Analytic reviews

The Australian dollar fell slightly in today's trading and yesterday, following comments by Central Bank President Philip Low on monetary policy.

"Lu" explained in press statements that the Australian economy is already paying the price of climate change and is being seriously affected.

"Lu" indicated that he expected the policy of low interest rates to continue, perhaps for years, in light of the continuing pressures on the Australian economy.

The head of the central bank also warned of the escalating household debt in the country and its severe negative impact on the Australian economy.

As for the "Corona" virus, the Chinese government said that the number of deaths from the virus rose to more than 1,360 people, while nearly sixty thousand others were infected, and Japan announced the first death of the virus on its soil for a woman over the age of eighty years.

In terms of trading, the Australian dollar fell against the US currency 0.1% to 0.6712, and recorded the highest price today at 0.6730 and the lowest price at 0.6709.

On the other hand, investors are looking to the US economy to reveal the retail sales reading, which represents about half of consumer spending, which represents more than two-thirds of the gross domestic product of the United States, and that may reflect the stability of growth at 0.3%, little changed from the previous reading of the month December, while a substantial reading of the same indicator may show a slowdown in growth to 0.3% versus 0.7% in December.

This comes in conjunction with the release of the import price index, which may explain a 0.2% decline against a rise of 0.3% in December, while the annual reading of the same indicator may show a slowdown in the pace of growth to 0.1% versus 0.5%, before we witness the disclosure of industrial sector data For the largest industrialized country in the world with the release of the industrial production index, which may reflect a decline in the decline to 0.2% compared to 0.3% in December.

In the same context, the reading of the energy utilization index may show a decrease to 76.9% compared to 77.0% in December, before we witness the disclosure of the preliminary reading of the University of Michigan's index of consumer confidence, which may show a widening of the value to 99.5 compared to 99.8 in December. Last January, coinciding with the release of the business inventories reading, which may explain an increase of 0.1% compared to a decline of 0.2% last November.

To the talk of Federal Open Market Committee member and President of the Federal Reserve Cleveland Bank Loretta Mester about payment updates at the University of South Florida in Sarasota, and this comes hours after the activities of the semi-annual certification of the Governor of the Federal Reserve Jerome Powell about monetary policy before each of the Financial Services Committee In the House of Representatives last Tuesday and the Banking Committee in the Senate last Wednesday.

Technical analysis

The Australian dollar versus the US dollar shows weak trading since yesterday, and maintains its stability below the level of 0.6754, which keeps the bearish trend scenario in place for the coming period, supported by the EMA50, noting that our targets start at 0.6670 and extend to 0.6560 after crossing the previous level.

The expected trading range for today is between 0.6670 support and 0.6755 resistance.

Expected trend for today: bearish.

The single currency fluctuated the euro in a narrow range slanting back down during the Asian session to witness the lowest since April 24 of 2017 against the US dollar on the threshold of developments and economic data expected on Friday by the economies of the euro area and the US economy the largest economy in the world.

At exactly 05:20 AM GMT, the euro against the US dollar fell 0.06% to 1.0835 levels compared to the opening levels at 1.0841, after the pair achieved its lowest level in three years at 1.0827, while achieving the highest during the trading session at 1.0843.

Markets are currently awaited by the largest economies of the euro area, Germany, to reveal the seasonally adjusted preliminary reading of the fourth quarter GDP indicator, which may reflect stability at 0.1%, little changed from the last third quarter, while the seasonally adjusted annual reading of the same indicator may show a slowdown The growth rate increased to 0.2% compared to 1.0% in the previous annual reading for the third quarter.

This comes in conjunction with the release of the wholesale stocks price index reading also for Germany, which may reflect a 0.1% increase against stability at zero levels last December, before we witness from Italy the third largest economy in the region the release of the trade balance reading, which may explain the widening surplus to 5.23 billion euros, compared to 4.87 billion euros in December.

In order to reveal the seasonally adjusted preliminary reading of the euro area GDP indicator, which may reflect the stability of growth at 0.1% unchanged from the third quarter, as the annual reading of the index may show the stability of growth at 1.0%, in conjunction with the initial reading of the change in employment index showed stability Growth at 0.1%, and the seasonally adjusted reading of the Trade Balance Index showed the surplus narrowed to 19.1 billion euros from 19.2 billion euros in November.

