Analytic reviews

EURUSD

The pair is on the testing 1.1100 point over the matter of large-scale incentives expectations from the ECB and possible cessation of Fed rate cuts if a clear trade agreement between the US and China is reached.

The price is below the middle Bollinger band, below SMA 5 and SMA 14. RSI is on the border of the oversold zone. Stoch in oversold territory again.

Trading recommendations: 
Sell the pair at its decline below 1.1100 with a probable target of 1.1025.

The euro-zone single currency fluctuated in a narrow, bullish range during the Asian session to see its 7th rebound in eleven sessions from the lowest since May 16, 2017 against the US dollar amid the lack of economic data from euro-denominated economies on the cusp of Economic developments and data expected on Thursday by the US economy, the largest economy in the world.

At 04:50 am GMT, the euro against the US dollar rose 0.11% to 1.1151 levels compared to the opening at 1.1139 after the pair reached its highest level during the trading session at 1.1152, while the lowest level at 1.1135.

Investors are now awaiting the US economy to unveil retail sales, which account for about half of consumer spending, which accounts for more than two-thirds of US GDP, which may reflect a slowdown in growth to 0.3% from 0.4% last June. The core index of growth stabilized at 0.4%, little changed from June.

This comes in conjunction with the release of the preliminary reading of the single labor cost index, which reflects a rise of 1.7% versus a decline of 1.6% in the first quarter, while the preliminary reading of the productivity of non-agricultural sectors may show slower growth to 1.4% compared to 3.4% in the first quarter, in conjunction with The release of the Claims Index which may show an increase of 3 thousand applications to 212 thousand applications during the week elapsed last Saturday.

Markets from the world's largest industrialized countries are also looking to reveal the Philadelphia Industrial Index, which may reflect a contraction of 10.1 vs. 21.8 in July, and the release of the New York Industrial Index, which may also show a contraction of 2.1 vs. 4.3 v. July, ahead of the release of the Industrial Production which may show a 0.1% growth versus the zero level in June.

In the same context, the energy utilization rate reading may show growth slowed to 77.8% vs. 77.9% in June, before the housing market data was released with the housing index released by the National Association of Home Builders which may reflect an upward trend. It stood at 66 vs. 65 in July, coinciding with the release of wholesale inventories which may show a slowdown in growth to 0.1% vs. 0.3% in May.

Technical Analysis

The EURUSD pair made negative trading yesterday evening, approaching our first awaited target of 1.1100, keeping the bearish scenario intact over intraday basis, noting that breaching the mentioned level will push the price to 1.1000 as the next major target.

Therefore, we will continue to favor the bearish bias for today, supported by negative pressure from SMA 50 unless the price pushes to breach 1.1180 - 1.1205 and hold above it.

Expected trading range for today is between 1.1050 support and 1.1200 resistance.

Expected trend for today: Bearish.

Cisco shares continue to decline after it managed to breach the support of 54.00 to complete the bearish path and reach the next support 51.28 which is trying to prevent the price from falling further.

The moving averages move above the price and form resistance levels and pressure it to drop.

Stochastic is heading to the oversold area so we are likely to see a breach of the support.

The general trend is to the downside.

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

At 02:29 AM GMT, the AUDUSD rose 0.46% to 0.6779 levels from opening levels of 0.6748, after the pair reached its highest level during the session at 0.6788, while the lowest level at 0.6746.

The Reserve Bank of Australia's Assistant Governor of the Risk Management Committee, Jay Diabel, spoke at the annual Risk Conference on “Risk to Expectations” in Sydney, before the Melbourne Institute's Consumer Expectations of Inflationary Pressures rose to 3.5% vs. 3.2% in July.

In addition to the disclosure of labor market data, which showed the stability of unemployment rates at 5.2%, little changed from last June, bringing the current reading in line with expectations, and this came with the reading of the change in employment index rose by 41.1 thousand vs. The 2.3K decline in June, beating expectations for a rise of about 14.2K.

On the other hand, markets are looking ahead to the US economy to reveal the retail sales figure, which accounts for about half of consumer spending, which accounts for more than two-thirds of US GDP, which may reflect slower growth to 0.3% vs. 0.4% in June, while The core reading of the index shows growth stabilizing at 0.4%, little changed from June.

This comes in conjunction with the release of the preliminary reading of the single labor cost index, which reflects a rise of 1.7% versus a decline of 1.6% in the first quarter, while the preliminary reading of the productivity of non-agricultural sectors may show slower growth to 1.4% compared to 3.4% in the first quarter, in conjunction with The release of the Claims Index which may show an increase of 3 thousand applications to 212 thousand applications during the week elapsed last Saturday.

Markets from the world's largest industrialized nations are also looking to reveal the Philadelphia Industrial Index, which may reflect a contraction to 10.1 vs. 21.8 in July, in conjunction with the release of the New York Industrial Index which may also reflect a contraction to 2.1 vs. 4.3 in July, before we see the release of the Industrial Production reading which may show 0.1% growth versus the zero level in June.

In the same context, the energy utilization rate reading may show growth slowed to 77.8% vs. 77.9% in June, before the housing market data was released with the housing index released by the National Association of Home Builders which may reflect an upward trend. It stood at 66 vs. 65 in July, coinciding with the release of wholesale inventories which may show a slowdown in growth to 0.1% vs. 0.3% in May.

