Analytic reviews

Gold is correcting downward after reaching a local maximum after the Fed cut the interest rates by 0.50 at an emergency meeting. This correction is likely to be associated with the possibly positive opening of trading in the US today, which is hinted at by the US stock indices. Positive sentiment will lead to an increase in demand for risk assets, which will put pressure on gold quotes.

The price is above the middle Bollinger band, above SMA 5, but below SMA 14. RSI is above the 50% level and turns down. Stoch turned in the overbought zone.

Trading recommendations:

If the quotes fall below the level of 1635.00 and consolidate below it, gold will continue to fall to 1609.00.

The currency pair is trading in the range of the round important level 0.6000. A bullish divergence has formed on Awesome Oscillator. Leaving the zone of the round important level will result in the formation of an ascending pattern 1-2-3.

Trading recommendations:

Buy above 0.6025.

A stop loss for 0.5972.

Target levels: 0.6118; 0.6218.

When the profit is equal to the stop order, transfer it to breakeven.

When buying an option against a trend, it is necessary to confirm other technical analysis tools – the presence of divergence, candlestick reversal patterns. Buy against the trend strictly on the retest level! Buying an option before publishing important economic news is considered risky.  The expiration time depends on the strength of the level and confirmation by additional technical and fundamental analysis tools.

Global markets are gradually recovering from a strong fall.

The overall trend for the stock is upward. Awesome Oscillator shows a bullish divergence, and Stochastic Oscillator signals oversoldness. Breaking through 203.90 will result in the formation of an ascending pattern of 1-2-3.

Trading recommendations:

Buy above 203.90.

A stop loss of 195.33.

Target levels: 211.42; 221.50.

The increase in oil prices is supported by the expectation that the Fed will lower the interest rates, which will weaken the dollar on the one hand and stimulate demand for risk assets on the other.

The price is below the middle Bollinger band, at SMA 5, but below SMA 14. RSI is below the 50% level and moves horizontally. Stoch are growing.

Trading recommendations:

If the pair holds below the level of 1.3345, consolidates below it, it will continue to drop to 1.3270.

The currency pair is testing the historical support level that was formed in 2011.

A descending truncated pattern of the H4 level has formed on the H1 timeframe. A bullish divergence has formed on Awesome Oscillator. The breakout of 0.7207 will result in the formation of an ascending M15 level pattern.

Trading recommendations:

Buy above 0.7207.

Stop loss: 0.7135.

The target levels: 0.7249; define the second goal based on your trading style.

The US dollar fell during the Asian session to witness its bounce back for the sixth session in nine sessions from the top since April 25 of 2019 against the Japanese yen after the developments and economic data that were followed by the Japanese economy and amid the scarcity of economic data today by the American economy, the largest economy in The world is looking forward to developments in the spread of the Coruna virus, which could make it a global pandemic.

At exactly 05:58 am GMT, the US dollar pair fell against the Japanese yen by 0.51% to 107.78 levels compared to the opening levels at 108.33, after the pair achieved its lowest level during the trading session at 107.66, while achieving the highest at 108.54.

On the Japanese economy, we have followed the disclosure of the annual reading of the monetary base index by the Bank of Japan, which showed an acceleration in the growth rate to 3.6% compared to 2.9% last December, surpassing expectations that indicated an acceleration in the growth rate to 3.0%, and it is reported that The Japanese central bank has started using this indicator as its main operating objective for the monetary base scheme since April of 2013.

This came, before we witnessed the disclosure of the consumer confidence index, which showed a decrease to 38.4 in line with expectations, compared to 39.1 in the previous reading last January. Otherwise, we followed yesterday, Japanese Prime Minister Shinzo Abe expressed that he might By preparing a law enabling him to declare a state of emergency in his country due to the spread of Coruna virus.

In another context, we also followed yesterday the Bank of Japan Governor Hariko Kuroda’s pledge that the Bank of Japan will take the necessary steps to stabilize the financial markets, and the Japanese central bank quickly demonstrated the type of measures it would take by offering to buy 500 billion yen ($ 4.6 billion) of Government bonds by repurchase agreement to provide liquidity to market participants, which in turn contributed to allaying investor anxiety about the risks of spread.

Given the developments of the Coronavirus, which started in Wuhan, China, it has so far killed more than 3,000 people and confirmed that there are at least 89,000 cases worldwide, and we followed yesterday the Director-General of the World Health Organization, Tedros Adhanom, stated that the situation in South Korea, Italy and Iran as well as Japan have become the organization's biggest concern.

