Analytic reviews

The US dollar fluctuated in a narrow range slanting back down during the Asian session, to witness its bounce to the seventh session in nine sessions from the top since May 23 against the Japanese yen, following the developments and economic data that it had reported on the Japanese economy and on the cusp of developments and economic data expected today Wednesday by The American economy, which includes the decisions and trends of monetary policy makers at the Federal Reserve and the Federal Reserve Governor Jerome Powell's press conference in Washington.

At exactly 05:58 am GMT, the US dollar pair fell against the Japanese yen by 0.01% to 109.14 levels compared to the opening levels at 109.15, after achieving the lowest level during the trading session at 109.08, while achieving the highest at 109.27.

We have followed about the Japanese economy, the second largest economy in Asia and the third largest economy in the world after each of the United States and China, the Bank of Japan revealed a summary of opinions report, before we witness the release of the consumer confidence index, which showed stability at a value of 39.1 without any significant change from What it was in the previous reading last December, contrary to expectations that it rose to 39.6.

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 dollar versus yen pair shows some bullish tendency to approach the test of 109.33 level, in conjunction with the stochastic loss of positive momentum and its entering overbought areas, noting that SMA 50 meets with the mentioned resistance to add more strength to it.

Consequently, we believe that opportunities exist to rebound downward and resume the expected bearish direction over the intraday basis, whose next target is at 108.40, while stability below 109.33 is important for the continuation of the suggested decline.

The expected trading range for today is between 108.40 support and 109.70 resistance.

Expected trend for today: bearish.

Gold price futures fluctuated in a narrow range that tilted back down during the Asian session to witness its bounce for the third consecutive session from its highest since January 8, when it tested its highest since March 18, 2013 amid the rise of the US dollar index according to the inverse relationship Between them are on the threshold of the expected economic developments and data on Wednesday by the US economy, which includes the decisions and trends of monetary policy makers at the Federal Reserve and the press conference of the Federal Reserve Governor Jerome Powell in Washington.

At exactly 04:20 AM GMT, gold price futures for February delivery fell 0.11% to trade at $ 1,570.20 per ounce compared to the opening at $ 1,572.00 per ounce, knowing that the contracts started the session’s trading on a falling price gap after it concluded yesterday's trading At $ 1,575.80 an ounce, with the US dollar index rising 0.09% to 98.03 compared to the opening at 97.95.

Investors are currently awaiting the release of the December data by the US economy 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 inventories index, which may reflect a 0.1% rise against 0.1% decline, to reveal 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 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 reduce reference interest rates Short-term, his country will focus on paying its debts and refinancing again.

Otherwise, we followed yesterday, Chinese President Xi Jinping, after meeting with WHO Director Tidros Adhanum to discuss how to contain the Corona virus and prevent it from becoming a global epidemic, expressed his country’s ability to combat the spread of the virus, and that China trusts and is able to win this The battle, amid his statement that the most important measure is how to prevent and combat it, which will cause the organization and the international community to provide a calm and objective evaluation of the virus.

In the same context, the Director-General of the World Health Organization, Adhanom, in turn, expressed yesterday the organization's confidence in the ability of China to contain the spread of the Corona virus and that the organization encourages everyone to remain calm in the current circumstances and that there is no need for exaggerated reactions or the evacuation of foreign citizens from China, with It informed him that the Chinese government had approved measures to curb the spread of the virus, and thanked the Chinese government for its efforts to prevent its spread.

Technical analysis

The price of gold ended yesterday's trading below 1575.90, which puts the price under expected negative pressure over the intraday basis, on its way to mainly test 1554.10 level, noting that we will be waiting for an upside bounce to resume the main bullish trend after testing the mentioned level.

From here, a bearish bias will be likely for today, noting that breaching the target level will extend the descending wave to reach 1536.50 next station, while a break of 1575.90 represents the key to stop the current negative pressure and the price rush to restore the upside again.

The expected trading range for today is between 1554.00 support and 1575.00 resistance.

Expected trend for today: bearish temporarily.

