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The resistance level of 0.6930 held back buyers. Probably, a multi-candlestick head-and-shoulders reversal pattern is being formed.

The pair is trading in the range of the round important level 0.6900 on the H1 timeframe. The ascending truncated pattern of the H2 level ended with the breakout of the inclined channel. A bearish divergence has formed on Awesome Oscillator indicator. Breaking through the round secondary level 0.6880 will result in the formation of a descending pattern within the wave (C) of the H12 level.

Trading recommendations:

Sell below the round secondary level of 0.6880.

Stop loss for the price pivot zone 0.6930.

Target levels –  0.6850 (close the market and move to breakeven); 0.6782 (138.2% fib from A H12).

The resistance level of 7.80 held back buyers. Stochastic Oscillator indicator signals overboughtness. If the price fixes below the support level of 7.50, it may continue further down.

Trading recommendations:

Sell below support level 7.50.

Stop loss for the resistance level of 7.80.

Target levels - 7.29; 7.00; 6.50.

The pair is trading in a short-term uptrend above the level of 110.10 due to the strong US economy data published on Thursday. The pair still has the potential for further growth if it stays above 109.80.

The price is above the middle Bollinger band, above SMA 5 and SMA 14. RSI is located in the overbought zone and is growing. Stoch left the overbought zone and are declining.

Trading recommendations:

TThe pair may correct down to 109.80. Its highly likely to go further up to 111.00 from this level (109.80) if it holds above 110.10.

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.

Cisco's stock continues to move above the 46.89 support, which is the 61.8% Fibonacci retracement, having tested it several times and was unable to breach it.

Moving averages 20-50 form support levels near the previous level and shift prevented it from falling and breaching support.

Stochastic rises to the overbought zone, thus pushing the price up and testing resistance 49.05

The general direction of movement: a side path.

The Australian dollar versus the US dollar pair starts providing quiet positive trades in an attempt to move away from the EMA50, which supports the continuation of our expectations for the bullish trend for the coming period, awaiting the visit of the 0.7015 level which represents our next main station, while noting the importance of holding above 0.6875 to continue the suggested rise.

The expected trading range for today is between 0.6880 support and 0.6970 resistance.

Expected trend for today: bullish.

The single currency fluctuated the euro in a narrow range tilted to the upside during the Asian session to witness its bounce back for the third session in four sessions from the lowest since December 26 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 the largest economy In the world which includes the talk of members of the Federal Open Market Committee.

At 05:16 am GMT, the euro pair rose against the US dollar by 0.04% to 1.1132 levels compared to the opening levels at 1.1128, after the pair achieved its highest level during the trading session at 1.1134, while achieving the lowest at 1.1126.

Markets are awaiting for the second largest economy in the euro area, France. The final reading of the consumer price index, which may reflect the stability of growth at 0.4%, was little changed from the previous initial reading for the month of December and compared to 0.1% growth in November, before revealing The seasonally adjusted reading of the euro zone industrial production index as a whole may reflect a 0.3% increase versus a 0.1% decline in October.

In the same context, the annual reading of the industrial production index for the euro area as a whole may reflect a decrease in decline to 1.0% compared to 2.2% in the previous annual reading for the month of October, in conjunction with the seasonally adjusted reading of the trade balance index for the economies of the euro area as a whole, which may reflect The surplus narrowed to 22.3 billion euros from 24.5 billion euros in October.

On the other hand, investors are watching by the US economy to reveal the reading of the producer price index, which is an initial indicator of inflation, which may reflect 0.2% growth against stability at zero levels in November, while the fundamental reading of the same indicator may show 0.2% growth versus deflation 0.2%, in conjunction with the disclosure of industrial sector data, with the release of the New York Industrial Index reading, which may reflect a widening of 3.7 to 3.5 in December.

This comes before we witness the unveiling of the Beige Book report, the importance of which is that it is issued two weeks before the FOMC meeting, which is one of the pillars upon which the Federal Reserve monetary policy makers build their decisions and orientations to support and stimulate the American economy, knowing that the meeting The next FOMC will be held in Washington on January 28/29.

Technical analysis

The EURUSD pair made an attempt to return to the bullish channel but continues to fluctuate around the broken support that turns into resistance, which is now rising to 1.1150, and therefore, our bearish trend expectations will remain valid for the coming period, mainly awaiting the visit of 1.1065 level.

