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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.

Gold quotes are correcting down after a sharp rise on Monday amid the rising fears of a more global coronavirus spread with a strong negative impact on global economic growth.

The price is below the middle Bollinger band, below SMA 5 and SMA 14. Moving signals give a sell signal at their intersection. RSI is at 50% and indicates a weakening decline. Stoch enter the oversold zone.

Trading recommendations:

The price may be pressured by the growing demand for risk assets and positive US economy data to be published today. In this case, expect a decrease to the levels of 1620.00 and 1611.50.

Global markets continue to decline amid the spread of the coronavirus outside China. The stock is trading flat in the range of its lower border. Breaking through the lower limit of the accumulation zone (38.00) will result in a fall to the range of the support level of 36.90 and below. 

 Trading recommendations:

Sell below 38.00.

Stop loss for 38.70.

The resistance level of 1.7150 is holding back buyers. A bearish divergence has formed on Awesome Oscillator. Breaking through the round secondary level of 1.7080 will result in the formation of a descending wave pattern and exit the zone of the round important level of 1.7100.

Trading recommendations:

Sell below 1.7080.

Stop Loss: 1.7150.

Target levels: 1.7020; 1.6980.

If the price returns to the round intermediate level of 1.7150, cancel the trading plan.

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.

On the weekly timeframe, the historical support level of 1.0607 is being tested. Awesome Oscillator indicator generates a bullish divergence, while Stochastic Oscillator signals oversoldness.

A Bullish divergence along with oversoldness have also formed on the H1 timeframe. The pair is trading in the range of the round important 1.0600 level.

Trading recommendations:

Buy while an ascending structure is forming strictly above the round secondary level of 1.0620.

Stop loss under the local minimum.

Target levels: 1.0650; 1.0680.

The overall trend is downward. The support level of 136.50 is holding back sellers. Breaking through the level will result in the formation of a descending pattern 123. The moving averages of Stochastic Oscillator indicator have crossed and are located near the overbought zone.

Trading recommendations:

Sell below 136.50.

Stop Loss: 138.87.

Target levels: 133.30; 130.00.

The pair is consolidating above 1.0780 in anticipation of data on production indicators and consumer inflation in Germany and the eurozone, as well as in the US. If the overall values are weaker than expected in Germany and the eurozone, and at least at the predicted level in the US, the pair will be likely to resume decline.

The price is below the middle line of the Bollinger indicator, at SMA 5 and below SMA 14. RSI is below the 50% level and moves horizontally. Stoch are uninformative.

Trading recommendations:

Sell the pair after it crosses the level of 1.0780 with a likely target of 1.0720 or even below 1.0700.

The fluctuation of the US dollar in a narrow range slanted toward decline during the Asian session to witness its bounce for the second session from the top since the beginning of the 25th of last April against the Japanese yen, following the developments and economic data that it followed from the Japanese economy, the third largest economy in the world and on the threshold of developments and economic data expected Today, Friday, by the US economy, the largest economy in the world, which includes the speech of members of the Federal Open Market Committee.

At 05:59 am GMT, the US dollar pair fell against the Japanese yen by 0.13% to 111.95 levels compared to the opening levels at 112.10, after the pair achieved its lowest level during the trading session at 111.92, while achieving the highest at 112.19.

We have followed the disclosure of the initial reading of the industrial purchasing managers' index by Markit on Japan, which showed the contraction widened to 47.6 compared to 48.8 in January, before we witnessed the Japanese economy, the third largest industrialized country in the world, issued a reading of the index of all industrial activities, which Stability at zero levels versus a 0.9% rise in November showed worse than expectations for slowing growth to 0.3%.

On the other hand, it is expected that the Federal Open Market Committee member and Dallas Fed President Robert Kaplan will deliver the opening speech at a conference hosted by the Dallas Fed, before we witness the disclosure of the initial reading of the Markit manufacturing PMI for the United States, which may reflect the stability of The breadth was at 53.3, little changed from the previous reading in January.

This also comes in conjunction with the disclosure of the initial reading of the Markit Services PMI for America, which may show a shrinkage in value to 51.5 compared to 51.9 in the previous reading in January, and before we witness the disclosure of housing market data with the release of the Home Sales Index The list, which could show a decline of 1.7% to 5.46 million homes, compared to a rise of 3.6% at 5.54 million homes in December.

Up to the participation of two other members of the Federal Committee in the US Monetary Policy Forum 2020 in New York, each of the Deputy Governor of the Federal Reserve, Lyle Brenard, who is scheduled to participate in a seminar on monetary policy for the next recession, and that we are witnessing the participation of another Deputy Governor of the Federal Reserve, who is Richard Clarda is in another panel discussion entitled "Hall of Mirrors: Feedback between Monetary Policy and Financial Markets".

Technical analysis

The dollar against the yen continues its bullish rally to breach the 111.50 level and settles around the 112.00 barrier, which supports expectations of achieving more gains in the short and intraday basis, and the path is open for visiting the bullish channel resistance that appears in the picture at 112.70.

