Analytic reviews

The US dollar fluctuated in a narrow range tilted to the upside during the Asian session to witness its bounce to the second session from the lowest since January 8, when it tested the lowest since October 10 against the Japanese yen after the developments and economic data that we followed about the Japanese economy On the cusp of developments and economic data expected on Monday by the US economy, the largest economy in the world.

At exactly 05:51 am GMT, the US dollar pair rose against the Japanese yen by 0.08% to 108.52 levels compared to the opening levels at 108.43, after achieving its highest level during the trading session at 108.58, while achieving the lowest at 108.32, knowing that The pair started the trading session on an upward price gap after it concluded the trading last week at 108.35.

We have followed the disclosure of the final reading of the manufacturing PMI by Markit for Japan, the third largest industrial country in the world, which showed the contraction widened to 48.8 compared to the initial reading of last month at 49.3 and 48.4 last December, and we would like to point out that A reading reading at a value of 50 or higher reflects a breadth, while a reading of less than 50 indicates a contraction.

On the other hand, investors are currently awaiting by the US economy the disclosure of the final reading of the manufacturing PMI by Markit on the United States of America the largest industrial country in the world, which may reflect the stability of the expansion at a value of 51.7 without any change from the initial reading for January January, against a value of 52.4 in December.

This comes before we witness the disclosure of the Institute of Industrial Supply index reading, which may show contraction shrinkage to 48.5 compared to 47.2 in December, while the reading of the Institute of Industrial Supply measured in prices may expand to 52.0 compared to 51.7 in December, in conjunction with the release of the construction spending index, which reflects a slowdown in growth to 0.5% compared to a decline of 0.6% in November.

Technical analysis

The dollar versus yen succeeded in touching our first awaited target at 108.40 and settling there, as it attempts to break it, which supports expectations of the descending wave extending towards 107.45 which represents our next negative target.

Thus, the bearish trend scenario will remain intact and active in the intraday and short term, supported by the negative pressure formed by the EMA50, noting that the continuation of the expected decline depends on stability below 109.33.

The expected trading range for today is between 107.70 support and 109.00 resistance.

Expected trend for today: bearish.

Gold price futures fell during the Asian session to witness their rebound from the top since January 8, while the highest contract experienced since March 22, 2013 amid the US dollar index rebound to the second session from its highest since 17 of this month according to the inverse relationship Between them after the People's Bank of China (the Central Bank of China) pumped liquidity to calm financial markets and on the cusp of developments and economic data expected on Monday by the US economy and in the shadow of the spread of the Corona virus.

At exactly 04:24 AM GMT, gold price futures for April delivery fell 0.78% to trade at $ 1,585.40 per ounce compared to the opening at $ 1,597.80 per ounce, knowing that the contracts started the trading session on an upward price gap after the week's trades ended At $ 1,587.90 an ounce, with the US dollar index rising 0.06% to 97.49 compared to the opening at 97.44.

On Sunday, the People's Bank of China announced that it intends to inject 1.2 trillion yuan ($ 173 billion) of liquidity into the market through repurchases in the open market (Repo). The Chinese Central Bank has stated that the total liquidity in the system will be more At 900 billion yuan ($ 130 billion) over the same period last year 2019.

We would like to point out, because some financial market analysts have commented on this matter, that although this will reflect the largest addition of liquidity in Chinese markets since 2004, it means merely injecting 150 billion yuan ($ 21.7 billion) in net liquidity today and that The People's Bank of China may pump more liquidity later this week by facilitating repo lending or medium-term lending to ease concerns in financial markets.

It is noteworthy that the World Health Organization announced last Thursday an international health emergency due to the rapid outbreak of the Corona virus, which requires more efforts to contain and combat that virus that started in Wuhan, China, which killed more than 361 people in China, in addition to the fact that there are 17,200 cases Infected with the deadly virus globally in the shadows of succession many countries have announced the emergence of infected cases.

On the other hand, investors are currently awaiting by the US economy, the largest economy in the world, to disclose the final reading of the PMI index by Markit for the United States of America, the largest industrial country in the world, which may reflect the stability of the expansion at a value of 51.7, with little change from the reading Preliminary for the month of January, and against a value of 52.4 last December.

This comes before we witness the disclosure of the Institute of Industrial Supply index reading, which may show contraction shrinkage to 48.5 compared to 47.2 in December, while the reading of the Institute of Industrial Supply measured in prices may expand to 52.0 compared to 51.7 in December, in conjunction with the release of the construction spending index, which reflects a slowdown in growth to 0.5% compared to a decline of 0.6% in November.

Technical analysis

Gold price opens trading today with a noticeable negativity to approach the pivotal support test 1575.90, as it is affected by the stochastic negativity, but it is still inside the bullish channel that appears in the picture, and gets good positive support from the EMA50, noting that the confirmed breach of the level of 1575.90 makes us likely Continue the bullish overall trend.