It should be noted that breaching 1.1150 then 1.1180 levels will stop the expected decline and lead the price to restore the main bullish direction again.

The expected trading range for today is between 1.1060 support and 1.1200 resistance.

Expected trend for today: bearish.

Gold price futures fluctuated in a narrow range tilted toward decline during the Asian session to witness its bounce back for the fifth session in six sessions from the top since March 22, 2013 amid the US dollar index rebounding to the eighth session in thirteen sessions from the lowest since the beginning of July According to the inverse relationship between them on the threshold of the expected economic developments and data today by the US economy and following the signing of US President Donald Trump and Chinese Vice Premier Liu He on the first stage of the trade deal in the White House.

At exactly 03:59 AM GMT, gold price futures for February delivery fell 0.01% to trade at $ 1,556.40 per ounce compared to the opening at $ 1,556.60 per ounce, knowing that the contracts started the trading session on an upward price gap after it concluded yesterday's trading At $ 1,554.00 an ounce, with the US dollar index rising 0.01% to 97.20 compared to the opening at 97.19.

Investors are currently awaiting by the US economy the disclosure of 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, which may reflect accelerated growth to 0.3% compared to 0.2% last November, as may appear Core reading of the same index, growth accelerated to 0.5%, compared to 0.1% in November.

This comes in conjunction with the disclosure of the Philadelphia Industrial Index reading by the largest economy in the world and the largest industrialized country globally, which may reflect a widening of what amounted to 3.7 compared to 0.3 last December, and with the release of the import price index, which may explain the acceleration of growth to 0.3 % Compared to 0.3% in November, while the annual reading of the same index may show a 0.5% increase compared to a decline of 1.3% in the previous annual reading for the month of November.

This also comes in conjunction with the issuance of the aid claims index for the week that elapses on January 11th of this year, which may reflect an increase of 3 thousand requests to 220 thousand requests compared to 214 thousand requests in the previous weekly reading, in conjunction with the disclosure of the inventory reading Businesses, which may reflect a 0.1% decline compared to a 0.1% growth last October.

Up to the disclosure of the US housing market data with the release of the housing index reading by the National Association of Home Builders, which may reflect a decline to $ 74 compared to 76 in December, in conjunction with the speech of a member of the Federal Open Market Committee and Deputy Governor of the Federal Reserve Michael Bowman on the housing projections at the Kansas City Home Building Association at Breakfast Economic Outlook.

Other than that, both President Trump and the Chinese Vice-Premier hailed the cooperation between the two countries and the flexibility in the negotiations that contributed to ending the virtue of the trade dispute between them which lasted for about a year and a half, and the American President expressed the fact that Beijing is helping Washington in resolving a number of issues It is reported that the two parties will complete negotiations regarding the second stage of the trade agreement, which may be reached after the upcoming major US elections.

In the same context, US Treasury Secretary Stephen Mnuchen yesterday expressed that the second stage of the trade agreement will witness the abolition of more tariffs, while stating that the first stage of the trade agreement has a comprehensive and enforceable mechanism and that China has agreed to develop laws to fulfill its obligations, adding that Some outstanding issues, including technology and cybersecurity, will be worked on in the second phase of the trade agreement.

Mnuchin also noted that the Huawei crisis is not an obstacle with regard to relations between the United States and China, and this came hours after the report that touched on the fact that the American administration is drafting rules to prevent more Huawei Chinese sales, which highlighted the continuing tensions between Washington and Beijing in particular. That the US tariffs on Chinese goods at about $ 360 billion still remain after the main elections that until the completion of the second phase of the agreement.

Technical analysis

The gold price continues around 1556.70, noting that the stochastic is providing negative signals that support the chances of resuming the downside corrective trend, which targets 1519.00 mainly.

Therefore, we will maintain our expectations for the downside direction for the upcoming period, noting that a breakout of 1556.70 and holding above it will stop the suggested decline and lead the price to resume the main bullish trend whose first target is located at 1611.00.

The expected trading range for today is between 1530.00 support and 1565.00 resistance.

Expected trend for today: bearish.

The US dollar fluctuated in a narrow range tilted to the upside during the Asian session, to witness its rebound to the fifth session in seven sessions from the lowest since October 10 against the Japanese yen after the developments and economic data that it had reported on the Japanese economy and on the eve of developments and economic data expected today By the US economy and following the signing of US President Donald Trump and Chinese Vice Premier Liu He on the first stage of the trade deal in the White House.