The single currency fluctuated the euro in a narrow range slanting back down during the Asian session to witness its rebound to the eleventh session in twenty-one sessions from its highest since the seventh of August against the US dollar on the cusp of developments and economic data expected today Wednesday by the economies of the euro area and the American economy, which Includes Fed policy makers' decisions and directions and Fed Governor Jerome Powell's press conference in Washington.

At 05:23 am GMT, the euro against the US dollar fell 0.09% to 1.1012 levels compared to the opening levels at 1.1022, after the pair achieved its lowest level during the trading session at 1.1011, while it achieved the highest at 1.1028.

Investors, by the largest Eurozone economies, are looking to Germany to unveil a statistical reading of the GFK index of consumer confidence, which may reflect the stability of the expansion at a value of 9.6 during February, in conjunction with the release of the import price index for Germany, which may reflect a slowdown in growth to 0.2% against 0.5% last November, while the annual reading of the same indicator may show the decline decreased to 0.7% compared to 2.1%.

This comes before we witness the disclosure of the annual reading of the special loans index for the eurozone economies as a whole, which may clarify the stability of growth at 3.5%, little changed from the previous annual reading for the month of November, in conjunction with the release of the annual reading of the M3 money supply also for the economies of the region. The euro as a whole which may explain the slowdown in growth to 5.5% compared to 5.6% in November.

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 EURUSD pair continues with a quiet decline to continue to approach our first target 1.0985, and the negative effect of the head and shoulders pattern whose features appear in the image remains effective, awaiting further decline during the upcoming sessions, with a reminder that our next target extends to 1.0880, while stability is below 1.1080 An important condition for the continuation of the expected decline.

The expected trading range for today is between 1.0940 support and 1.1080 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 Australian dollar fluctuated in a narrow range slanting toward a decline during the Asian session, to witness the lowest since October 16 against the US dollar, following developments and economic data that were reported by the Australian economy and on the cusp of developments and economic data expected on Tuesday by the American economy, which includes a recorded conversation For the Member of the Federal Open Market Committee and President of the New York Federal Reserve Bank John Williams.

At exactly 02:34 AM GMT, the Australian dollar versus the US dollar fell 0.16% to 0.6750 levels compared to the opening levels at 0.6761, after the pair achieved its lowest level in more than three months at 0.6747, while achieving the highest during the trading session at 0.6762.

On the Australian economy, we have followed the Australian National Bank’s business confidence index for the month of December, which showed a contraction of 2 against stability at zero levels in the previous reading last November, while the same indicator of confidence in the current conditions showed a contraction Widen to 3 vs. 4 in November.

On the level, investors are currently watching by the US economy to disclose the reading of the durable goods orders index, which represents about half of consumer spending, which represents more than two-thirds of the gross domestic product in the United States, which may reflect a rise of 1.2% compared to a decline of 2.1% in November , And the core reading of the same index may also show a 0.4% increase compared to a 0.1% decline in November.

This comes before we witness the disclosure of the US housing market data with the release of the seasonally adjusted reading of the S&P composite of house prices 20 which may reflect slowing growth to 0.3% compared to 0.43% in the previous monthly reading last October, while the reading may appear Annual growth in the same index accelerated to 2.5%, compared to 2.2% in October.

Up to the Federal Reserve Board member and President of the New York Federal Reserve John Williams made the opening remarks on the Puerto Rico Beach program in San Juan, via a pre-recorded video, before revealing the reading of the consumer confidence index, which may appear widening to 128.2 compared to 126.5 in December, and the Richmond Industrial Index reading, which may reflect a contraction of 3 to 5 in December.

This comes in conjunction with the start of the FOMC meeting today and tomorrow, Wednesday, in Washington, in 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. Federal Reserve Governor Jerome Powell tomorrow, Wednesday, half an hour after the FOMC meeting ends.

Markets are also looking after tomorrow, Thursday, to disclose the preliminary reading of the gross domestic product of the United States for the fourth quarter, which may show the acceleration of the pace of growth for the largest economy in the world to 2.2% compared to 2.1% in the third quarter, while the initial reading may reflect the GDP measured in prices from Last quarter, the pace of growth stabilized at 1.8%, little changed from what it was in the third quarter.

