Analytic reviews

Gold prices fluctuated in a narrow range tilted towards the decline during the Asian session amid the rise of the US dollar index for the sixth session in nine sessions from the lowest since March 30, according to the inverse relationship between them on the threshold of developments and economic data expected on Thursday by the US economy, which includes talk Member of the Federal Open Market Committee Neil Kachkari later today.

At exactly 04:20 AM GMT, gold price futures for June delivery decreased 0.11% to trade at $ 1,721.20 per ounce compared to the opening at $ 1,723.10 per ounce, knowing that the contracts started the trading session on an upward price gap after it concluded yesterday's trading At $ 1,716.40 an ounce, with the US dollar index rising 0.10% to 100.28 compared to the opening at 100.18.

Investors are currently awaiting by the US economy the issuance of the aid claims index for the last week on the ninth of May, which may reflect a decline by 669 thousand applications to 2,500 thousand requests compared to 3,169 thousand requests in the previous reading, while the reading of the continuous benefit requests may appear last week In the second of this month, an increase of 2,453 thousand requests to 25,100 thousand requests compared to 22,647 thousand requests.

This comes in conjunction with the release of the import price index, which may explain the decline in the decline to 3.1% compared to 2.3% in March, as the annual reading of the same indicator may show the widening of the decline to 6.2% versus 4.1%, all the way to the speech of a member of the Federal Open Market Committee and Chairman Federal Reserve Bank of Minneapolis Neil Chakkari about the economic responses to the Coronavirus at an online seminar by the Economic Club of Minnesota.

Otherwise, yesterday we followed the statements of Federal Reserve Governor Jerome Powell prepared for the event that was broadcast online with the Peterson Institute for International Economics through which he noted that "although the economic response was timely and appropriately large, it may not be The last chapter, given that the road ahead is very uncertain and subject to great risks. "

Powell also warned yesterday that the potential economic recession may be deeper and longer without additional fiscal stimulus, which limited the appetite of risk for investors, especially with the uncertainty that markets are witnessing in reopening global economies and easing the social divergence measures that have been imposed in efforts to reduce Coronavirus outbreak already, which could lead to a possible second wave of killer virus outbreak with the reopening.

Technical analysis

The gold price returns to fluctuate around the EMA50, and it tries to consolidate positively despite the stochastic negativity, to keep our expectations for the bullish trend that targets 1747.43 then 1785.00 mainly.

The triangle shown on the above chart has a strong resistance at 1720.00 now, and the price needs to breach this level to confirm the rally towards the awaited targets, taking into consideration that breaking 1678.45 will stop the suggested rise and put the price under the downward corrective pressure.

The expected trading range for today is between 1690.00 support and 1735.00 resistance.

Expected trend for today: bullish.

The fluctuation of the US dollar in a narrow range tilted toward decline during the Asian session to witness its bounce to the fourth session from the top since April 23 against the Japanese yen after the developments and economic data that it had reported on the Japanese economy and on the cusp of developments and economic data expected Thursday by the US economy, which includes Federal Open Market Committee member Neil Kachkari later today.

At exactly 06:02 am GMT, the US dollar pair fell against the Japanese yen by 0.19% to 106.83 levels compared to the opening levels at 107.03 after the pair achieved its lowest level during the trading session at 106.82, while achieving the highest at 107.10.

We have followed about the Japanese economy, the Bank of Japan revealed the annual reading of the M-2 bank lending index, which showed an acceleration of growth to 3.7% compared to 3.3% in the previous annual reading of last March, surpassing expectations that indicated a growth acceleration to 3.4%, and came That was before we witnessed the disclosure of the annual preliminary reading of the machinery rate index, which reflected the widening of the decline to 48.3% compared to 40.7% in March.

On the other hand, investors are currently awaiting by the American economy for the release of the index of subsidy requests for the last week on the ninth of May, which may reflect a decline of 669 thousand requests to 2,500 thousand requests compared to 3,169 thousand requests in the previous reading, while the reading of subsidy applications may appear Continuing for the last week in the second of this month, increasing by 2,453 thousand requests to 25,100 thousand requests compared to 22,647 thousand requests.

This comes in conjunction with the release of the import price index, which may explain the widening decline to 3.1% compared to 2.3% in March, and hours after Federal Reserve Governor Jerome Powell expressed yesterday that "despite the fact that the economic response was timely and large enough, However, it may not be the last chapter, given that the road ahead is very uncertain and subject to great risks. "

Powell also warned that the potential economic recession may be deeper and longer without additional fiscal stimulus, which reduced appetite for risk among investors, especially with the uncertainty that markets are witnessing in reopening global economies and easing the social divergence measures that have been imposed as part of efforts to curb the spread of Coronavirus previously, which could lead to a possible second wave of deadly virus outbreaks with re-opening.

Technical analysis

The dollar versus yen presented negative trades expected yesterday, on the way to visit the sideways range support located at 106.44, and gets negative signals through the stochastic and the moving average 50, which support the chances of achieving a further decline during the upcoming sessions.

But until now, we are continuing to favor the sideways tendency between the mentioned support and the resistance 107.68 until one of these two levels is breached to define the following targets more accurately, noting that breaking the support will push the price to 105.00 directly while breaking the resistance will lead the price to rise and head towards 109.22 as a station Next major.

The expected trading range for today is between 106.30 support and 107.80 resistance.

Expected trend for today: sideways.

#KHC

A multi-candle head and shoulders reversal model has formed on the H4 timeframe. The support level of 28.40 (neck line) is holding back the bears. Awesome Oscillator shows bearish divergence, while Stochastic Oscillator showed an exit from the overbought zone.

Trading recommendations:

Sell below 28.40.

Stop loss: 29.80.