From here, we expect a bullish bounce to resume the bullish trend whose next target is located at 1611.20, noting that breaking 1575.90 then 1568.00 levels will stop the expected rise and press the price to return to the corrective correctional path again.

The expected trading range for today is between 1570.00 support and 1595.00 resistance.

Expected trend for today: It depends on the levels mentioned in the report.

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 January 23 against the US dollar on the cusp of developments and economic data expected today Monday by the economies of the euro area and the US economy the largest economy in the world In the wake of Britain's formal exit from the European Union.

At exactly 04:59 AM GMT, the euro against the US dollar fell 0.02% to 1.1082 levels compared to the opening levels at 1.1084, after the pair achieved its lowest level during the trading session at 1.1068, while it achieved the highest at 1.1096, knowing that The pair started the trading session on a falling price gap after it concluded the trading last week at 1.1093.

The markets are currently looking to reveal the data of the industrial sector from Spain, the fourth largest economy in the euro area, with the release of the Manufacturing Purchasing Managers Index, which may reflect a contraction of deflation to 48.3 compared to 47.4 in December, before we witness the disclosure of the same indicator reading for Italy The region's third largest economy, which may also show contraction shrinking to 46.9 from 46.2 in December.

This comes before we witness the release of the final reading of the PMI for France, the second largest euro area economy, and Germany the largest economy in the region, in addition to the eurozone economies as a whole, which may reflect the stability of the expansion at a value of 51.0 in France compared to 50.4 in December, and the stability of deflation At 45.2 in Germany versus 43.7, the contraction also stabilized at 47.8 in the region as a whole compared to 47.8 in December.

On the other hand, investors are currently looking for by the US economy, the largest economy in the world, to disclose the final reading of the PMI index by Markit for the United States of America, the largest industrial country in the world, which may reflect the stability of the expansion at a value of 51.7, with little change from the reading For the month of January, and against a value of 52.4 in December.

This comes before we witness the disclosure of the Institute of Industrial Supply index reading, which may show contraction shrinkage to 48.5 compared to 47.2 in December, while the reading of the Institute of Industrial Supply measured in prices may expand to 52.0 compared to 51.7 in December, in conjunction with the release of the construction spending index, which reflects a slowdown in growth to 0.5% compared to a decline of 0.6% in November.

Technical analysis

The euro against the dollar pair conducted a retest of the broken support for the upside channel that appears in the image and maintained its stability below it, in conjunction with the appearance of Significant saturation signals in the purchase through the stochastic, waiting for the price to be stimulated to rebound down to resume the expected downside for the coming period, which aims to test the level Initially 1.0985.

Thus, the bearish trend scenario will remain valid unless the pair presents additional positive trades to breach the 1.1090 level and settles above it, noting that the negative effect of the head and shoulders pattern is still effective.

The expected trading range for today is between 1.0985 support and 1.1140 resistance.

Expected trend for today: bearish.

The Australian dollar fluctuated in a narrow range tilted to the upside during the Asian session, to witness its bounce to the second session from the lowest since October 2, when it tested the lowest since mid-March 2009 against the US dollar, following the economic developments and data that it reported on the Australian economy and on The expected economic developments and data on Monday by the US economy, the largest economy in the world.

At exactly 02:39 AM GMT, the Australian dollar pair rose against the US dollar by 0.12% to 0.6696 levels compared to the opening levels at 0.6688, after the pair achieved its highest level during the trading session at 0.6705, while the pair achieved its lowest at 0.6682, with Knowing that the pair started the trading session on a falling price gap after it concluded the trading last week at 0.6692.

On the Australian economy, we have followed the disclosure of the AIG manufacturing index reading, which showed the contraction widened to 45.4 compared to 48.3 last December, and this came before we witnessed the Melbourne Institute (MI) disclosing an index reading An inflation gauge that showed growth stabilized at 0.3% in January, while the annual reading of the same indicator showed that growth accelerated to 1.8% versus 1.4%.

Up to the disclosure of Australian housing market data with the release of the Building Permits Index, which showed a 0.2% decline against a rise of 10.9% last November, contrary to expectations that indicated a 5.0% decline, while the annual reading of the same index showed an increase of 2.7% compared to a decline 2.8% in the previous annual reading for the month of November, also outperforming the expectations that indicated a decline to 1.4%.

This came in conjunction with the disclosure of preliminary data for the Australian labor market with the release of the job ads index, which showed a rise of 3.8% against a decline of 5.7% in December. Otherwise, the markets look to tomorrow, Tuesday, the decisions and directions of monetary policy makers at the Reserve Bank of Australia with The Central Bank of Australia's interest rate statement was issued amid expectations that it would be fixed for the third consecutive meeting.