Therefore, we will continue to favor the bullish trend for the upcoming period, taking into consideration that the continuation of the expected rise requires stability above 111.30.

The expected trading range for today is between 111.50 support and 112.70 resistance.

Expected trend for today: bullish.

Gold price futures fluctuated in a narrow range tilted to the upside during the Asian session to witness the highest since February 15, 2013 amid the rebound in the US dollar index for the second session from the top since April 21 of 2017 according to the inverse relationship between them on The expected economic developments and data on Friday by the US economy and in the shadows of investors' assessment of the spread of the Corona virus in exchange for stimulus from global central banks.

At exactly 04:12 AM GMT, gold futures for April delivery rose 0.25% to trade at $ 1,627.60 per ounce compared to the opening at $ 1,623.60 per ounce, knowing that the contracts started the trading session on an upward price gap after it concluded yesterday's trading At $ 1,620.50 an ounce, with the US dollar index down 0.01% to 99.84 compared to the opening at 99.85.

It is expected that the Federal Open Market Committee member and President of the Dallas Federal Reserve Bank Robert Kaplan will deliver the opening speech at a conference hosted by the Federal Reserve Bank of Dallas, before we witness the disclosure of the initial reading of the manufacturing PMI for the United States, the world's largest industrial country, which It may reflect the stability of the expansion at a value of 53.3, little changed from the previous reading last January.

This also comes in conjunction with the disclosure of the initial reading of the Markit Services PMI for America, which may show a shrinkage in value to 51.5 compared to 51.9 in the previous reading in January, and before we witness the disclosure of housing market data with the release of the Home Sales Index The list, which may show a decline of 1.7% to 5.46 million homes, compared to a rise of 3.6% at 5.54 million homes last December.

Up to the participation of two other members of the Federal Committee at the US Monetary Policy Forum 2020 in New York, each of the Deputy Governor of the Federal Reserve Bank of Elle Brenard, who is scheduled to participate in a seminar on monetary policy for the next recession, and we are witnessing the participation of another Deputy Governor of the Federal Reserve, Richard Clararda is in another panel discussion entitled "Hall of Mirrors: Feedback between Monetary Policy and Financial Markets".

This comes hours after the minutes of the Federal Open Market Committee meeting held on January 28-29, during which members of the committee approved the maintenance of short-term benchmark interest rates between 1.50% and 1.75% for the third meeting, respectively. The minutes mentioned that the current monetary policy is appropriate and will remain in place for some time, indicating that the interest on federal funds remains unchanged during the coming period.

It is noteworthy that the Federal Reserve Governor Jerome Powell expressed during the press conference held after the meeting of the Federal Committee at the time, that the decisions of the committee depend on the economic data received, while touching that if inflation rates remain below the target of the Federal Reserve, this may lead to a reduction Expectations of inflation and thus reduce short-term interest rates, adding that inflation is expected to reach the target within the next three months.

Powell also noted at the time that the Federal Reserve is seeking to avoid the stability of inflation below the target of two percent, with his statement that there will be slight adjustments to the reserve reserve mandatory and that the general budget will continue to expand over time, adding that the Federal Reserve expects support from repurchases during April / This April, with the indication that it is regrettable that the Coruna virus is spreading and that it is expected to have a negative impact on the Chinese economy.

Powell also touched on the fact that the Federal Reserve is closely monitoring the situation regarding the spread of the Corona virus and its impact on the economy, while stating that there are some cautious optimism about the global economy, pointing out that the financial conditions are improving and trade tensions have declined, indicating that his country signed with China for the first stage of the trade agreement. This is in addition to the decrease in the chances of Britain leaving without an agreement from the European Union, which contributes to supporting the positive expectations.

Other than that, we followed on Thursday, WHO Director-General Tidros Adhanum Gebresos told the media that the decrease in the number of coronavirus cases outside China "may not be the same for a long time", and this came in conjunction with South Korea's announcement of the first death from the deadly virus And the benefit of the rise of new confirmed cases there, sharply, specifically by 22% to a total of 104 cases infected with the Corona virus.

On the other hand, we also followed yesterday that the monetary policy makers of the People's Bank of China (the Chinese Central Bank) reduced the interest rate on lending for a year by 10 basis points and for a period of five years by 5 basis points, and that step came hours after the Chinese Central Bank last Monday By reducing the interest rate of the average term loans by ten basis points to 3.15% from 3.25%, amid the intensification of liquidity easing measures and financing conditions in the face of financial pressures on the second largest economy in the world due to the spread of Corona.

Technical analysis

Gold price managed to achieve our second target 1625.00 and is trying to surpass it now, to support the chances of achieving a further rise in the short term, as the price organizes within bullish channels that appear in the above chart, noting that our next target reaches 1668.00.

Consequently, the bullish trend scenario will remain likely during the upcoming sessions with support from the EMA50, taking into consideration that a break of 1611.20 will press the price to drop and test the support of the bullish channel at 1577.00 before any new attempt to rise.

The expected trading range for today is between 1615.00 support and 1650.00 resistance.

Expected trend for today: bullish.