Target levels: 27.45; 26.43; 24.93.

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

GBPCAD 

The 1.7200 support level is holding back sellers. Awesome Oscillator indicator shows bullish divergence, while Stochastic Oscillator signals oversoldness. The currency pair is trading in the upper bound of the descending price channel.

Trading recommendations:

Buy while an ascending 1-2-3 pattern is forming, where wave 1 breaks through the upper border of the descending price channel.

Stop loss under the support level 1.7200.

Target levels: 1.7480; 1.7680.

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

GBPUSD 

The pair is consolidating in a wide range of 1.2250–1.2555. Today it found support at 1.2250 amid the somewhat better UK economic statistics released today. Today, the market will be focused on Jerome Powell’s speech. If his outlook for the US economy is optimistic, and he clearly dismisses the possibility of negative interest rates by the Fed, the growth in demand for risk assets combined with the UK data may push the pair up.

Technical side:

The price is below the middle Bollinger band, above SMA 5, but still below SMA 14. RSI is below the 50% level and has turned up. Stoch are reversing in the oversold zone.

Trading recommendations:

Buy the pair after it goes above 1.2310 with a possible target of 1.1440, and with a possibility of a further growth up to 1.2655.

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

The Australian dollar versus the US dollar pair is back to test the support of the main bullish channel and is still above it, noting that SMA 50 is trying to protect the suggested positive scenario in our recent reports, waiting for the resumption of the uptrend targeting mainly 0.6685 level.

On the other hand, it should be noted that breaking the 0.6407 level will stop the expected rise and press the price to drop and visit 0.6236 areas initially.

The expected trading range for today is between 0.6410 support and 0.6550 resistance.

Expected trend for today: bullish.

The euro against the dollar ended yesterday's trading above 1.0840, which stops the negative scenario suggested in our recent reports and leads the price to achieve more expected rise during the upcoming sessions, especially as the price has completed forming a double bottom model showing its features in the picture.

Thus, the bullish bias will be likely for today, and the next main target is at 1.0966, taking into consideration that breaking 1.0840 and holding below it will reactivate the bearish trend scenario for the trend towards 1.0700 initially.

The expected trading range for today is between 1.0750 support and 1.0960 resistance.

Expected trend for today: bullish.

Gold prices fluctuated in a narrow range tilted towards the decline during the Asian session, condoning the decline in the US dollar index for the second consecutive session from its highest since April 24, according to the inverse relationship between them on the threshold of developments and economic data expected on Wednesday by the American economy, the largest economy in The world which includes Fed Governor Jerome Powell talk.

At exactly 03:55 AM GMT, gold price futures for June delivery decreased 0.02% to trade at $ 1,704.70 per ounce compared to the opening at $ 1,705.00 per ounce, knowing that the contracts started the session’s trading on a falling price gap after yesterday's trading was concluded At $ 1,706.80 an ounce, while the US dollar index fell 0.03% to 99.98 compared to the opening at 100.00.

Investors are currently awaiting by the US economy the disclosure of the PPI reading, which is an initial indicator of inflation, which may reflect the widening contraction to 0.5% compared to 0.3% in March, while the fundamental reading of the same index may show a 0.1% contraction versus 0.2% growth, The annual reading of the index may show a contraction of 0.2% against a growth of 0.7%, while a substantial annual reading may reflect a slowdown in growth to 0.9% versus 1.4%.

This comes, hours after inflation data for the United States showed yesterday that the contraction widened in April, according to the CPI reading and the core reading of the same index, and the annual readings showed slowing growth in a way that exceeded expectations. Federal Reserve Jerome Powell on economic issues at an online seminar organized by the Peterson Institute for International Economics.

It is noteworthy that US Treasury Secretary Stephen Mnuchin warned last Sunday that unemployment rates in his country "may get worse before they improve" and that unemployment rates may have reached 25%, and his statements came hours after the American labor market data showed last Friday that unemployment rates in the states increased The United Nations had the highest in about seven decades, to 14.7%, with about 20.5 million jobs lost during April due to the outbreak of the Coronavirus.

Technical analysis

The gold price returns to fluctuate around the EMA50, and it tries to consolidate positively despite the stochastic negativity, to keep our expectations for the bullish trend that targets 1747.43 then 1785.00 mainly.

The triangle shown on the above chart has a strong resistance at 1720.00 now, and the price needs to breach this level to confirm the rally towards the awaited targets, taking into consideration that breaking 1678.45 will stop the suggested rise and put the price under the downward corrective pressure.

The expected trading range for today is between 1690.00 support and 1735.00 resistance.

Expected trend for today: bullish.

The dollar against the yen trades bounced lower after testing the 107.68 level, and as we indicated yesterday, this level represents the resistance of the sideways range that confines the intraday trading, and whose support level is at 106.44, to make the bearish bias likely for the day.

In general, the sideways range will remain in control until the price is able to breach one of the above-mentioned levels, noting that breaking the support will put the price under the negative pressure that initially targets 105.20 while breaking the resistance will lead the price to achieve additional gains that reach 109.22.

The expected trading range for today is between 106.40 support and 108.00 resistance.

Expected trend for today: sideways.

EURUSD

The pair is turning up, remaining in a wide range of 1.0750–1.1000 amid the risk of a new wave of coronavirus pandemic. Also, investors seem hesitant to actively buy the dollar ahead of Jerome Powell’s speech.

Technical side:

The price is above the middle Bollinger band, above SMA 5, but still below SMA 14. RSI is below the 50% level and has turned up. Stoch are growing after leaving the oversold zone.

Trading recommendations:
If the pair consolidates above 1.0820, it will rise locally to 1.0875 with a likely further growth to 1.1000.

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