Markets are also looking after tomorrow, Wednesday, for what will come out of the speech of the Australian Central Bank Governor, Philip Liu, who is scheduled to deliver a speech under the title "next year" at the National Press Club in Sydney, before he testifies next Thursday before the Permanent Committee for the Economy in the House of Representatives In Canberra, hours before the Reserve Bank of Australia unveiled its monetary policy statement for its meeting tomorrow, Friday.

On the other hand, investors are currently awaiting by the US economy the disclosure of the final reading of the manufacturing PMI by Markit on the United States of America the largest industrial country in the world, which may reflect the stability of the expansion at a value of 51.7 without any change from the initial reading for January, against a value of 52.4 last December.

This comes before we witness the disclosure of the Institute of Industrial Supply index reading, which may show contraction shrinkage to 48.5 compared to 47.2 in December, while the reading of the Institute of Industrial Supply measured in prices may expand to 52.0 compared to 51.7 in December, in conjunction with the release of the construction spending index, which reflects a slowdown in growth to 0.5% compared to a decline of 0.6% in November.

Technical analysis

The Australian dollar versus the US dollar continues the negative crawl to settle near our awaited target 0.6670, and it comes under negative pressure formed by the EMA50, which supports the chances of breaking the mentioned level to head towards our next negative target which is located at 0.6615.

Therefore, we will continue to favor the bearish trend for the upcoming period, noting that stability below 0.6820 is important for the continuation of the expected decline.

The expected trading range for today is between 0.6650 support and 0.6730 resistance.

Expected trend for today: bearish.

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.

The price pivot zone of 763.90 holds back sellers. Probably, the downward movement is a corrective wave (B), an upward construction. Also, Stochastic Oscillator signals oversoldness.

Trading recommendations:

Buy while an ascending pattern is forming, where the wave (as) breaks through the inclined channel of the descending pattern.

Stop loss under the price pivot zone of 763.90.

Target levels: 798.50; 833.50.

The currency pair is trading in a descending price channel (H4 timeframe). At the same time, a second bullish divergence is likely to form on Awesome Oscillator indicator. The support level of 1.0665 is holding back sellers.

Trading recommendations:

Buy while an ascending 123 pattern is forming, strictly after breaking through the upper border of the descending price channel.

Stop loss under the support level 1.0665.

Target levels: 1.0750; 1.0780; 1.0820.

The pair is trading below 108.60, remaining under pressure amid falling demand for risky assets due to the new coronavirus. If this factor remains an influence, the pair will be put under downward pressure.

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

Trading recommendations:

Sell the pair with a local target of 107.95, if it does not rise above the level of 108.60.

The Australian dollar fluctuated in a narrow range tilted towards the decline during the Asian session, to prepare for the longest march of its weekly losses since mid-2015 and to witness its stability near its lowest since early October, when it tested the lowest since mid-March 2009 against the US dollar after developments And the economic data that it published on the Australian economy and on the cusp of developments and economic data expected Friday by the US economy, the largest economy in the world.

At exactly 02:39 am GMT, the Australian dollar pair fell against the US dollar by 0.09% to 0.6716 levels compared to the opening levels at 0.6722, after the pair achieved its lowest level during the trading session at 0.6706, while the pair achieved its highest at 0.6730.

On the Australian economy, we have followed the release of the PPI reading, which is an initial indicator of inflationary pressures, which showed a slowdown in growth to 0.3%, in line with expectations, compared to 0.4% in the third quarter, as the annual reading of the same index showed a slowdown in growth to 1.4% compared to 1.6% in The previous annual reading, and that came before we witnessed a reading of the private sector credit index showed stability at 0.2%, in line with expectations during December.

On the other hand, investors are currently awaiting by the US economy to disclose spending and personal income data, which may reflect a slowdown in personal spending growth to 0.3% versus 0.4% last November, and a slowdown in personal income growth to 0.3% compared to 0.5% in August November, while a reading of the core personal consumption expenditures index may show the stability of the pace of growth in December at 0.1%.

This comes in conjunction with the disclosure of the unit labor cost index reading, which may reflect the stability of growth at 0.7%, little changed from what it was in the third quarter, and before we witness the disclosure of industrial bottom data for the largest industrial country in the world with the release of the Chicago PMI reading Which may reflect the stability of the contraction at 48.9, little changed from last December.

To reveal the final reading of the University of Michigan's index of consumer confidence, which may show the stability of the expansion at 99.1 unchanged from the initial reading of the previous month this month and against 99.3 in December, and this comes hours after the Federal Open Market Committee meeting, which approved the monetary policy makers The Federal Reserve has cut interest rates for the third consecutive meeting by 25 basis points, between 1.50% and 1.75%.

