Analytic reviews

The dollar versus the yen resumed its negative trading after approaching the level of 109.33 in the previous sessions, and it is under constant negative pressure coming from the EMA50, to keep the bearish trend valid and active in the intraday basis, noting that our awaited target is at 108.40.

We point out that breaching the target level will extend the descending wave to reach 107.45, while the expected decline will remain valid unless the 109.33 level is breached and a daily closing remains above it.

The expected trading range for today is between 108.20 support and 109.50 resistance.

Expected trend for today: bearish.

The descending pattern is currently truncated (wave C did not break through 123.6% of wave A). Also, Awesome Oscillator shows a bullish divergence, while the Stochastic Oscillator indicates oversoldness.

 Trading recommendation:

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

Stop loss under the local minimum.

Target levels: 30.75; 32.00.

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 pair is consolidating at the lower border of the emerging triangle which is clearly visible on the daily chart. The pair may drop only if the Bank of England either decides to lower the interest rate, or makes it clear that this may happen in the near future. Also, the speech of the head of the UK central bank Mark Carney may affect the pair’s dynamics in the same way.

The price is below the middle Bollinger band, below SMA 5 and SMA 14. RSI is below the 50% level and is gradually decreasing. Stoch indicates the probability of a downward price reversal.

Trading recommendations:

Sell the pair only if it drops below 1.2985 with a likely decrease to 1.2900.

The 1.3210 support level is holding back buyers. An ascending truncated pattern was formed. A bearish divergence has formed on Awesome Oscillator indicator, and Stochastic Oscillator signals overboughtness.

Trading recommendations:

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

Stop loss for the local maximum: 1.3210.

Target levels: 1.3154; 1.3124.

The price of gold found support at 1562.75 after falling on Tuesday due a more stable market. Despite the rebound, expect the price to resume a local growth, since the topic of coronavirus has not disappeared yet and continues to dominate the market mood.

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

Trading recommendations:

It possible to resume buying gold if it stays above the level of 1562.75 with a likely price increase to 1585.10.

Aeroflot shares opened the week with a falling gap and continued to fall for two consecutive sessions

The falling sanctuary stopped at the support 107.36, where the moving average 20 is located.

The price action above the 20-50 moving averages which still constitute strong price support levels

The stochastic oscillator has left the overbought zone on a downward path, thus adding pressure to the price to continue falling.

The general trend of the movement: upward path.

The Australian dollar fluctuated in a narrow range tilted to the upside during the Asian session, to witness its bounce for the second consecutive session from the lowest since October 16 against the US dollar, following the developments and economic data that it had reported on the Australian economy and on the cusp of developments and economic data expected today Wednesday by The American economy, which includes the decisions and directions of monetary policy makers at the Federal Reserve and the Federal Reserve Governor Jerome Powell's press conference in Washington.

At 2:39 am GMT, the Australian dollar pair rose against the US dollar 0.03% to 0.6764 levels compared to the opening levels at 0.6762, after the pair achieved its highest level during the trading session at 0.6773, while achieving the lowest at 0.6755.

This has been followed by the Australian economy. The leading indicators reading was released by the Melbourne Institute, which showed an increase of 0.1% against stability at zero levels last November. This came before the disclosure of the fourth quarter inflation data with the release of the consumer price index, which showed accelerated growth To 0.7%, compared to 0.5% in the previous reading for the third quarter, outperforming expectations for a 0.6% acceleration in growth.

In the same context, the core reading of the consumer price index showed that the pace of growth was stable at 0.4%, in line with expectations during the fourth quarter, while the annual reading of the consumer price index showed that growth accelerated to 1.8% compared to the previous annual reading and expectations at 1.7%, and the fundamental annual reading of the index reflected The same growth was stable at 1.6% during the fourth quarter, contrary to expectations that growth slowed to 1.5%.

On the other hand, investors are anticipating by the US economy to disclose data for the month of December with the release of the merchandise trade balance reading, which may explain the widening deficit to $ 64.5 billion compared to $ 63.2 billion in conjunction with the release of the initial reading of the wholesale inventory index, which may reflect a rise of 0.1 % Versus a decline of 0.1%, all the way to revealing housing market data with the release of existing home sales, which may show a slowdown in growth to 0.5% versus 1.2%.

This comes in conjunction with the FOMC meeting, on January 28-29, during which it is expected that the short-term benchmark interest rates for the third consecutive meeting will be maintained between 1.50% and 1.75%, and look forward to the press conference’s activities. To be held by Powell Fed Governor half an hour after the FOMC meeting’s activities expire.

We would like to point out that US President Donald Trump just renewed his demand for the Federal Reserve to resume reducing interest on federal funds during its current meeting, in order to maintain interest rates in America compared to other countries, with his statement that if the Federal Reserve decides to cut rates The short-term reference interest is that his country will focus on paying its debts and refinancing it again.

Technical analysis

The Australian dollar versus the US dollar shows some slight bullish bias affected by the stochastic positivity, but since the price is below the broken support for the bullish channel which turns into resistance now at 0.6815, the bearish trend scenario will remain likely for the coming period, noting that we are waiting for the 0.6670 level to be visited as a target Next major.

The expected trading range for today is between 0.6700 support and 0.6800 resistance.

Expected trend for today: bearish.

The currency pair is trading in the support level range of 141.15. Stochastic Oscillator indicator signals oversoldness. Breaking through the price pivot zone of 142.35 will result in the formation of an ascending pattern 123.

Trading recommendations:

Buy above 142.35.

Stop loss – 141.15.

Target levels: 143.20; 144.40.

The support level of 254.00 held back sellers. Awesome Oscillator indicator shows a bullish divergence, and Stochastic Oscillator signals oversoldness. Breaking through the resistance level of 258.50 will result in the formation of an upward pattern 123.

Trading recommendations:

Buy above 258.50.

Stop loss – 254.00.

Target levels: 261.78; 270.70.