell then noted that "it is very important to avoid this. It will be devastating to the economy and public confidence," adding that "assuming there is no second wave of the virus, I think you will see the economy recover steadily during the second half," explaining that "in order for the economy to fully recover". A vaccine must wait, "Powell also called on US lawmakers to pass more economic incentives and relief aid, while telling him that unemployment rates could peak at 25%.

Technical analysis

The gold price continues to fluctuate around 1747.43 level and attempts are being made to breach it now, which supports the chances of the continuation of the bullish trend scenario in the longer term, paving the way for heading towards our next main target that extends to 1785.00.

SMA 50 continues to support the suggested bullish wave, which will remain valid and effective provided stability above 1717.00 as the first protection factor for the positive scenario.

The expected trading range for today is between 1730.00 support and 1785.00 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 on the Japanese economy and on the cusp of developments and economic data expected today by the American economy, the largest economy in the world, which includes the testimony of the Federal Reserve Governor Jerome Powell and the Minister American Treasury Stephen Manuchin before the Senate in Washington.

At exactly 05:51 am GMT, the US dollar pair rose against the Japanese yen by 0.06% to 107.40 levels compared to the opening levels at 107.33 after the pair achieved its highest level during the trading session at 107.46, while achieving the lowest at 107.30, knowing that The pair started the trading session on a falling price gap after it concluded yesterday's trading at 107.34 levels.

On the Japanese economy, we have followed the disclosure of industrial sector data with the release of the final reading of industrial production, which showed a steady decline at 3.7%, unchanged from the previous initial reading for the month of March, in line with expectations and against a decline of 0.3% last February, while The annual reading of the same index showed that the decline decreased to 5.2% compared to 5.7%, and the reading of the rate of energy utilization reflected the expansion of the decline to 3.6% compared to 1.8%.

On the other hand, the markets are currently looking to the US economy to reveal the housing market data with the release of both the beginning construction index and the building permit index and amid expectations that building permits will reflect the widening of the decline to about 1.00 million permits compared to about 1.35 million permits in March In the past, the readings for homes that have been built may also reflect a widening decline to about 0.95 million homes compared to about 1.22 million homes in March.

This comes hours after Powell warned last Sunday in the "60 Minutes" program that the economic downturn may continue until late 2021, explaining that his country's economic downturn may reach between 20% and 30% "easily" during the current quarterly quarter with the outbreak of a virus epidemic. Corona, explaining that he expected "the economy to recover steadily during the second half of this year," as long as America avoids "the second wave of the virus."

Powell then noted that "it is very important to avoid this. It will be devastating to the economy and public confidence," adding that "assuming there is no second wave of the virus, I think you will see the economy recover steadily during the second half," explaining that "in order for the economy to fully recover". A vaccine must wait, "Powell also called on US lawmakers to pass more economic incentives and relief aid, while telling him that unemployment rates could peak at 25%.

In the same vein, Powell has guided that the Federal Reserve has adopted many stimulus measures and still has more tools, explaining that there is much that the Federal Reserve can do to support the economy, adding that the Federal Reserve is committed to doing everything in its power as long as necessary. This excludes the Federal Reserve's resort to pushing the interest on federal funds into negative territory.

Other than that, the markets are also looking later in the day to the events of the G-7 (America, UK, Japan, Germany, France, Italy and Canada) meeting that is scheduled to discuss measures to mitigate the negative economic repercussions of the Coronavirus outbreak, via satellite Industrialization, and this comes in conjunction with measures to gradually reopen the US economy and many other global economies and return life to normal.

Technical analysis

The dollar versus the yen did not show any strong movement in the previous sessions, to continue to move within the sideways range that appears in the picture, between 106.44 support and 107.68 resistance, to keep the lateral inclination intact on the intraday basis, waiting for one of these levels to be surpassed to determine the next direction more precisely.

The discrepancy between SMA 50 positivity and stochastic negativity provides another reason for sideways fluctuation, noting that details of the expected targets from breaching the above-mentioned levels are explained in our previous report.

The expected trading range for today is between 106.30 support and 108.00 resistance.

Expected trend for today: sideways.

EURNZD 

The currency pair is trading in the range of 135 and 365 moving averages directed upwards. Awesome Oscillator shows bullish divergence, while Stochastic Oscillator signals oversoldness.

Trading recommendations:

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

Stop loss at the local minimum.

The goal is 1.8250;

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