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When buying an option against the trend, it is necessary to confirm other technical analysis tools – the presence of divergence, reversal candlestick 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 tools of technical and fundamental analysis.

The US dollar fluctuated in a narrow bullish range during the Asian session against the Japanese yen following the developments and economic data that followed on Tuesday on the Japanese economy and on the eve of developments and economic data expected on Tuesday by the US economy, the largest economy in the world, including the speech of the Federal Reserve Governor Jerome Powell.

At 05:52 AM GMT, the USDJPY rose 0.15% to 107.42 levels from 107.26 opening levels, after hitting a session high of 107.44, and a low of 107.21.

The Japanese economy followed the release of the annual Household Expenditure Index which showed growth accelerated to 1.0% vs. 0.8% in July's annual reading, surpassing expectations for an acceleration of growth to 0.9%. The annual average wage index shrank to 0.2%, in line with expectations, versus 1.0% in the prior July reading.

We also followed the third largest economy in the world with the release of the current account reading which showed the surplus widened to 1.72 trillion yen from 1.65 trillion yen in July, beating expectations for a widening surplus to 1.68 trillion yen, while the seasonally adjusted reading showed The index also widened the surplus to 2.16 trillion yen from 2.00 trillion yen in July, also beating expectations of 2.07 trillion yen.

The Japanese Cabinet Office revealed that the ECW watchers survey of current and future conditions showed that the contraction shrank to 46.7 from 42.8 in August, beating expectations for a contraction to 43.3, while the future reading showed a widening contraction. To 36.9 vs. 39.7 in August, worse than expectations at 38.7.

On the other hand, investors are currently awaiting the US economy to reveal the PPI reading, which is a preliminary indicator of inflationary pressures that may reflect the stability of growth at 0.1%, little changed from August, while the core reading of the index itself may show a slowdown. The pace of growth to 0.3% vs. 0.2%, and the annual reading of the same index may show stability of growth at 1.8%.

In the same context, the core annual PPI reading may reflect a stable growth rate of 2.3%, little changed from the previous annual reading in August, before we see the FOMC member and Chicago Fed Chairman Charles. Evans at the Chicago Rotary Lunch.

Federal Reserve Governor Jerome Powell delivered a speech titled "A Look from the Federal Reserve" at the annual meeting of the National Association of Business Economics in Denver, hours after Powell expressed the importance of the Fed's independence away from politics, and before his participation tomorrow. In a panel discussion the Federal Reserve listens in Kansas City.

Markets are also looking forward to the release of the minutes of the FOMC meeting held on 17-18 September, in which it was approved to cut the federal funds rate for the second time in a row by 25 basis points to between 1.75% and 2.00%. This was in line with expectations, with the then disclosure of the Committee's expectations on growth rates, inflation and unemployment in addition to the future of interest rates for the next three years.

Technical Analysis

USDJPY traded positively yesterday to breach the 107.20 level, and is now approaching the pivotal resistance of 107.70, which requires attention from the upcoming trades, as a breach of this level will stop the negative scenario suggested in our recent reports and lead the price to achieve further gains in the intraday and short term.

The current stochastic negativity supports the chances of resuming the negative trading to break 107.20 then 106.70 and open the way for achieving the targets of the suggested bearish wave, which starts at 106.06 and extends to 105.50.

Expected trading range for today is between 106.50 support and 108.00 resistance.

Expected trend for today: Bearish.

Google shares return to try to enter the rising channel, which was moving within it after it emerged from last week and reached the level of support 1174.84 at the rate of decline of Fibonacci 382%.

SMA 50 is still a support level while 7-20 averages move above the price and form resistance.

Stochastic is in a bullish move after it has been able to exit the oversold area, thus increasing the pressure on the price to enter the channel.

The general direction of movement is: Bullish

The pivot zone of 5305.0 holds back sellers. Stochastic Oscillator indicator shows the exit from the oversold zone. The breakout of the pivot zone 5378 will result the formation of an upward 123 pattern.

Trading recommendations:

Buy above 5378.0.

Stop loss – 5305.0.

Target levels – 5554.0; 5700.0.

Gold futures fluctuated in a narrow range, tilted lower during the Asian session, shrugging off the decline of the US dollar index for the fifth session in six sessions from its highest since May 12, 2017 The US economy accepted the largest economy in the world which includes the speech of Fed Governor Jerome Powell.

Gold futures for December delivery fell 0.17% to trade at $ 1491.70 an ounce compared to the opening at $ 1493.40 an ounce, while the dollar index fell 0.01% to 98.97 compared to the opening at 98.98.