Technical analysis

The Australian dollar versus the US dollar is showing a further bearish tendency to continue the expected decline in the intraday and short term, on its way to visit the previously recorded bottom at 0.6670 as the next main station.

SMA 50 supports the expected decline, which will remain valid unless the price rushes to breach the 0.6875 level and stability above it.

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

Expected trend for today: bearish.

The euro currency fluctuated in a narrow range tilted to the upside during the Asian session to witness its rebound to the second session from the lowest since December 2 against the US dollar on the cusp of developments and economic data expected today by the third largest economies of the euro area Spain and the American economy, which includes Recorded interview for FOMC member and New York Fed Chairman John Williams.

At exactly 05:34 AM GMT, the euro pair rose against the US dollar by 0.03% to 1.1022 levels compared to the opening levels at 1.1019, after the pair achieved its highest level during the trading session at 1.1025, while achieving the lowest at 1.1017.

The markets are looking to the Spanish economy to reveal the unemployment rate index, which may show an increase to 14.0% compared to 13.9% in the third quarter. Otherwise, we followed yesterday, the European Union's chief negotiator, Michel Barnier, expressed his view that the risks of Britain’s exit file from The European Union, and in particular the future relations between the United Kingdom and the European Union countries, after Britain leaves the Union next Friday.

In the same context, the European Union's chief negotiator, Barnier, stated that the risks of the European Union not reaching a trade agreement with Britain before the end of this year 2020 are that negotiations on Britain's departure to the European single market and the European Customs Union are optional by the two parties, as we also followed yesterday, the Prime Minister also expressed The Irishman, Leo Faradkar, says he also finds it difficult to reach a commercial agreement between the United Kingdom by the end of this year.

On the level, investors are currently watching by the US economy to disclose the reading of the durable goods orders index, which represents about half of consumer spending, which represents more than two-thirds of the gross domestic product in the United States, which may reflect a rise of 1.2% compared to a decline of 2.1% in November In the past, the core reading of the same index may also show a 0.4% increase compared to a 0.1% decline in November.

This comes before we witness the disclosure of the US housing market data with the release of the seasonally adjusted reading of the S&P composite of house prices 20 which may reflect slowing growth to 0.3% compared to 0.43% in the previous monthly reading last October, while the reading may appear Annual growth in the same index accelerated to 2.5%, compared to 2.2% in October.

Up to the Federal Reserve Board member and President of the New York Federal Reserve John Williams made the opening remarks on the Puerto Rico Beach program in San Juan, via a pre-recorded video, before revealing the reading of the consumer confidence index, which may appear widening to 128.2 compared to 126.5 in December, and the Richmond Industrial Index reading, which may reflect a contraction of 3 to 5 in December.

This comes in conjunction with the start of the FOMC meeting today and tomorrow, Wednesday, in Washington, in 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. Federal Reserve Governor Jerome Powell tomorrow, Wednesday, half an hour after the FOMC meeting ends.

Markets are also looking after tomorrow, Thursday, to disclose the initial reading of the GDP of the United States for the fourth quarter, which may show the acceleration of the pace of growth for the largest economy in the world to 2.2% compared to 2.1% in the third quarter, while the initial reading may reflect the GDP measured by prices for the quarter Last quarter, the pace of growth stabilized at 1.8%, little changed from what it was in the third quarter.

Technical analysis

The EURUSD pair did not show any strong movement in the previous sessions, to continue to fluctuate near the 1.1000 barrier, and therefore, there is no change to the bearish trend scenario that depends on stability below 1.1080 level, with a reminder that our targets start at 1.0985 and extend to 1.0880 after crossing the previous level.

On the other hand, we point out that the price has completed forming a head and shoulders pattern in advance, which supports the chances of the continuation of the expected bearish wave for the upcoming period.

The expected trading range for today is between 1.0940 support and 1.1080 resistance.

Expected trend for today: bearish.

