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The euro rose on the European market on Thursday against a basket of global currencies, continuing its gains for the fourth day in a row against the US dollar, in connection with the first monthly gain in the last four months, and the biggest monthly gain in about 21 months, comes ahead of the release of important data from Europe, Economic growth during the third quarter of this year, and for inflation levels during October.

The euro rose against the dollar by about 0.2% to $ 1.1170, and the opening price of the day at $ 1.1152, and recorded the lowest level at $ 1.1151.

Yesterday, the euro gained 0.4% against the dollar, its third daily gain in a row, benefiting from falling US currency levels following the Federal Reserve's decisions.

In October trading, which officially ends when prices are settled today, the euro has so far gained 2.5% against the US dollar, making its first monthly gain in the last four months, the largest monthly gain since January 2018.

This strong monthly gain is attributed to many reasons, including the decline in the levels of buying the US currency as the best investment currently in the foreign exchange market, the easing of fears deepening the gap between the course of monetary policy in Europe and the United States, and positive developments in the separation of Britain from the European Union "Brexit" .

Later in the day investors were looking ahead to several important data from Europe on economic growth in the third quarter of this year, and on key inflation levels in October, providing strong evidence that the ECB may take new stimulus measures at upcoming meetings.

Europe's GDP is expected to grow by 0.1% in the third quarter of 2019, the European economy grew by 0.2% in the second quarter, and the annualized reading is expected to grow by 1.1% from 1.2% growth in the previous quarter. .

At the same time, the preliminary October CPI is expected to rise by 0.7% from a 0.9% rise in September, excluding food and fuel prices, which are expected to rise 1.0% from the previous reading.

Technical Analysis

The EURUSD pair rallied significantly yesterday after the US Federal Reserve's decision to cut interest rates for the dollar a quarter point to reach the first target at 1.1180, reinforcing expectations for the continuation of the bullish trend in the coming period, waiting for a breach of the mentioned level to open the way towards 1.1280 as a next stop. .

Therefore, we will continue to favor the bullish bias on the intraday and short term basis, noting the importance of stability above 1.1065 to continue the expected rise.

Expected trading range for today is between 1.1080 support and 1.1250 resistance.

Expected trend for today: Bullish.

Cisco shares continue to move sideways through the support level of 47.03 after forming what looks like a double bottom pattern.

Previously, Cisco shares plunged to the bottom of 46.30, ending the sideways movement in which it has been moving over the past two weeks. The stock dropped above support at 50% Fibonacci retracement and next support at 61.8%.

Stability above the 61.8% Fibonacci retracement is a key factor to start the course

A bullish condition on which the price is able to breach the 50-20 moving averages that move above the price and form resistance levels.

Stochastic is on an uptrend towards overbought area, which will increase the positive pressure on the price and strengthen the support level.

Expected trend for today: Bullish.

Australian dollar rises during the Asian session to see the rebound to the 14th session in the twenty-two sessions of the lowest since March 18, 2009 against the US dollar against the US dollar following the developments and economic data that followed from the Australian economy and on the eve of developments and economic data on Thursday By the American economy the largest economy in the world.

At 02:54 AM GMT, the Australian dollar against the US dollar rose 0.30% to 0.6924 levels compared to the opening levels at 0.6903, after the pair reached its highest level since July 26 last at 0.6849, while the pair achieved the lowest During the trading session at 0.6849.

The Australian economy followed the release of the housing market data with the release of the Building Permits which showed a rise of 7.6% versus a decline of 0.6% last August, beating expectations for a 0.1% rise, while the annual reading of the same index showed a decline in the decline. To 19.0% versus 21.5% in the prior yearly reading for August, contrary to expectations that the decline would widen to 25.7%.

This came before we saw the release of the import price index, which showed a slowdown of growth to 0.4% compared to 0.9% in the second quarter, worse than that indicated a slowdown of growth to 0.5%, while the reading of the export price index reflected a slowdown of growth to 1.3% against 3.8% in the quarter Second, beating expectations for a 0.5% decline, coinciding with the private sector credit reading showed growth steady at 0.2% in September, below expectations for 0.3%.

On the other hand, investors are currently awaiting the US economy to reveal personal spending and income data which may reflect an acceleration in personal spending growth to 0.3% vs. 0.1% in August, and slowing personal income growth to 0.3% vs. 0.4% in August, Core CPI reading may show a steady pace of growth in September at 0.1%.

This comes in conjunction with the release of the labor unit cost index, which may reflect the acceleration of growth to 0.7% compared to 0.6% in the second quarter, and the issuance of claims for the benefit last week on the 26th of this month, which may reflect an increase of 3 thousand applications to 215 thousand requests, Manufacturing data is released with the Chicago PMI reading which may reflect a contraction in contraction to 48.4 from 47.1 in September.