On the other hand, investors are currently looking forward to the talk of Federal Open Market Committee member and President of the Federal Reserve Cleveland Bank Loretta Mester about the economic outlook and monetary policy at the annual dinner of the Society of Professional Economists in London, and this comes hours after the US President criticized the Fed’s position and the political situation The current criticism, expressing the delay of the Fed and his Powell Governor in taking decisions.

U.S. President Trump, through his Twitter account via his official account on Twitter, also expressed that Germany and a number of countries are pumping money to support their economy, and that the major central banks in other countries are more strict in making decisions, adding that due to many reasons the United States should have The lowest rate of interest, explaining that this was not done by the Federal Reserve and his Powell Governor.

Markets are currently pricing the Federal Reserve to resume cutting interest on federal funds this year and reducing them by 50 basis points to between 1.00% and 1.25% at the March 17-18 meeting, and after cutting them three times by 25 basis points last year To 1.50% and 1.75%, and looking forward also to the Federal Committee revealing its expectations for the future of interest rates and the rate of growth, inflation and unemployment for the next three years.

Technical analysis

The dollar versus yen retested the previously broken 108.34 level and maintained its stability below it, to resume the bearish bias and approach the pivotal support 107.42, with a reminder that we need to break this level to confirm the continuation of the descending wave in the intraday and short term, whose next target reaches 106.28.

From here, the bearish trend will remain valid for today, supported by the stochastic loss of positive momentum, noting that the continuation of the downside wave depends on stability below 108.34 and the most important below 109.25.

The expected trading range for today is between 107.00 support and 108.40 resistance.

Expected trend for today: bearish.

Google shares returned to rise again after the decline that occurred at the end of last week. The stock moved up and crooked to trade within the ascending channel again.

The stock movement remains below the 7-20-50 moving averages that move above the price, press it and form resistance levels for it.

The stochastic oscillator has left the oversold zone on an upward path, and this is reflected in the bullish price movement.

Expected trend for today: bullish.

Gold futures rose to witness their bounce back for the third session from the lowest since February 7, with the dollar index rebounding to the seventh session in nine sessions from the top since April 21, 2014 according to the inverse relationship between them after the decisions and directions of the Reserve Bank of Australia and the aspiration of today Tuesday to the events of the Group of Seven industrial meeting and the upcoming talk of a member of the Federal Open Market Committee and President of the Cleveland Bank Federal Reserve Loretta Mister in London and amid hopes of a global stimulus to reduce the economic damage to Corona.

At exactly 04:44 AM GMT, gold price futures for April delivery rose 0.95% to trade at $ 1,601.00 per ounce compared to the opening at $ 1,586.00 per ounce, knowing that the contracts started the trading session on a falling price gap after it concluded yesterday's trading At $ 1,594.80 an ounce, with the US dollar index down 0.15% to 97.41 compared to the opening at 97.57.

We have followed the Reserve Bank of Australia's resumption of interest rates a little while ago this year, with a 25 basis point cut to an absolute minimum of 0.50%, which came in line with expectations, with the benefit from the Australian Central Bank’s interest rate statement preparing for a bank Australia reserves for further cuts later, after fixing it in the previous three meetings and following its three-fold cut of 25 basis points last year.

Otherwise, the markets are looking to the activities of the G-7 conference, which will be attended by central bankers and finance ministers from Canada, Italy, France, Germany, Japan and the United Kingdom in addition to the United States of America, and the call will be led by US Treasury Secretary Stephen Munchen and Fed Governor Jerome Powell are among the efforts to coordinate the financial and economic response to Corona.

In another context, investors are looking forward to the talk of Federal Open Market Committee member and President of the Federal Reserve Bank of Cleveland Loretta Mester about economic expectations and monetary policy at the annual dinner of the Society of Professional Economists in London, and this comes hours after the US President criticized the Fed’s position and monetary policy The current, expressing the delay of the Fed and his Governor Powell in decision-making.

U.S. President Trump, through his Twitter account via his official account on Twitter, also expressed that Germany and a number of countries are pumping money to support their economy, and that the major central banks in other countries are more strict in making decisions, adding that due to many reasons the United States should have The lowest rate of interest, explaining that this was not done by the Federal Reserve and his Powell Governor.

Markets are currently pricing the Federal Reserve to resume cutting interest on federal funds this year and reducing them by 50 basis points to between 1.00% and 1.25% at the March 17-18 meeting, and after cutting them three times by 25 basis points last year To 1.50% and 1.75%, and looking forward also to the Federal Committee revealing its expectations for the future of interest rates and the rate of growth, inflation and unemployment for the next three years.

In another context, we followed yesterday the Governor of the Bank of Japan, Harikoiko Kuroda, pledging that the Bank of Japan will take the necessary steps to achieve stability in the financial markets, and the Japanese Central Bank has quickly demonstrated the type of measures that it will take by offering to buy 500 billion yen ($ 4.6 billion) of bonds. The government agreed to a buy-back agreement to provide liquidity to market participants, which in turn contributed to allaying investors ’concerns about the risks of the spread of Corona.