Gold price futures fluctuated in a narrow range that tilted back down during the Asian session to witness its bounce for the second consecutive session from its highest since January 8, when it tested its highest since March 18, 2013, condoning the decline in the US dollar index according to the relationship The opposite between them is on the cusp of developments and economic data expected today by the American economy, which includes a recorded talk for a member of the Federal Committee and President of the New York Federal Reserve John Williams and in the shadow of concerns about the rapid spread of the Corona virus.

At exactly 04:17 AM GMT, gold price futures for February delivery fell 0.11% to trade at 1,585.30 per ounce compared to the opening at $ 1,587.10 per ounce, knowing that the contracts started the trading session on an upward price gap after yesterday's trades ended at $ 1,583.70 an ounce, with the US dollar index down 0.01% to 97.94 compared to the opening at 97.95.

Investors are currently awaiting by the US economy to disclose the reading of the durable goods orders index, which represents about half of consumer spending, which represents more than two-thirds of the gross domestic product in the United States, which may reflect a rise of 1.2% compared to a decline of 2.1% in November, as well A substantial reading of the same indicator may show a 0.4% increase compared to a 0.1% decline in November.

This comes before we witness the disclosure of the US housing market data with the release of the seasonally adjusted reading of the S&P composite of house prices 20 which may reflect slowing growth to 0.3% compared to 0.43% in the previous monthly reading last October, while the reading may appear Annual growth in the same index accelerated to 2.5%, compared to 2.2% in October.

Up to the Federal Reserve Board member and President of the New York Federal Reserve John Williams made the opening remarks on the Puerto Rico Beach program in San Juan, via a pre-recorded video, before revealing the reading of the consumer confidence index, which may appear widening to 128.2 compared to 126.5 in December December, and the Richmond Industrial Index reading, which may reflect a contraction of 3 to 5 in December.

This comes in conjunction with the launching of the FOMC meeting today and tomorrow Wednesday in Washington, which is expected to maintain the short-term benchmark interest rates for the third consecutive meeting at between 1.50% and 1.75%, and amid looking forward to the press conference activities that will be held. Federal Reserve Governor Jerome Powell tomorrow, Wednesday, half an hour after the FOMC meeting ends.

Markets are also looking after tomorrow, Thursday, to disclose the preliminary reading of the gross domestic product of the United States for the fourth quarter, which may show the acceleration of the pace of growth for the largest economy in the world to 2.2% compared to 2.1% in the third quarter, while the initial reading may reflect the GDP measured in prices from Last quarter quarter, the pace of growth stabilized at 1.8%, little changed from what it was in the third quarter.

Otherwise, we followed the report that touched on the fact that the ability of the coronavirus to spread is getting stronger and that the infection may continue to rise and that there are about three thousand cases of the disease and about one hundred deaths from the deadly virus so far in China, and this came hours after the President's order Chinese Shi Jinping last Saturday with a faster response, and teams have been dispatched to the severely affected areas to enhance prevention and containment.

We would like to point out, because China recently announced that it will extend the duration of the Lunar New Year holidays that started last Saturday to ten days from a week, specifically until February 2, and that schools and universities will return to resume their educational activities from the holidays later than usual, while they announced a city China-ruled Hong Kong will ban entry to people who visited Hubei Province in the past two weeks.

It is reported that the World Health Organization last week considered the Coronavirus, which started in Wuhan, China, as an "emergency in China", after initially expressing that "it is too early to consider this event as a public health emergency of international concern", so that it remains of Before the organization is limited to China and not at the world level, knowing that Canada confirmed its first case, and America announced yesterday the fifth case, and the spread of the virus in more than 15 countries.

Technical analysis

Gold price maintains its stability above 1575.90 level, which keeps the bullish scenario current and effective for the upcoming period, supported by the moving average 50 that carries the price from below, waiting for visiting the 1611.20 level which represents our next main target.

It should be noted that breaking the 1575.90 level may press the price to drop towards 1554.10 areas again before any new attempt to rise.

The expected trading range for today is between 1570.00 support and 1600.00 resistance.

Expected trend for today: bullish.

Google's stock continues the bullish path. As the stock was able to settle above the upper bound of the ascending channel that was trading within it, thus the bullish path of the stock will continue.