On the other hand, investors are looking to the US economy to reveal the retail sales reading, which represents about half of consumer spending, which represents more than two-thirds of the gross domestic product of the United States, and that may reflect the stability of growth at 0.3%, little changed from the previous reading of the month December, while a substantial reading of the same indicator may show a slowdown in growth to 0.3% versus 0.7% in December.

This comes in conjunction with the release of the import price index, which may explain a 0.2% decline against a rise of 0.3% in December, while the annual reading of the same indicator may show a slowdown in the pace of growth to 0.1% versus 0.5%, before we witness the disclosure of industrial sector data For the largest industrialized country in the world with the release of the industrial production index, which may reflect a decline in the decline to 0.2% compared to 0.3% in December.

In the same context, the reading of the energy utilization index may show a decrease to 76.9% compared to 77.0% in December, before we witness the disclosure of the preliminary reading of the University of Michigan index of consumer confidence, which may show a widening of the value to 99.5 compared to 99.8 in December. Last January, in conjunction with the release of the business inventories reading, which may explain an increase of 0.1% compared to a decline of 0.2% in November.

To the talk of Federal Open Market Committee member and President of the Federal Reserve Cleveland Bank Loretta Mester about payment updates at the University of South Florida in Sarasota, and this comes hours after the activities of the semi-annual certification of the Governor of the Federal Reserve Jerome Powell about monetary policy before each of the Financial Services Committee In the House of Representatives last Tuesday and the Banking Committee in the Senate last Wednesday.

Technical analysis

The EURUSD pair managed to confirm a break of the 1.0860 level after the daily candle closed below it, which opens the way for the continuation of the downside trend in the medium and long term, awaiting the direction towards 1.0760 as the next main station.

Thus, the bearish bias will remain likely for the coming period supported by the negative pressure formed by the EMA50, noting that breaching 1.0860 and holding above it will stop the current negative pressure and lead the price to start recovery attempts targeting the 1.1035 areas initially.

The expected trading range for today is between 1.0750 support and 1.0900 resistance.

Expected trend for today: bearish.

The gold price continues to fluctuate around 1575.90 level, and we are still waiting for the breach of this level to confirm the bullish wave extension on the intraday and short term, where our next target is at 1611.20.

The current stochastic negativity explains the reasons why it is difficult to achieve the required breach, waiting for a positive momentum sufficient to push the price to exceed the 1575.90 level and continue the expected rise, while noting that the continuation of the bullish wave requires stability above 1554.10.

The expected trading range for today is between 1560.00 support and 1595.00 resistance.

Expected trend for today: bullish.

The fluctuation of the US dollar in a narrow range slanted toward decline during the Asian session to witness its bounce for the third session from the top since January 21 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 Friday by the economy The American is the largest economy in the world.

At 05:59 am GMT, the US dollar pair fell against the Japanese yen by 0.01% to 109.81 levels compared to the opening levels at 109.82, after the pair achieved its lowest level during the trading session at 109.73, while it achieved the highest at 109.91.

On the Japanese economy, we have followed the third largest economy in the world and the third largest industrialized country globally, the disclosure of industrial sector data with the release of the December industrial index of Teratari, which showed a 0.2% decline compared to a 1.4% increase, which was modified from a 1.3% growth in the previous reading For the month of last November, contrary to expectations that a slowdown in the pace to 0.2%.

On the other hand, investors are looking to the US economy to reveal the retail sales reading, which represents about half of consumer spending, which represents more than two-thirds of the gross domestic product of the United States, and that may reflect the stability of growth at 0.3%, little changed from the previous reading of the month December, while a substantial reading of the same indicator may show a slowdown in growth to 0.3% versus 0.7% in December.

This comes in conjunction with the release of the import price index, which may explain a 0.2% decline against a rise of 0.3% in December, while the annual reading of the same indicator may show a slowdown in the pace of growth to 0.1% versus 0.5%, before we witness the disclosure of industrial sector data For the largest industrialized country in the world with the release of the industrial production index, which may reflect a decline in the decline to 0.2% compared to 0.3% in December.

