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The pair met a strong resistance level amid better outlook for compromise in the US-China trade talks.

The price is above the middle Bollinger band, above SMA 5 and SMA 14. RSI is above the level of 50% and indicates a weakening of growth. Stoch are uninformative in the overbought zone.

Trading recommendations:

If the pair goes above 0.6780, it may continue further up to 0.6810.

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

Analysis based on round-number levels, price channels and modified Elliot Waves

The resistance level of 1.0937 held back buyers. A bearish divergence has formed on Awesome Oscillator indicator, and Stochastic Oscillator indicator signals oversoldness. An H2 level upward pattern and the wave C internal pattern (M15 level) are turncated, which indicates the weakness of buyers.

Trading recommendations:

Buy as a descending wave pattern is forming, where the wave A breaks the inclined channel of the H2 level ascending structure, completing it.

Stop Loss at the resistance level 1.0937.

Target levels - 1.0870; 1.0831.

The overall movement is upward. The support level of 1680 held back sellers. A bullish divergence has formed on Awesome Oscillator, while the Stochastic Oscillator shows an exit from the oversold zone. Breaking through the pivot zone 1746.0 will result in the formation of an upward pattern 123.

Trading recommendations:

Buy above 1746.0

Stop Loss – 1680.0.

Target levels – 1852.0; 2000.0.

The US dollar fluctuated in a narrow uptrend range during the Asian session to witness the bounce for the third session in six sessions from the lowest since September 5 last yen against the Japanese yen following the developments and economic data that followed from the Japanese economy and on the eve of developments and economic data expected on Thursday from Ahead of the US economy the largest in the world.

At 05:58 AM GMT, USD / JPY rose 0.01% to 107.49 levels from 107.48 opening levels, after hitting a session high of 107.77 and a low of 107.04.

The Japanese economy followed the release of inflation data with the release of the PPI reading, which is a preliminary indicator of inflationary pressures, which showed steady at zero levels in line with expectations against a contraction of 0.3% last August, while the annual reading of the same indicator showed the expansion of deflation to 1.1% is also in line with expectations versus 0.9% in the prior yearly reading for August.

This came in conjunction with the release of the machinery orders index, which showed that the decline shrank to 2.4% from 6.6% in July, worse than expectations for stability at zero levels, while the annual reading of the same index showed a decline of 14.5% against a rise of 0.3%, also worse Expectations of a decline of 8.4%, and also with the annual reading of bank lending showed slower growth to 2.0% compared to the previous reading and expectations of 2.1%.

On the other hand, investors are awaiting the US economy to release inflation data with the release of the CPI reading which may reflect the stability of growth at 0.1% unchanged from August, while the core reading of the same indicator may show growth slowed to 0.2% vs. 0.3% While the annualized reading of the index may show acceleration of growth at 1.7% vs. 1.8%, the core annual reading of the index may reflect the stability of growth at 2.4%.

This comes in conjunction with the release of the index of claims for the last week on October 5, which may reflect a decrease of 4 thousand applications to 215 thousand applications compared to 219 thousand tabs the previous weekly reading, while the reading of the claims application index may show investors for the past week in September 28 Stabilizes little changed from the previous weekly reading of 1,651 thousand applications.

Technical Analysis

USD / JPY is trading today with a significant rise to test the pivotal resistance of 107.70 and hold steady below it so far, accompanied by the emergence of clear negative signals through the stochastic, waiting to stimulate the price to resume the bearish bias in the coming sessions.

Therefore, the bearish scenario will remain valid during the coming sessions provided that the stability is below the mentioned resistance.

Expected trading range for today is between 106.60 support and 108.10 resistance.

Expected trend for today: Bearish.

Gold futures fluctuated in a narrow range upward during the Asian session to witness the recovery of the seventh session in eight sessions from the lowest since August 4 last, ignoring the rise of the US dollar index according to the inverse relationship between them on the eve of developments and economic data expected on Thursday from The US economy has accepted the world's largest economy and the start of trade talks between the United States and China in Washington.

Gold futures for December delivery rose 0.01% to trade at $ 1507.23 an ounce compared with the opening at $ 1505.69 an ounce, knowing that gold achieved the highest price at $ 1516.70 an ounce, while the index rose US dollar 0.03% to 99.01 compared to the opening at 98.98

Investors are awaiting the US economy to release inflation data with the release of the CPI reading which may reflect a stable growth of 0.1%, little changed from August, while the core reading of the same index may show growth slowed to 0.2% vs. 0.3%, When the annual reading of the index may show acceleration of growth at 1.7% vs. 1.8%, and the core annual reading of the index may reflect the stability of growth at 2.4%.

This comes in conjunction with the release of the index of claims for the last week on October 5, which may reflect a decrease of 4 thousand applications to 215 thousand applications compared to 219 thousand tabs the previous weekly reading, while the reading of the claims application index may show investors for the past week in September 28 Stabilizes little changed from the previous weekly reading of 1,651 thousand applications.

On Wednesday, we followed the release of the minutes of the FOMC meeting held on September 17-18, which touched on the decision to cut the federal funds rate for the second time in a row by 25 basis points to between 1.75% and 2.00%. The Fed's forecasts for growth, inflation and unemployment as well as the future of interest rates for the next three years.

On the other hand, investors are eyeing the launch of a new round of high-level trade talks between the two largest economies in the world amid expectations to suspend the US administration's decision to raise tariffs on Chinese goods worth $ 250 billion to 30% from 25% by 15 of this month and impose tariffs 15% on Chinese goods worth $ 160 billion on December 15, in exchange for an agreement on the exchange rate.