On the other hand, on Thursday we followed the end of the October 29-30 Federal Open Market Committee meeting in Washington, during which the Fed's monetary policy makers decided to cut the federal funds rate for the third consecutive meeting by 25 basis points to between 1.50% and 1.75%, which was in line with expectations.

Federal Reserve Governor Jerome Powell noted at a press conference yesterday that the Federal Reserve will temporarily stop adjusting monetary policy until the end of the year unless expectations change substantially in the coming period. The Fed will require a large and sustained movement in inflation to consider resumed rate hikes.

Technical Analysis

AUDUSD has successfully breached the neckline of the double bottom pattern shown above, providing a good positive impetus to support the bullish outlook over the coming sessions, paving the way towards 0.7015 which is our next major target.

Therefore, the bullish bias remains likely for today, taking into consideration that a break of 0.6895 may force the price to provide negative trades to initially test 0.6810 areas before any new attempt to rise.

Expected trading range for today is between 0.6895 support and 0.6980 resistance.

Expected trend for today: Bullish.

When buying an option against the trend, it is necessary to confirm other instruments of technical analysis - the presence of divergence, candlestick reversal patterns. Buy against trend strictly on level retest! 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 tools of technical and fundamental analysis.

The currency pair is trading in the range of the round important level 1.1100. The 365 and 135 moving averages are directed upwards and the price is not far from the fast moving average (135). A Bullish divergence has formed on Awesome Oscillator indicator. Breaking through the round secondary level 1.1120 will result in the formation of an upward structure within the overall uptrend.

Trading recommendations:

Buy above round secondary level 1.1120.

Stop loss under round secondary level - 1.1080 – 1.1073.

Target levels – 1.1172; 1.1219.

The pair is trading above 1.1100 in anticipation of the Fed's decision on monetary policy. If the US regulator makes it clear that today's rate cut will be the last for the foreseeable future, it may lead to a reversal of the pair down.

The price is above the middle Bollinger band, above SMA 5 and SMA 14. RSI is located above the level of 50% and moves horizontally. Stoch turn down in the overbought zone.

Trading recommendations:

Sell the pair after its decline below 1.1100 with probable targets of 1.1070 and 1.1030.

The US dollar fluctuated in a narrow range, tilted lower during the Asian session to witness the rebound for the second consecutive session from the highest since early August, when it tested the highest since late May against the Japanese yen following the developments and economic data that followed from the Japanese economy and on the threshold Economic developments and data expected on Wednesday by the US economy, including decisions and directions of the Federal Open Market Committee and the upcoming press conference of the Federal Reserve Governor Jerome Powell.

At 06:11 AM GMT, the USDJPY fell 0.05% to 108.84 levels from the opening levels of 108.89, after the pair reached its lowest level during the session at 108.81, while the pair achieved the highest at 108.90.

The Japanese economy followed the release of the seasonally adjusted preliminary retail sales figure, which showed growth accelerated to 7.1% from 4.6% in the previous month of August, beating expectations for a 6.0% growth. To 9.1% versus 1.8% in the prior yearly reading for August, also beating expectations for 6.0% growth.

However, since last month's rise in retail sales in Japan came before the sales tax hike in the world's third largest economy was implemented, we continued on Tuesday. Japanese Economy Minister Yasushi Nishimura said the Japanese government will work hard with the Bank of Japan through fiscal policies. Appropriate in order to emerge from the economic downturn.

The Japanese economy's comments came yesterday as markets looked ahead to BOJ monetary policy makers' decisions and the release of the Bank of Japan's monetary policy statement on Thursday, ahead of Bank of Japan Governor Haruhiko Kuroda's upcoming press conference and amid expectations for further stimulus by the Bank of Japan. Coming to stimulate the third largest economy in the world and reach inflation to the target at two percent.

On the other hand, investors are awaiting the US economy to release preliminary data for the labor market with the release of the indicator of change in private sector jobs, which may reflect the slowing pace of job creation to 125 thousand jobs added to 135 thousand jobs added in September, hours before The monthly report on non-farm payrolls and unemployment rates, as well as the hourly rate of income for the month of October.

The market is then looking to reveal the preliminary GDP figure for the US for the third quarter, which may show a slower pace of growth for the world's largest economy to 1.6% versus 2.0% in the second quarter, and the preliminary GDP reading measured in prices for the quarter. The quarterly pace of growth slowed to 1.8% from 2.4% in the second quarter.

This comes in conjunction with the FOMC meeting in Washington, which is expected to cut interest rates on federal funds by 25 basis points for the third meeting in a row to between 1.50% and 1.75%, and before we witness the upcoming press conference of the Federal Reserve Governor Jerome Powell, following US President Donald Trump's demand for more stimulus and interest rate cuts.