It is noteworthy that gold futures contracts witnessed Friday their worst daily performance since June 20, 2013 and their worst weekly performance since the beginning of November 2016, as they reflected their first monthly losses in three months with the transmission of bleeding of global stock indices for gold contracts at that time. , Where some of the report mentioned that investors sold gold to cover their positions in global stocks, which last week lost more than $ 5 trillion of its market value.

Given the developments of the Coronavirus, which started in Wuhan, China, it has so far killed more than 3,000 people and confirmed that there are at least 89,000 cases worldwide, and we followed yesterday the Director-General of the World Health Organization, Tedros Adhanom, stated that the situation in South Korea, Italy and Iran as well as Japan have become the organization's biggest concern.

Technical analysis

Gold price continues to fluctuate around the support of the bullish channel, and it needs to get enough positive momentum to push the price to resume the main bullish trend, which targets 1633.58 then 1689.33 levels mainly.

The stochastic oscillator is trying to get rid of the negative momentum to support the upside expectations, and in general, we continue to suggest the bullish trend for the next period unless the 1571.22 level is broken and stability remains with a daily closing below it.

The expected trading range for today is between 1585.00 support and 1635.00 resistance.

Expected trend for today: bullish.

The euro currency fluctuated in a narrow range tilted to the upside during the Asian session to witness its rebound to the seventh session in nine sessions from the lowest since mid-April 2017 against the US dollar on the threshold of developments and economic data expected by the euro area economies and amid the scarcity of economic data on Tuesday from Before the American economy the largest economy in the world.

At exactly 05:34 am GMT, the euro pair rose against the US dollar by 0.11% to 1.1046 levels compared to the opening levels at 1.1134 after the pair achieved its highest level during the trading session at 1.1156, while it achieved the lowest at 1.1120.

The markets are looking forward to the issuance of the treasury budget reading for France, the second largest economy in the euro area, before we witness by Spain, the fourth largest economy in the region, the release of the unemployment change index, which may reflect an increase of 8.2 thousand compared to a rise of 90.2 thousand in January, and before the reading Italy's unemployment rate index, the region's third largest economy, may show its stability at 9.8% in January.

This comes before we witness about the economies of the region as a whole the disclosure of inflation data with the release of the preliminary annual reading of the consumer price index, which may reflect the stability of the pace of growth at 1.4% during February, while the initial substantive annual reading of the same indicator may show the acceleration of the pace of growth to 1.2% Compared to 1.1% in the previous annual reading for January.

It also comes in conjunction with the disclosure of other inflation data for the economies of the region as a whole with the release of the producer price index, which is an initial indication of inflationary pressures, which may show 0.5% growth against stability at zero levels last December, while the annual reading of the index may show By the same token, the contraction shrank to 0.4% from 0.7%, with the unemployment rate reading for the region as a whole also showing stability at 7.4% during January.

On the other hand, investors are currently looking forward to the talk of Federal Open Market Committee member and President of the Federal Reserve Cleveland Bank Loretta Mester about the economic outlook and monetary policy at the annual dinner of the Society of Professional Economists in London, and this comes hours after the US President criticized the Fed’s position and the political situation The current criticism, expressing the delay of the Fed and his Powell Governor in taking decisions.

U.S. President Trump, through his Twitter account via his official account on Twitter, also expressed that Germany and a number of countries are pumping money to support their economy, and that the major central banks in other countries are more strict in making decisions, adding that due to many reasons the United States should have The lowest rate of interest, explaining that this was not done by the Federal Reserve and his Powell Governor.

Markets are currently pricing the Federal Reserve to resume cutting interest on federal funds this year and reducing them by 50 basis points to between 1.00% and 1.25% at the March 17-18 meeting, and after cutting them three times by 25 basis points last year To 1.50% and 1.75%, and looking forward also to the Federal Committee revealing its expectations for the future of interest rates and the rate of growth, inflation and unemployment for the next three years.

Technical analysis

The euro against the dollar pair achieved a strong rise yesterday to reach the main downside channel resistance, and we note that the price is making attempts to breach it, which supports the chances of achieving more expected gains during the coming period, and we believe that the path is open to achieving our next target which is located at 1.1240.

Consequently, the bullish trend will remain dominant in the intraday and short term, noting that breaching the target level will push the price to 1.1418 as the next station, while the suggested rise will remain valid on condition of stability above 1.1085.

The expected trading range for today is between 1.1085 support and 1.1240 resistance.

Expected trend for today: bullish.