At exactly 05:52 am GMT, the US dollar pair rose against the Japanese yen by 0.04% to 109.94 levels compared to the opening levels at 109.90, after achieving its highest level during the trading session at 109.99, while achieving the lowest at 109.86.

On the Japanese economy, we followed the disclosure of inflation data with the release of the producer price index, which is an initial indicator of inflationary pressures, which showed a slowdown in the pace of growth to 0.1%, in line with expectations, compared to 0.2% last November, while the annual reading of the same indicator showed an acceleration The pace of growth to 0.9% is in line with expectations, compared to 0.1% in the previous annual reading for November.

This came in conjunction with the disclosure also by the third largest economy in the world and the third largest industrialized country after both the United States and China, from a reading of the machinery orders index, which showed an increase of 18.0% compared to a decline of 6.0% last October, outperforming expectations that indicated a rise 2.9%, as the annual reading of the same index showed an increase of 18.0% against a decline of 6.1% in October, contrary to expectations that the decline decreased to 5.4%.

On the other hand, investors are currently watching the US economy by revealing the retail sales reading that represents about half of consumer spending, which represents more than two-thirds of the gross domestic product of the United States, which may reflect the acceleration of growth to 0.3% compared to 0.2% in November. A substantial reading of the same indicator may show that growth accelerated to 0.5% versus 0.1% in November.

This comes in conjunction with the disclosure of the Philadelphia Industrial Index reading by the largest economy in the world and the largest industrialized country globally, which may reflect a widening of what amounted to 3.7 compared to 0.3 last December, and with the release of the import price index, which may explain the acceleration of growth to 0.3 % Compared to 0.3% in November, while the annual reading of the same index may show a 0.5% increase compared to a decline of 1.3% in the previous annual reading for the month of November.

This also comes in conjunction with the issuance of the aid claims index for the week that elapses on January 11th of this year, which may reflect an increase of 3 thousand requests to 220 thousand requests compared to 214 thousand requests in the previous weekly reading, in conjunction with the disclosure of the inventory reading Businesses, which may reflect a 0.1% decline compared to a 0.1% growth in October.

Up to the disclosure of the US housing market data with the release of the housing index reading by the National Association of Home Builders, which may reflect a decline to $ 74 compared to 76 in December, in conjunction with the speech of a member of the Federal Open Market Committee and Deputy Governor of the Federal Reserve Michael Bowman on the housing projections at the Kansas City Home Building Association at Breakfast Economic Outlook.

Other than that, both President Trump and the Chinese Vice-Premier hailed the cooperation between the two countries and the flexibility in the negotiations that contributed to ending the virtue of the trade dispute between them which lasted for about a year and a half, and the American President expressed the fact that Beijing is helping Washington in resolving a number of issues It is reported that the two parties will complete negotiations regarding the second stage of the trade agreement, which may be reached after the upcoming major US elections.

In the same context, US Treasury Secretary Stephen Mnuchen yesterday expressed that the second stage of the trade agreement will witness the abolition of more tariffs, while stating that the first stage of the trade agreement has a comprehensive and enforceable mechanism and that China has agreed to develop laws to fulfill its obligations, adding that Some outstanding issues, including technology and cybersecurity, will be worked on in the second phase of the trade agreement.

Mnuchin also noted that the Huawei crisis is not an obstacle with regard to relations between the United States and China, and this came hours after the report that touched on the fact that the American administration is drafting rules to prevent more Huawei Chinese sales, which highlighted the continuing tensions between Washington and Beijing in particular. That the US tariffs on Chinese goods at about $ 360 billion still remain after the main elections that until the completion of the second phase of the agreement.

Technical analysis

The dollar versus the yen fluctuated in a narrow path since yesterday, and we notice that the stochastic starts providing positive signals on the four hour time frame, which supports expectations for the continuation of the bullish intraday direction, mainly awaiting the visit of the 110.50 level.

In general, we will continue to favor the bullish trend during the upcoming sessions provided that the price maintains its stability above 109.33.

The expected trading range for today is between 109.33 support and 110.70 resistance.

Expected trend for today: bullish.

The overall trend is downward. The resistance level of 225.50 holds back buyers. A bearish divergence was formed on the MACD indicator, and Stochastic Oscillator indicator showed an exit from the overbought zone.

Trading recommendations:

Sell below the support level of 222.40.

Stop loss for the resistance level of 225.50.

Target levels – 219.00; 215.20; 211.00.