Technical Analysis

USDJPY is showing some slight bearish bias affected by the negativity of the stochastic indicator, which is gradually gaining positive momentum, while SMA 50 continues to provide positive support for the price, to continue moving inside the ascending channel shown in the chart above.

Therefore, we hold onto our bullish outlook provided that stability is above 108.40, noting that our awaited targets start at 109.33 and extend to 110.50 after breaching the previous level.

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

Expected trend for today: Bullish.

Gold futures fluctuated in a narrow upward range during the Asian session, ignoring the positive stability of the US dollar index according to the inverse relationship between them on the eve of developments and economic data expected on Wednesday by the US economy, the largest economy in the world, which includes decisions and directions of the Federal Open Market Committee and the Conference Fed Press Governor Jerome Powell.

Gold futures for December delivery rose 0.04% to trade at $ 1,491.10 per ounce compared to the opening at $ 1,490.50 an ounce, shrugging off the US dollar index 0.03% to 97.71 compared to the opening at 97.68.

Investors are awaiting the US economy to release preliminary data on the labor market with the release of the indicator of the change in the private sector jobs, which may reflect the slowing pace of job creation to 125 thousand jobs added to 135 thousand jobs added in September, hours before the release of Monthly Non-Farm Payrolls and Unemployment Rate plus Hourly Income for October.

The market is then looking to reveal the preliminary GDP figure for the US for the third quarter, which may show a slower pace of growth for the world's largest economy to 1.6% versus 2.0% in the second quarter, and the preliminary GDP reading measured in prices for the quarter. The quarterly pace of growth slowed to 1.8% from 2.4% in the second quarter.

This comes in conjunction with the FOMC meeting in Washington, which is expected to cut interest rates on federal funds by 25 basis points for the third meeting in a row to between 1.50% and 1.75%, and before we witness the upcoming press conference of the Federal Reserve Governor Jerome Powell, following US President Donald Trump's demand for more stimulus and interest rate cuts.

Powell noted in advance that the risks to the US economy are the uncertainty over the trade war between Washington and Beijing and the UK exit from the European Union. United and China to the agreement by the middle of next month.

In addition to Brussels's agreement on Monday to extend the Brexit until January 31, it limits the chances of interest rate cuts at the Fed meeting. Optimism for Washington and Beijing to conclude the first phase of the trade agreement at the Asia Economic Cooperation Summit The Pacific (APEC) in Chile shrank on Tuesday following a report followed by Reuters news agency.

A US administration official told Reuters yesterday about the developments in the trade war between the US and China and the chances of reaching the stage of the agreement between the parties, that it may not be signed, while expressing to Reuters, "If not signed in Chile, this does not mean that It just collapses, meaning it is not ready, "he said, hours after Trump on Monday predicted a trade deal with China would be" ahead of schedule. "

Technical Analysis

The price of gold stabilizes around 1489.00 level, and the price was subjected to a negative negative pressure yesterday, indicating that the price is heading for a further bearish correction in the intraday and short term, supported by moving below SMA 50, while stochastic provides positive signals that may protect the price from incurring further Of losses.

Therefore, we prefer to remain neutral on a temporary basis until the price confirms its position regarding 1489.00, where stability below it will confirm the start of the bearish corrective wave, whose next main target is at 1447.00, while upside above will reactivate the bullish scenario which initially targets 1535.00.

Expected trading range for today is between 1470.00 support and 1510.00 resistance

Expected trend for today: Neutral

The single currency of the European Union fluctuated in a narrow range tilted to decline during the Asian session to witness the bounce of the fifth session in eight sessions from its highest since August 14 against the US dollar on the eve of developments and economic data expected on Wednesday by the economies of the euro zone and the US economy The decisions and directions of the Federal Open Market Committee and the upcoming press conference of Fed Governor Jerome Powell.

At 05:23 am GMT, EUR / USD fell 0.02% to 1.1110 levels compared to the opening at 1.1112, after the pair reached its lowest level during the session at 1.1106, while the pair achieved the highest at 1.1115.

The French economy, the region's second-largest, is currently looking to reveal its third-quarter growth data with the preliminary GDP figure, which may reflect a slower pace of growth to 0.2% vs. 0.3% in the second quarter. The pace of growth to 1.3% versus 1.4% in the annual reading for the second quarter.

This comes before the release of the preliminary CPI reading by Germany, the largest economy in the euro zone, which may reflect the stability of zero levels remained unchanged from September, and before the release of the annual reading of the same indicator for Spain, the fourth largest economy of the region, which may clarify Growth stabilized at 0.1%, up to Germany's Unemployment Change which may reflect a rise to 2K versus a 10K decline in September.

