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The euro rose on the European market on Thursday against a basket of global currencies, to maintain gains for the second day in a row against the US dollar, with the European Union to give Britain a new postponement of Brexit, so that it can pass the recent Johnson agreement in the British Parliament, comes ahead of the release of important data The main sectors that make up the European economy during October, in addition to the results of the ECB monetary policy meeting.

The euro rose against the dollar by 0.1% to $ 1.1141, and the opening price of the day at $ 1.1129, and recorded the lowest level at $ 1.1128.

The euro ended yesterday's trading up 0.1% against the dollar, its first gain in three days, with correction from a two-month high of $ 1.1180 halted.

European Council President Donald Tusk said he had recommended to EU leaders that Britain should give Brexit a new postponement, and senior EU diplomats said the delay would likely be three months.

The British parliament this week backed Prime Minister Boris Johnson's separation deal with European leaders, but rejected the government's tight timetable for passing legislation to pass the deal, so the proposed delay could be a last resort for the current confusion within the UK. British.

Later in the day, investors awaited data on key sectors of the European economy, to survey the extent of the economic recovery in the euro area during the fourth quarter, to be released respectively the preliminary reading of the PMI manufacturing and service sectors across Europe during October.

The ECB will conclude its October 24 meeting later, with the European interest rate decision and monetary policy statement due by 11:45 GMT, and Mario Draghi speaking by 12:30 GMT.

Most expectations are that the ECB will leave monetary policy unchanged, after announcing at the previous meeting that it was buying new assets and cutting interest rates, and vowed to take further action if necessary.

Technical Analysis

EUR / USD rebounded after testing the 1.1105 level yesterday, keeping the bullish scenario valid and effective for the coming period, supported by SMA 50, which continues to carry the price from below, waiting for the initial test of 1.1180.

The breach of the target will push the price to 1.1280 as the next positive target, while the expected rise will remain valid provided stability above 1.1105 and 1.1065 levels.

Expected trading range for today is between 1.1060 support and 1.1230 resistance

Expected trend for today: Bullish

Cisco shares are back higher after we breached 47.03 resistance and form 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 then 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 in a downtrend after it has reached overbought area, so it is possible to see a test of 47.04 support again.

The general trend is to the upside

The Australian dollar fluctuated in a narrow uptrend range during the Asian session to witness the rebound to the tenth session in seventeen sessions from the lowest since March 18, 2009 against the US dollar following the developments and economic data that followed from the Australian economy and on the threshold of developments and upcoming economic data Thursday by the US economy the largest economy in the world.

At 02:19 AM GMT the AUDUSD rose 0.01% to 0.6854 levels from the opening levels of 0.6853, after the pair reached its highest level during the session at 0.6858, while the pair achieved the lowest at 0.6844.

This followed the release of the preliminary reading of Australia's Manufacturing and Services PMI for October, which showed that the manufacturing sector contracted to 50.1 vs. 50.3, which was revised from a contraction of 49.4 last September, and the service sector widened to Worth 50.8 compared to 52.4 in September.

On the other hand, investors are currently awaiting the US economy to release the Durable Goods Orders, which accounts for about half of consumer spending, which accounts for more than two-thirds of US GDP, which may reflect a 0.5% decline versus a 0.2% rise in August. In the past, the core reading of the index itself may show a 0.2% decline versus a 0.5% rise in August.

This comes in conjunction with the release of the index of claims for the last week on the 19th of this month, which may reflect an increase of two thousand applications to 216 thousand applications compared to 214 thousand applications in the previous weekly reading, while the reading of the claims application index may show investors for the past week on 12 of this The month decreased by 4 thousand applications to 1,675 thousand applications compared to 1,679 thousand applications.

Markets are also looking to reveal the preliminary reading of the US Manufacturing and Services PMI, amid expectations that the manufacturing sector will contract to 50.7 vs. 51.1 in September, while the preliminary reading of the Services PMI may show a widening of its value. 51.0 versus 50.9 in September.

The release of the US housing market data with the release of the new home sales index, which may reflect a decline of 0.4% to 710 thousand versus 7.1% rise at 713 thousand in August, comes before we see the US Treasury unveiled the federal budget reading which It could show a surplus of $ 83.5 billion versus a $ 200.3 billion deficit in August.

Technical Analysis

AUDUSD has been trading in a narrow range since yesterday and continues to fluctuate around 0.6840, maintaining its stability above the breached resistance of the descending channel, to keep the upside scenario valid and active for today, supported by moving above SMA 50, and the price needs to get a positive incentive to contribute Pushing trading towards our next awaited target at 0.7015, while stability above 0.6840 is an important condition for the continuation of the expected rally.

Expected trading range for today is between 0.6800 support and 0.6900 resistance.

Expected trend for today: Bullish.

The currency pair is trading in the range of 135 and 365 moving averages directed downwards. Bearish divergence has formed on Awesome Oscillator indicator, and the indicator Stochastic Oscillator showed an exit from the oversold zone. The breakout of the start fractal (0.9895) will result the formation of a descending structure within the descending wave from the H4 level.

Trading recommendations:

Sell under the 0.9895.

Target levels – 0.9850 9850 (round intermediate level and trap range for pros); 0.9783 (138.2% F level from A H4).

The pair is consolidating above the level of 1.1120 in anticipation of the ECB monetary policy meeting. If the bank or Mario Draghi reports any details on the stimulus measures, it may put limited pressure on the euro.

The price is below the middle Bollinger band, above SMA 5 and SMA 14. RSI is located above the level of 50% and indicates a weakening of the price growth. Stoch also demonstrate this.

Trading recommendations:

If the pair falls below 1.1120, it is likely to continue falling to 1.1100, and then possibly to 1.1070.

A hammer reversal pattern formed on the H4 timeframe from the support level of 101.00. Bullish divergence has formed on Awesome Oscillator indicator,and Stochastic Oscillator indicator showed the intersection of moving averages in the oversold range. Breaking through 103.08 will result the formation of an upward pattern 123.

Trading recommendations:

Buy above 103.08.

Stop Loss – 101.00.

Target levels – 105.00; 107.50; 108.80.

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.

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 pair is trading at 1.1120 amid Brexit, and in anticipation of the ECB monetary policy meeting this Thursday. If the pair does not hold above this mark, it will be highly likely to resume its downward correction.

The price is below the middle Bollinger band, below SMA 5 and SMA 14. The moving averages suggest selling. RSI is at 50% and indicates a weakening of the decline. Stoch are uninformative

Trading recommendations: 
If the pair drops below 1.1120, it is likely to continue dropping to 1.1100 and then to 1.1070.

The overall movement is upward. The pair is trading in the range of the lower border of the upward price channel built on TF H4.

On TF H1, the currency pair is trading in the range of 135 and 365 moving averages in the internal downward price channel. Bullish divergence has formed on Awesome Oscillator indicator, and the Stochastic Oscillator indicator signals oversoldness.

Trading recommendations:

Buy while an ascending structure is forming, where an A wave breaks through the moving average 135, forming an initial fractal. Buy at the breakdown of the start fractal.

Stop loss below a local minimum (2.0062).

Target levels - 2.0336; 2.0550.