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The US dollar rallied during the Asian session to rebound to its ninth session in thirteen sessions from the lowest since November 9, 2016, indicating the highest since early August, when it tested the highest since late May against the Japanese yen following the developments and economic data It was followed by the Japanese economy and on the eve of developments and economic data expected on Wednesday by the US economy.

At 06:01 AM GMT, the USDJPY rose 0.22% to 107.78 levels from 107.54 opening levels, after hitting a six-week high of 107.85, while hitting a session low of 107.50. .

The Bank of Japan revealed that the manufacturing business statistics showed that the contraction shrank to 0.2 vs. 10.4 in the second quarter, beating expectations for a contraction to 7.1, while the business sector reading showed The overall industry expanded to 1.1 vs. 3.7 contraction in the second quarter, also outperforming expectations for a 1.0 contraction.

On the other hand, investors are awaiting the US economy, the largest economy in the world, to release the PPI reading, which is a preliminary indicator of inflationary pressures that may reflect the acceleration of stability at zero levels against the growth of 0.2% in July, while the core reading of the index may appear Growth is steady at 0.2%, as the annual reading of the same index may show stability at 1.7%.

In the same context, the core annual PPI reading may reflect a 2.2% vs. 2.1% advance in July, before we see the final release of the wholesale inventory index, which could show a stable growth of 0.2%, little changed from The initial reading for the month of July and against the stability at zero levels last June.

USDJPY is trading positively today to breach the 38.2% Fibonacci retracement level, which supports our continuation of the bullish trend, noting that our next target is at 108.74, which is the breach of the key rally towards 109.60 as the next stop.

Therefore, we will continue to favor the bullishness over the coming sessions, which is affected by the previously completed double bottom pattern, noting that the continuation of the expected rise depends on stability above 106.79.

Expected trading range for today is between 107.00 support and 108.50 resistance.

Expected trend for today: Bullish.

The support level of 104.70 held up against Aeroflot share price and prevented it from falling further to rebound upwards and test resistance 107.25.

The price is still moving below the 7-20-50 moving averages, which puts pressure on the price to retest 104.70 support again.

Stochastic is in a sideways direction and is heading higher after exiting the oversold area, which increases pressure on the price and pushes it to retest 107.25 resistance.

General direction of movement: Sideways.

Gold futures fluctuated in a narrow, bullish range during the Asian session to rebound for the second session from the lowest since August 13 amid the decline of the US dollar index for the seventh consecutive session from the highest since May 12, 2017 according to The reverse relationship between them on the eve of developments and economic data expected on Wednesday by the US economy, the largest economy in the world.

At 04:20 am GMT gold for December delivery rose 0.61% to trade at $ 1492.15 an ounce, compared with the opening at $ 1486.11 an ounce. The dollar index fell 0.01% to 98.33 compared to the opening at 98.34.

Investors are awaiting the US economy to reveal the PPI reading, which is a preliminary indicator of inflationary pressures that may reflect a steady acceleration at zero levels against 0.2% growth in July, while the core reading of the index itself may show stable growth at 0.2%. The annualized reading of the same index could show growth stabilizing at 1.7%.

In the same context, the core annual PPI reading may reflect a 2.2% vs. 2.1% advance in July, before we see the final release of the wholesale inventory index, which could show a stable growth of 0.2%, little changed from The initial reading for the month of July and against the stability at zero levels last June.

Yesterday, US Treasury Secretary Stephen Mnuchin said that the upcoming US-China trade talks by early October in Washington will focus on the value of the Chinese yuan, adding that the Governor of the People's Bank of China may attend. That round of talks comes after the Chinese currency recently crossed the 7-yuan-dollar mark for the first time in a decade.

US Treasury Secretary Manouchein also noted earlier this week that the US administration is considering new tax cuts next year, noting that a trade deal with Japan is expected to be concluded soon and that trade negotiations with France are still underway, he said. American Donald Trump prefers to continue to impose a tariff in the absence of a trade agreement with China.

Mnuchin also said Monday that the US administration is ready to sign a trade agreement with China in the event that it is in the interest of the United States, although he expressed that the impact of trade war on the US economy was not observed more than a year after the outbreak, adding that he does not see the possibility of a recession Nevertheless, there is no reason to say that the position of Federal Reserve Governor Jerome Powell is not under threat.

US President Trump recently said his administration is considering expanding tax cuts later and that the Fed, which he and Powell have repeatedly criticized, should act proactively and cut interest rates on federal funds. The FOMC is scheduled to meet on 17-18. From September in Washington the committee is expected to offer a 25 basis point rate cut for the second consecutive meeting.

The worsening trade war between the world's two largest economies has recently reinforced investor fears about the pace of US and Chinese growth and the global economy as a result of the US administration's growing trade protectionism with many countries, led by China. The United States and China resumed their trade negotiations by early next month in Washington to ease market concerns.

The People's Bank of China (PBOC) announced Friday that it will cut banks 'mandatory reserve rate by 50 basis points from September 16, and is seeking to expand some banks' cuts to about 100 basis points. The reserve requirement will go through two phases of 50 basis points each, stating that the cut will provide liquidity of 900 billion yuan.

Otherwise, markets are looking ahead Thursday for the outcome of ECB decisions and ECB Governor Mario Draghi's press conference amid expectations that tomorrow's ECB monetary policy makers will lower interest rates to a negative range and announce new expansionary measures and likely resumed easing policies. Quantification to support the pace of growth of the eurozone economies.