On the other hand, investors are awaiting the US economy to release preliminary data for the labor market with the release of the indicator of change in private sector jobs, which may reflect the slowing pace of job creation to 125 thousand jobs added to 135 thousand jobs added in September, hours before The monthly report on non-farm payrolls and unemployment rates, as well as the hourly rate of income for the month of October.

The market is then looking to reveal the preliminary GDP figure for the US for the third quarter, which may show a slower pace of growth for the world's largest economy to 1.6% versus 2.0% in the second quarter, and the preliminary GDP reading measured in prices for the quarter. The quarterly pace of growth slowed to 1.8% from 2.4% in the second quarter.

This comes in conjunction with the FOMC meeting in Washington, which is expected to cut interest rates on federal funds by 25 basis points for the third meeting in a row to between 1.50% and 1.75%, and before we witness the upcoming press conference of the Federal Reserve Governor Jerome Powell, following US President Donald Trump's demand for more stimulus and interest rate cuts.

Technical Analysis

The EURUSD pair provided positive trading yesterday evening and closed the daily candle above 1.1105, reinforcing expectations for the continuation of the bullish trend over the intraday basis, aiming to visit 1.1180 as a first stop, waiting for further rallies in the coming sessions supported by SMA 50.

Conversely, failing to hold above 1.1105 and falling to break the 1.1065 level will stop the positive scenario and press the price for further bearish correction in the coming period.

Expected trading range for today is between 1.1020 support and 1.1200 resistance.

Expected trend for today: Bullish.

The Aussie fluctuated in a narrow, bearish range during the Asian session to witness a rebound for the second session from its highest since October 22, when it tested its highest since September 16 against the US dollar following the developments and economic data that followed from the Australian economy. Economic developments and data are expected to be released on Wednesday by the US economy, which will include the decisions and directions of the Federal Open Market Committee and the upcoming press conference of Federal Reserve Governor Jerome Powell.

At 03:53 AM GMT the AUDUSD fell 0.07% to 0.6860 levels from the opening levels of 0.6865, after the pair reached its lowest level during the session at 0.6849, while the pair achieved the highest at 0.6849.

The Australian economy followed the release of the housing market data with the Housing Industry Association's New Home Sales showing that growth slowed to 5.7% from 7.3% in August, before inflation data was released with the release of the release. The CPI reading showed that growth slowed to 0.5% in line with expectations versus 0.6% in the previous quarter.

In the same context, the core reading of the CPI showed that growth stabilized at 0.4%, little changed from the previous reading in the second quarter, in line with expectations, while the annual reading of the CPI showed that the acceleration of growth to 1.7% against 1.6% In the annual reading prior to the second quarter, consistent with expectations that indicated the same proportion.

The core annual CPI reading showed growth at 1.6% unchanged from the second quarter, also in line with expectations, hours after Reserve Bank of Australia Governor Philip Lowe delivered a speech titled "Some Echoes of Melville" in an annual lecture. Public hosted by the Australian National University in Canberra in which he expressed the view that interest rates should remain low for a while.

On the other hand, investors are awaiting the US economy to release preliminary data for the labor market with the release of the indicator of change in private sector jobs, which may reflect the slower pace of job creation to 125 thousand jobs added to 135 thousand jobs added in September, hours before The monthly report on non-farm payrolls and unemployment rates, as well as the hourly rate of income for the month of October.

The market is then looking to reveal the preliminary GDP figure for the US for the third quarter, which may show a slower pace of growth for the world's largest economy to 1.6% versus 2.0% in the second quarter, and the preliminary GDP reading measured in prices for the quarter. The quarterly pace of growth slowed to 1.8% from 2.4% in the second quarter.

This comes in conjunction with the FOMC meeting in Washington, which is expected to cut interest rates on federal funds by 25 basis points for the third meeting in a row to between 1.50% and 1.75%, and before we witness the upcoming press conference of the Federal Reserve Governor Jerome Powell, following US President Donald Trump's demand for more stimulus and interest rate cuts.

Powell noted earlier that the risks to the US economy were the uncertainty over the trade war between Washington and Beijing and the issue of the exit of the United Kingdom from the European Union. The Pacific (APEC), as well as Brussels's agreement on Monday to extend the Brexit until January 31, limits the chances of a rate cut at the Fed meeting.

Technical Analysis

AUDUSD is showing a slight bullish bias in an attempt to resume the bullish corrective trend, and SMA 50 continues to provide positive support for the price, keeping the positive scenario valid for the next period, awaiting activation of the positive effect of the double bottom pattern shown in the chart above. The main target is located at 0.7015.

On the other hand, it should be noted that breaching 0.6785 and holding below it will stop the expected rally and bring the price back to the main bearish path again.

Expected trading range for today is between 0.6820 support and 0.6920 resistance.

Expected trend for today: Bullish.