In the same context, the reading of the energy utilization index may show a decrease to 76.9% compared to 77.0% in December, before we witness the disclosure of the preliminary reading of the University of Michigan's index of consumer confidence, which may show a widening of the value to 99.5 compared to 99.8 in December. Last January, coinciding with the release of the business inventories reading, which may explain an increase of 0.1% compared to a decline of 0.2% last November.

To the talk of Federal Open Market Committee member and President of the Federal Reserve Cleveland Bank Loretta Mester about payment updates at the University of South Florida in Sarasota, and this comes hours after the activities of the semi-annual certification of the Governor of the Federal Reserve Jerome Powell about monetary policy before each of the Financial Services Committee In the House of Representatives last Tuesday and the Banking Committee in the Senate last Wednesday.

Technical analysis

The dollar versus yen is showing sideways and narrow range trading around the EMA50, noting that the stochastic is providing a positive crossover now, waiting for the price to stimulate the resumption of the expected bullish direction for the upcoming period, which targets the 110.50 level as a next station.

Therefore, we will maintain our positive expectations provided that the price maintains its stability above 109.33.

The expected trading range for today is between 109.30 support and 110.50 resistance.

Expected trend for today: bullish.

The overall trend is downward. The Stochastic Oscillator signals overboughtness, and the Awesome Oscillator shows a bearish divergence. If the price fixes below the support level of 138.50, a further drop within the overall downtrend will be possible.

Trading recommendatons:

Sell below 138.50.

Stop loss: 140.00.

Target levels: 137.50; 135.70; 133.30.

The price pivot zone of 0.9790 holds back buyers. A bearish divergence has formed on Awesome Oscillator indicator, and Stochastic Oscillator signals overboughtness. An ascending truncated pattern of the H4 level was formed. The lower boundary of the Ichimoku cloud serves as the resistance level.

 Trading recommendations:

Buy while a descending pattern is forming, where the wave (A) breaks through the inclined channel of the ascending truncated pattern of the H4 level.

Stop loss: 0.9790.

Target levels: 0.9720; 0.9681; 0.9623.

The pair is above 1.0860. It is under pressure due to a prospect of a softer monetary policy by the ECB. The pair may continue to drop today if Germany’s consumer inflation data shows no growth, while the Amerca’s indicator increases.

The price is below the middle Bollinger band, below SMA 5 and SMA 14. RSI is located in the oversold zone and moves horizontally. Stoch are in the oversold zone and uninformative.

Trading recommendations:

Sell the pair with a likely target of 1.0800 after it drops below 1.0860.

Stochastic Oscillator báo hiệu mua quá mức. Awesome Oscillator cho thấy một sự phân kỳ giảm giá. Biểu đồ cho thấy một đột phá sai. Một đột phá của vùng trục giá 341.72 sẽ dẫn đến mô hình giảm dần 1-2-3.

Đề xuất giao dịch:

Bán khi giá được cố định dưới vùng trục giá 341.72.

Dừng lỗ: 347.82.

Cấp mục tiêu: 335.86; 325.42; 315.

Stochastic Oscillator signals overboughtness. Awesome Oscillator shows a bearish divergence. The chart shows a false breakout. A breakout of the price pivot zone of 341.72 will result in a descending pattern 1-2-3.

Trading recommendations:

Sell as the price is fixed below the price pivot zone of 341.72.

Stop Loss: 347.82.

Target levels: 335.86; 325.42; 315.

Analysis based on round-number levels, price channels and modified Elliot Waves

EURUSD

Daily timeframe shows the pair reaching the support level of 1.0890. Awesome Oscillator shows a bullish divergence, while Stochastic Oscillator signals oversoldness.

Ascending pattern 1-2-3 is forming on the H1 timeframe. The price is within the range of the round important level of 1.0900. Round secondary level 1.0920 was already tested by a supposed wave 1. Aweseome oscillator shows a bullish divergence.

Trading recommendations:

Buy above 1.0925.

Stop Loss: 1.0890.

Target levels: 1.0950 (close 0.5 and move to breakeven); 1.1000.