Investors are awaiting the US economy to release the PPI reading, a preliminary indicator of inflationary pressures that may reflect a stable growth of 0.1%, little changed from August, while a core reading of the index itself may show slower growth. To 0.3% vs. 0.2%, as the annual reading of the same index may show the stability of growth at 1.8%.

In the same context, the core annual PPI reading may reflect a stable growth rate of 2.3%, little changed from the previous annual reading in August, before we see the FOMC member and Chicago Fed Chairman Charles. Evans at the Chicago Rotary Lunch.

Federal Reserve Governor Jerome Powell delivered a speech titled "A Look from the Federal Reserve" at the annual meeting of the National Association of Business Economics in Denver, hours after Powell expressed the importance of the Fed's independence away from politics, and before his participation tomorrow. In a panel discussion the Federal Reserve listens in Kansas City.

Also on Wednesday, the markets are looking forward to the release of the minutes of the FOMC meeting held on September 17-18, during which it was decided to cut interest rates on federal funds for the second time in a row by 25 basis points to between 1.75% and 2.00%. This came in line with the expectations, with the disclosure at the time of the Committee's expectations on growth rates, inflation and unemployment in addition to the future of interest rates for the next three years.

On the other hand, the markets are looking forward to the launch of high-level trade talks between the US and China in Washington on Thursday and Friday as part of efforts to resolve the trade disputes between them before the expected escalation of the trade war between them by the middle of this month. Chinese goods worth $ 250 billion to 30% from 25% on the 15th of this month.

In the same vein, we have followed China's assertion that Chinese Vice Premier Liu Hu and Governor of the People's Bank of China (PBOC) Yi Gang will go to Washington for the October 10-11 talks, boosting investor hopes for the two sides to reach a conclusion. To settle in one way or another limit the escalation of the trade war between the two largest economies in the world.

US President Donald Trump said Friday that he believes there is a good chance of reaching a trade deal with China. He said that when he talks with leaders of other countries, he is doing the right way, amid concerns that some opposition Democratic Party members are for his ruling Republican Party, they may hinder the efforts being made to reach an agreement with China.

Technical Analysis

Gold is trading at the first pivotal support of 1489.00, and the price is under pressure to move below SMA 50, while Stochastic reaches oversold areas to provide positive support for the price.

Thus, the conflict between technical factors still exists, and the price needs to breach one of the pivotal levels of support 1485.00 and resistance 1530.00 to determine its next destination more accurately, noting that breaking the mentioned support will press the price to achieve the downside corrective targets extended to 1447.00 then 1413.10, while A break of resistance will confirm the return of the pair to the main bullish trend, whose targets start at 1555.00.

Expected trading range for today is between 1475.00 support and 1515.00 resistance.

Expected trend for today: Neutral.

The single currency of the European Union fluctuated in a narrow, bullish range during the Asian session to see its fifth session rebound in six sessions from the lowest since May 12, 2017 against the US dollar on the eve of developments and economic data expected on Tuesday by euro zone economies The US economy is the largest in the world, including Federal Reserve Governor Jerome Powell's speech.

At 05:13 am GMT the EURUSD rose 0.04% to 1.0975 levels from the opening at 1.0971 after the pair reached its highest level during the session at 1.0978, while the lowest level at 1.0965.

Markets are looking for Germany, the euro zone's largest economy, to release the seasonally adjusted industrial production index, which may reflect a contraction in the decline to 0.2% from 0.6% in August, before we see the trade balance reading for France, the second largest economy in the region, which may show contraction. The deficit amounted to 4.23 billion euros compared to 4.61 billion euros in July.

This comes before we see Italy, the region's third largest economy, the retail sales figure which may show the decline shrank to 0.1% from 0.5% in July. Otherwise, we followed earlier this week the European Commission expressed the need for the euro zone More proactive fiscal stimulus, with fiscal stimulus being more effective than increasing monetary stimulus.

On the other hand, investors are awaiting the US economy to reveal the PPI reading, which is a preliminary indicator of inflationary pressures which may reflect the stability of growth at 0.1%, little changed from last August, while the core reading of the index itself may appear. The pace of growth slowed to 0.3% vs. 0.2%, and the annualized reading of the same index may show stability at 1.8%.

In the same context, the core annual PPI reading may reflect a stable growth rate of 2.3%, little changed from the previous annual reading in August, before we see the FOMC member and Chicago Fed Chairman Charles. Evans at the Chicago Rotary Lunch.

Federal Reserve Governor Jerome Powell delivered a speech titled "A Look from the Federal Reserve" at the annual meeting of the National Association of Business Economics in Denver, hours after Powell expressed the importance of the Fed's independence away from politics, and before his participation tomorrow. In a panel discussion the Federal Reserve listens in Kansas City.