Earlier this week, China confirmed that Vice Premier Liu Hu and Governor of the People's Bank of China Ye Gang would go to Washington for the October 10-11 talks, before we see some report on the fact that A high-level Chinese delegation will leave Washington today instead of Friday as planned.

Technical Analysis

The price of gold tested the pivotal resistance which is now falling to 1518.00 and bounced back from there, leaving the price confined between the pivotal levels of 1485.00 support and 1518.00 resistance, which makes us stay neutral until the price is able to breach one of the mentioned levels.

Recall that breaching the mentioned resistance will lead the price to regain the main bullish trend, where the first target is located at 1555.00, while breaking the support will put the price under the corrective downside pressure again, heading towards negative targets starting at 1447.00 and extending to 1413.10.

Expected trading range for today is between 1485.00 support and 1530.00 resistance.

Expected trend for today: Neutral.

The single currency of the European Union fluctuated in a narrow range upward during the Asian session to witness the bounce for the sixth session in eight sessions from the lowest since May 12, 2017 against the US dollar on the eve of developments and economic data expected on Thursday by euro zone economies The US economy is the largest in the world.

At 05:13 am GMT the EURUSD rose 0.14% to 1.0986 levels from the opening at 1.0971, the pair's lowest level during the session, while the pair reached its highest at 1.0993.

Markets in the euro zone's largest economy, Germany, are currently looking for a trade balance reading, which could reflect a narrowing surplus to EUR 19.4 billion from EUR 20.2 billion in July, before France's second-largest economy sees production coming out. Which may reflect slowing growth to 0.2% vs. 0.3% in July.

This comes before the third largest economy in the Eurozone is also due to release the industrial sector data with the release of the industrial production index which may show a rise of 0.2% versus a decline of 0.7% in July, leading up to the disclosure of the monetary policy meeting of the Central Bank. European held on 12 September last.

Last month, the European Central Bank's monetary policy makers decided to keep interest rates at their current zero levels and stabilize the marginal lending rate at 0.25% as the negative deposit interest rate deepened by 10 basis points to -0.50%. Quantity of 20 billion euros per month by November and the continuation of the program as long as necessary.

On the other hand, investors are awaiting the US economy to release inflation data with the release of the CPI reading which may reflect the stability of growth at 0.1% unchanged from August, while the core reading of the same indicator may show growth slowed to 0.2% vs. 0.3% While the annualized reading of the index may show acceleration of growth at 1.7% vs. 1.8%, the core annual reading of the index may reflect the stability of growth at 2.4%.

This comes in conjunction with the release of the index of claims for the last week on October 5, which may reflect a decrease of 4 thousand applications to 215 thousand applications compared to 219 thousand tabs the previous weekly reading, while the reading of the claims application index may show investors for the past week in September 28 Stabilizes little changed from the previous weekly reading of 1,651 thousand applications.

Technical Analysis

The EURUSD pair is now showing positive trades heading towards a possible test of the resistance of the descending channel, which drops to 1.1010, and as long as the price is below this level, our bearish outlook will remain valid for the coming period, mainly waiting for 1.0857.

Keep in mind that a breach of 1.1010 and holding above it will stop the negative scenario and lead the price for further gains up to 1.1180 before any new attempt to decline.

Expected trading range for today is between 1.0890 support and 1.1050 resistance.

Expected trend for today: Overall bearish.

Cisco shares plunged to the bottom of 46.30, ending the sideways movement in which it has been moving in the past two weeks. The stock dropped above support at 50% Fibonacci retracement and then next support at 61.8%. This is under the negative impact of moving averages that move above the price and push it down.

Steady trading below the 61.8% Fibonacci retracement is a key factor to start the course

A bearish condition on which the price manages to breach 46.30 support.

The stochastic is in a sideways path that tends to rise and tries to push the price off the support level.

Overall trend: Bearish.

The Australian dollar rose during the Asian session to witness the bounce for the fourth session in seven sessions from the lowest since March 18, 2009 against the US dollar following the developments and economic data followed by the Australian economy and on the eve of developments and economic data expected on Thursday by the US economy Economy in the world.

At 03:37 am GMT, AUDUSD rose 0.31% to 0.6746 levels, compared with opening levels at 0.6725, after the pair reached its highest level during the session at 0.6757, while the lowest level at 0.6710.

The Australian economy followed the release of the housing market data with the release of the Home Loan Index which showed growth slowed to 1.8% from 5.5% in July, worse than expectations for a slowdown to 3.6%, before we saw the release of the The Melbourne Institute's consumer expectations for inflationary pressures rose to 3.6% from 3.1% in September.

On the other hand, investors are awaiting the US economy to release inflation data with the release of the CPI reading which may reflect the stability of growth at 0.1% unchanged from August, while the core reading of the same indicator may show growth slowed to 0.2% vs. 0.3% While the annualized reading of the index may show acceleration of growth at 1.7% vs. 1.8%, the core annual reading of the index may reflect the stability of growth at 2.4%.

This comes in conjunction with the release of the index of claims for the last week on October 5, which may reflect a decrease of 4 thousand applications to 215 thousand applications compared to 219 thousand tabs the previous weekly reading, while the reading of the claims application index may show investors for the past week in September 28 Stabilizes little changed from the previous weekly reading of 1,651 thousand applications.

Technical Analysis

AUDUSD has not shown any strong movement in the past sessions, continuing to fluctuate around 0.6750, thus, the bearish trend scenario will remain intact for the coming period, supported by stochastic negativity and SMA 50, mainly awaiting a visit to 0.6595, with Remind the importance of stability below 0.6840 to continue the expected decline.

Expected trading range for today is between 0.6680 support and 0.6780 resistance.

Expected trend for today: Bearish.