The movement continues above the 7-20-50 MAs that move in an ascending order below the price.

The stochastic oscillator has left the overbought zone on a bearish path, and this has been reflected in the price movement with a downward correction towards the support.

Expected trend for today: bullish.

The US dollar fluctuated in a narrow range tilted to the upside during the Asian session, to witness its bounce for the second session from the lowest since January 8 against the Japanese yen, following the developments and economic data that it had reported on the Japanese economy and on the cusp of developments and economic data expected today Tuesday by the US economy These include a recorded speech by the Federal Open Market Committee member and President of the New York Federal Reserve Bank John Williams and the launch of the FOMC meeting in Washington.

At exactly 06:08 AM GMT, the US dollar pair rose against the Japanese yen by 0.13% to 109.04 levels compared to the opening levels at 108.90, after achieving its highest level during the trading session at 109.05, while achieving the lowest at 108.82.

On the Japanese economy, we followed the disclosure of inflation data with the release of the annual services price index, which showed stable growth at 2.1%, unchanged from the previous reading in November, in line with expectations, and this came before we witnessed the Bank of Japan’s disclosure of The core annual CPI reading, which showed acceleration in growth to 0.3% compared to the previous reading in November and expectations at 0.2%.

On the level, investors are currently watching by the US economy to disclose the reading of the durable goods orders index, which represents about half of consumer spending, which represents more than two-thirds of the gross domestic product in the United States, which may reflect a rise of 1.2% compared to a decline of 2.1% in November In the past, the core reading of the same index may also show a 0.4% increase compared to a 0.1% decline in November.

This comes before we witness the disclosure of the US housing market data with the release of the seasonally adjusted reading of the S&P composite of house prices 20 which may reflect slowing growth to 0.3% compared to 0.43% in the previous monthly reading last October, while the reading may appear Annual growth in the same index accelerated to 2.5%, compared to 2.2% in October.

Up to the Federal Reserve Board member and President of the New York Federal Reserve John Williams made the opening remarks on the Puerto Rico Beach program in San Juan, via a pre-recorded video, before revealing the reading of the consumer confidence index, which may appear widening to 128.2 compared to 126.5 in December, and the Richmond Industrial Index reading, which may reflect a contraction of 3 to 5 in December.

This comes in conjunction with the start of the FOMC meeting today and tomorrow, Wednesday, in Washington, in 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. Federal Reserve Governor Jerome Powell tomorrow, Wednesday, half an hour after the FOMC meeting ends.

Markets are also looking after tomorrow, Thursday, to disclose the preliminary reading of the gross domestic product of the United States for the fourth quarter, which may show the acceleration of the pace of growth for the largest economy in the world to 2.2% compared to 2.1% in the third quarter, while the initial reading may reflect the GDP measured in prices from Last quarter, the pace of growth stabilized at 1.8%, little changed from what it was in the third quarter.

Technical analysis

The dollar versus the yen maintains its stability below 109.33, to keep the negative pressure in place for the upcoming period, which mainly targets testing the 108.40 level.

We recall that opportunities are available to rebound upwards after testing the mentioned level to resume the main bullish trend, noting that a break of 109.33 will stop the expected decline and lead the price to restore the bullish path again, while a break of 108.40 is a negative factor that will force the price to achieve further decline in the short and intraday basis.

The expected trading range for today is between 108.40 support and 109.70 resistance.

Expected trend for today: bearish.

The currency pair is trading in the range of the round important level 0.9700. The daily timeframe shows that the pair has been in the range of historical lows since mid-2018. Also, on the daily timeframe, the right shoulder of the inverted head and shoulders figure is probably forming now. A visual analysis of the daily timeframe makes it possible to assume that an upward movement is likely to begin. Since the purchase swap is positive, in case of a successful development of events, we will earn not only on the price difference, but also on the swap.

Trading recommendations:

Buy above the round secondary level of 0.9720.

Stop loss under the round secondary level is 0.9680.

Target levels: 0.9750 (close the current order and move to breakeven); 0.9750; 0.9818.