Technical analysis

The Australian dollar versus the US dollar pair shows more bearish tendency to gradually approach our awaited target at 0.6670, and it falls under continuous negative pressure coming from the EMA50, to support the chances of the continuation of the descending wave during the coming period, noting that breaking the mentioned level will push the price to 0.6615 As a next negative target.

Consequently, the expected decline will remain valid unless the 0.6820 level is breached and stability above it.

The expected trading range for today is between 0.6670 support and 0.6750 resistance.

Expected trend for today: bearish.

The single currency fluctuated the euro in a narrow range slanting toward a decline during the Asian session, to prepare for its weekly losses in a row and its longest march of weekly losses since the first half of 2018 against the US dollar on the cusp of developments and economic data expected on Friday by the economies of the euro area and the American economy is greater An economy in the world and in the midst of the aspiration for Britain to officially exit the European Union today.

At exactly 05:37 AM GMT, the euro against the US dollar fell 0.06% to 1.1025 levels compared to the opening levels at 1.1032, after the pair achieved its lowest level during the trading session at 1.1023, while achieving the highest at 1.1036.

The markets are currently looking to the French economy, the second largest in the region, to disclose the growth data for the fourth quarter with the release of the initial reading of the GDP index, which may reflect a slowdown in the pace of growth to 0.2% compared to 0.3% in the third quarter, as the annual reading of the indicator may show a slowdown The growth rate increased to 1.2% compared to 1.4% in the third quarter annual reading.

This comes before we witness by Germany, the largest economy in the euro area, the disclosure of the retail sales index, which may reflect a 0.5% decline compared to a rise of 2.1% last November, while the annual reading of the same indicator may show an acceleration of growth to 4.5% compared to 2.8 %, Before we witness from France the preliminary reading of the CPI, which may indicate a contraction of 0.5%, compared to a growth of 0.1% last December.

To reveal the growth data for the fourth largest economy in the euro area Spain with the release of the initial reading of the GDP index, which may reflect the stability of the pace of growth during the fourth quarter at 0.4%, little changed from the third quarter, in conjunction with the release of the annual reading of the consumer price index for Spain, which may It reflects the acceleration of growth to 1.0% versus 0.8% in the prior annual reading for November.

Investors are also looking to disclose the growth data of the third largest economy in the euro area Italy with the release of the initial reading of the GDP index, which may reflect the stability of the pace of growth during the fourth quarter at 0.1%, little changed from the third quarter, before we witness the economies of the region as a whole. On inflation data, with the release of the annual CPI reading, which may reflect the acceleration of growth to 1.4% against 1.3% in December, while the substantial annual reading of the same indicator may show slowing growth to 1.2% versus 1.3%.

Up to the disclosure of the growth data for the eurozone economies as a whole with the release of the initial reading of the GDP index, which may reflect the stability of the pace of growth during the fourth quarter at 0.2%, little changed from what it was in the third quarter, while the seasonally adjusted annual reading of the output indicator may show The total domestic economy of the region as a whole slowed the pace of growth to 1.1% versus 1.2% in the previous reading for the third quarter.

On the other hand, investors are currently awaiting by the US economy to disclose spending and personal income data, which may reflect a slowdown in personal spending growth to 0.3% versus 0.4% last November, and a slowdown in personal income growth to 0.3% compared to 0.5% in August November, while a reading of the core personal consumption expenditures index may show the stability of the pace of growth in December at 0.1%.

This comes in conjunction with the disclosure of the unit labor cost index reading, which may reflect the stability of growth at 0.7%, little changed from what it was in the third quarter, and before we witness the disclosure of industrial bottom data for the largest industrial country in the world with the release of the Chicago PMI reading Which may reflect the stability of the contraction at 48.9, little changed from last December.

To reveal the final reading of the University of Michigan's index of consumer confidence, which may show the stability of the expansion at 99.1 unchanged from the initial reading of the previous month this month and against 99.3 in December, and this comes hours after the Federal Open Market Committee meeting, which approved the monetary policy makers The Federal Reserve has cut interest rates for the third consecutive meeting by 25 basis points, between 1.50% and 1.75%.

Technical analysis

The pair of the euro against the dollar presented slight positive trades yesterday to test the moving average 50, and begins the day with a bearish tendency in a sign of the price trend to resume the expected downside direction for the coming period, noting that the stochastic indicator provides a negative crossover indication that we are waiting to stimulate the price to achieve more decline.

Consequently, our bearish outlook will remain valid for today, with a reminder that our targets start at 1.0985 and extend to 1.0880, while achieving it requires stability below 1.1085.

The expected trading range for today is between 1.0940 support and 1.1085 resistance.

Expected trend for today: bearish.