Also on Wednesday, the markets are looking forward to the release of the minutes of the FOMC meeting held on September 17-18, during which it was decided to cut interest rates on federal funds for the second time in a row by 25 basis points to between 1.75% and 2.00%. This came in line with the expectations, with the disclosure at the time of the Committee's expectations on growth rates, inflation and unemployment in addition to the future of interest rates for the next three years.

Technical Analysis

EUR / USD continues to fluctuate at SMA 50, which is a good support barrier at 1.0965, as the price needs to break above this level to reinforce expectations that the main bearish trend will continue.

In general, we continue to favor the bearishness that prevails within the descending channel unless 1.1025 is breached and hold above it, noting that our next main target is at 1.0840, while a breach of 1.1029 is a positive factor that will push the price to start recovery attempts targeting initially 1.1180 areas.

Expected trading range for today is between 1.0870 support and 1.1050 resistance.

Expected trend for today: Overall bearish.

The Australian dollar fluctuated in a narrow uptrend range during the Asian session to witness the bounce for the fourth session in five 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 eve of developments and economic data expected on Tuesday from Ahead of the US economy the largest in the world.

At 03:13 am GMT, the Australian dollar against the US dollar rose 0.22% to 0.6748 levels, compared to the opening levels at 0.6733, after the pair achieved the highest during the trading session at 0.6749, while the lowest level at 0.6729.

The Australian economy followed the release of the Australian National Business Confidence Index, which showed steady at zero levels from 1 in August, while the reading of the same index of confidence in the current situation widened to 2 to 1 in August. /August. This comes just hours before the release of October's Wesbeck consumer confidence index.

On the other hand, investors are awaiting the US economy to reveal the PPI reading, which is a preliminary indicator of inflationary pressures, which may reflect the stability of growth at 0.1%, little changed from what it was in August, while the core reading of the index itself may show a slowdown. The pace of growth to 0.3% vs. 0.2%, as the annual reading of the same index may show the stability of growth at 1.8%.

In the same context, the core annual PPI reading may reflect a stable growth rate of 2.3%, little changed from the previous annual reading in August, before we see the FOMC member and Chicago Fed Chairman Charles. Evans at the Chicago Rotary Lunch.

Federal Reserve Governor Jerome Powell delivered a speech titled "A Look from the Federal Reserve" at the annual meeting of the National Association of Business Economics in Denver, hours after Powell expressed the importance of the Fed's independence away from politics, and before his participation tomorrow. In a panel discussion the Federal Reserve listens in Kansas City.

On Wednesday, markets are also looking to unveil the minutes of the FOMC meeting held on September 17-18, during which it approved a 25bp cut in federal funds for the second consecutive time to between 1.75% and 2.00%. This was in line with expectations, with the then disclosure of the Committee's expectations on growth rates, inflation and unemployment in addition to the future of interest rates for the next three years.

Fed Governor Powell noted at the end of last week's opening remarks at a Fed event in Washington that the US economy is good so far and that the Fed's task is to keep the economy as strong as possible. Approaching the target at two percent.

Powell also said last Friday that the US economy faces long-term challenges as it addresses the fact that low interest rates make it difficult to cut interest rates on federal funds in the event of a recession, adding that the Federal Reserve is currently looking at the efficiency of monetary policy tools currently available. There are two FOMC meetings left this year and the state of the economy will be discussed.

Technical analysis

AUDUSD is showing sideways and narrow range trading around 0.6750, therefore, no change to the bearish trend scenario based on stability below 0.6840, organized within the main descending channel shown, supported by the negative SMA 50 and Stochastic, noting that Our next target is at 0.6595.

Expected trading range for today is between 0.6680 support and 0.6800 resistance.

Expected trend for today: Bearish.

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

The overall movement is upward. The downward pattern shows weakness. A bullish divergence formed on the Awesome Oscillator, while Stochastic Oscillator shows an exit from the oversold zone.

Trading recommendations:

Buy as the 123 pattern is forming, with the first wave breaching the inclined channel of the descending pattern, completing it.

Stop Loss under the support level 1.2150.

Target levels – 1.2350; 1.2470.

The pair is supported amid the falling demand for defensive assets as the Fed is expected to continue reducing interest rates and bankrolling the dollar, which would stimulate the growth of demand for risk assets. In this scenario, the Japanese yen will sell off as a safe haven currency.

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

Trading recommendations:

The pair may correct up to 107.05 amid local overoldness and in anticipation of today’s Jerome Powell speech. If he confirms the QE4 expectations, the pair will reverse upwards and surge to 108.45.

When buying an option against the trend, it is necessary to confirm other technical analysis tools – the presence of divergence, reversal candlestick 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 tools of technical and fundamental analysis.