Technical Analysis

The price of gold has retested the previously broken support which is now turning into resistance at 1498.00, noting that stability below this level will push the price to achieve further bearish intraday movement, and the next target is to test 1480.00.

Therefore, the bearish bias remains likely during the day, keeping in mind that breaching the target will extend the bearish wave to target 1450.00 areas in the short term, while breaching 1498.00 will stop the expected decline and lead the price to regain the main bullish trend again.

Expected trading range for today is between 1477.00 support and 1500.00 resistance.

Expected trend for today: Bearish.

The euro-zone single currency fluctuated in a narrow, bullish range during the Asian session to see its fourth session rebound in seven of its lowest since May 15, 2017 against the US dollar amid the lack of economic data from the euro-zone economies and on the eve of developments The economic data expected on Wednesday by the US economy, the largest economy in the world.

At 05:11 AM GMT the EURUSD rose 0.08% to 1.1052 levels from the opening at 1.1043, after hitting a session high of 1.1056, while a low of 1.1038.

Investors are currently awaiting the US economy to release the PPI reading, which is a preliminary indicator of inflationary pressures that may reflect the acceleration of steadyness at zero levels against 0.2% growth in July, while the core reading of the same indicator may show stable growth at 0.2%. An annualized reading of the same index may also show growth stabilizing at 1.7%.

In the same context, the core annual PPI reading may reflect a 2.2% vs. 2.1% advance in July, before we see the final release of the wholesale inventory index, which could show a stable growth of 0.2%, little changed from The initial reading for the month of July and against the stability at zero levels last June.

Technical Analysis

EURUSD continues to fluctuate in a tight path, keeping the bullish scenario intact over intraday basis, noting that the rally is temporary, waiting to test 1.1100 before resuming the bearish trend, taking into consideration that breaching the target will push the price to 1.1180 As a next positive target, a break of 1.1005 will stop the expected rally and press the price down again.

Expected trading range for today is between 1.0970 support and 1.1140 resistance.

Expected trend for today: Temporarily bullish.

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.

USDCAD

The pair consolidates above the level of 1.3135 amid the slowing growth of crude oil prices and in anticipation of the ECB and the Fed's monetary policy decisions. If the oil prices correct downwards, the pair may recover locally, although the general prediction is still downtrend.

The price is below the middle Bollinger band, above SMA 5, but below SMA 14. RSI is located above the oversold zone and moves horizontally. Stoch takes place up above the oversold area.

Trade recommendations:

The pair may rebound to 1.3180. Sell it either at its growth from this level, or after its drop below the level of 1.3135 with the target of 1.3100.

The overall movement is upward, as evidenced by the 365 and 150 moving averages. Now the stock is trading in the range of moving averages. A Fractal start formed above 150 (bulls broke through the moving average). Breaching of the Fractal Start will result in a formation of an uptrend pattern (123) within the overall uptrend.

Trading recommendations:

Buy above 107.00.

Stop loss – 104.00.

Target levels-112.00; 119.00.

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

The overall movement of the currency pair is downward. Now the pair is trading in the range of 135 and 365 moving averages.Fractal Start formed below 135 EMA, if it’s breached, a level N1 downward pattern within the wave C of level H2 will form, which will probably be the wave C of the level H4 downward pattern. Wedge pattern formed.

Trading recommendations:

Sell below 1.1029

Stop loss – 1.1080

Target levels – 1.0980; 1.0930.

The US dollar fluctuated in a narrow uptrend range during the Asian session to witness the bounce for the eighth session in the twelve sessions of the lowest since November 9, 2016, showing the highest since August 2 against the Japanese yen following the developments and economic data that followed The Japanese economy is on the threshold of economic developments and data expected on Tuesday by the largest US economy in the world.

At 06:16 am GMT, the US dollar against the Japanese yen rose 0.11% to 107.36 levels compared to the opening levels at 107.24, after the pair reached its highest level in six weeks at 107.50, while the lowest level during the session trading at 107.18.

Japan's third largest economy followed the release of the Bank of Japan's annual bank lending index, which showed growth accelerated to 2.4% in line with expectations, compared to 2.3% in the previous annual reading last July. We are witnessing the release of the annual preliminary reading of the Machinery Equipment Orders which showed a decline to 37.1% from 33.0% in July.

On the other hand, investors are awaiting the US economy for the release of the employment and employment turnover, which may reflect a decline to 7.31 million compared to 7.35 million in June, following hours of US labor market data for August. Last Friday showed the unemployment rate stabilized at 3.7% for the third month in a row in line with expectations.

In the same context, we also followed last weekend's Average Hourly Earnings showing that the pace of growth accelerated to 0.4% compared to the previous reading for July and expectations of 0.3%, while the change in jobs index in sectors other than agriculture at the time showed a slowing pace of creation The number of jobs added to 130 thousand jobs compared to 159 thousand jobs added in July, contrary to expectations that indicated 163 thousand jobs added.

Technical Analysis

USDJPY traded positively yesterday to move away from 106.70, reinforcing expectations for the continuation of the bullish trend in the coming period, and the way is open for achieving our positive targets starting at 108.30 and extending to 109.30.

The positive effect of the double bottom pattern is still effective, noting the importance of stability above 106.70 to continue the expected rally.

Expected trading range for today is between 106.70 support and 108.30 resistance.

Expected trend for today: Bullish.

Google shares rose again and managed to enter the rising channel again after it came out of it last week.

Moving averages 7-20-50 form support levels near 38.2% Fibonacci retracement level.

Stochastic is in a bullish move that has entered the overbought zone which will increase the positive pressure on the price and push it higher.