Technical Analysis

AUDUSD has been trading sideways in recent sessions, holding steady below 0.6830, while Stochastic continues to provide negative signals on the daily time frame.

Therefore, the bearish scenario will remain valid during the coming sessions provided that it remains below 0.6830, noting that we are waiting to visit 0.6700 as the next major stop.

Expected trading range or today is between 0.6720 support and 0.6830 resistance.

Expected trend for today: Bearish.

The US dollar fluctuated in a narrow range, tilted lower during the Asian session, completing corrections after it rose more than one percent last Tuesday, showing its best daily performance since March 28, 2018 against the Japanese yen following the developments and economic data that followed from the economy. The Japanese economy is on the cusp of the economic developments and data expected on Thursday by the US economy.

At 05:50 am GMT, the USDJPY fell 0.01% to 105.90 levels from 105.91 opening levels, after hitting a session low of 105.73 and a high of 106.03.

The Japanese economy, the third largest industrial nation in the world, followed the release of the industrial sector data with the release of the final industrial production which showed that the decline decreased to 3.3% compared to the initial reading for the month of June and expectations of 3.6%, against a rise of 2.0% in May. Last year, as the annual reading of the same index showed the decline shrank to 3.8% from 4.1% in the previous annual initial reading.

On the other hand, investors are now awaiting the US economy to reveal the retail sales figure, which accounts for about half of consumer spending, which accounts for more than two-thirds of US GDP, which may reflect a slowdown in growth to 0.3% vs. 0.4% last June. A core reading of the index could show growth stabilizing at 0.4%, little changed from June.

This comes in conjunction with the release of the preliminary reading of the single labor cost index, which reflects a rise of 1.7% versus a decline of 1.6% in the first quarter, while the preliminary reading of the productivity of non-agricultural sectors may show slower growth to 1.4% compared to 3.4% in the first quarter, in conjunction with The release of the Claims Index which may show an increase of 3 thousand applications to 212 thousand applications during the week elapsed last Saturday.

Markets from the world's largest industrialized countries are also looking to reveal the Philadelphia Industrial Index, which may reflect a contraction of 10.1 vs. 21.8 in July, and the release of the New York Industrial Index, which may also show a contraction of 2.1 vs. 4.3 v. July, ahead of the release of the Industrial Production which may show a 0.1% growth versus the zero level in June.

In the same context, the energy utilization rate reading may show growth slowed to 77.8% vs. 77.9% in June, before the housing market data was released with the housing index released by the National Association of Home Builders which may reflect an upward trend. It stood at 66 vs. 65 in July, coinciding with the release of wholesale inventories which may show slowing growth to 0.1% vs. 0.3% in May.

The reversal of the yield curve on US bonds for the first time since 2007 and the contraction of the German economy, the largest economy of the euro area 0.1% in the second quarter, in addition to the National Bureau of Statistics of China for the annual reading of industrial production, which showed the lowest pace of growth since 2002 during Last July yesterday.

The Japanese yen, which investors use as a safe-haven in corrections to losses last Tuesday following the US Treasury's announcement to postpone the imposition of tariffs on US imports of some Chinese commodities, was allowed until December 15, renewing hopes for a breakthrough. Trade disputes between Washington and Beijing.

Technical Analysis

The USDJPY traded markedly negative yesterday after testing the 106.70 level, resuming the bearish main course, on its way to visit the recent low of 105.05 as the first stop.

Therefore, we hold onto our expectations for a bearish trend that requires stability below 106.70, noting that the next major target is 104.60.

Expected trading range for today is between 105.00 support and 106.60 resistance.

Expected trend for today: Bearish.

Gold futures fluctuated in a narrow uptrend range during the Asian session to witness the highest rise since August 13, when it tested the highest since April 12, 2013 amid the negative stability of the US dollar index, indicating a rebound for the second session of The highest since the fifth of this month, according to the inverse relationship between them on the eve of developments and economic data expected on Thursday from the US economy, the largest economy in the world.

Gold futures for December 15 rose 0.29% to trade at $ 1,513.10 an ounce, compared with the opening at $ 1,518.36 an ounce, amid the US dollar index down 0.02% to 97.93 compared to the opening at 97.95.

Investors are now awaiting the US economy to unveil retail sales, which account for about half of consumer spending, which accounts for more than two-thirds of US GDP, which may reflect a slowdown in growth to 0.3% from 0.4% last June. The core index of growth stabilized at 0.4%, little changed from June.

This comes in conjunction with the release of the preliminary reading of the single labor cost index, which reflects a rise of 1.7% versus a decline of 1.6% in the first quarter, while the preliminary reading of the productivity of non-agricultural sectors may show slower growth to 1.4% compared to 3.4% in the first quarter, in conjunction with The release of the Claims Index which may show an increase of 3 thousand applications to 212 thousand applications during the week elapsed last Saturday.

Markets from the world's largest industrialized countries are also looking to reveal the Philadelphia Industrial Index, which may reflect a contraction of 10.1 vs. 21.8 in July, and the release of the New York Industrial Index, which may also show a contraction of 2.1 vs. 4.3 v. July, ahead of the release of the Industrial Production which may show a 0.1% growth versus the zero level in June.

In the same context, the energy utilization rate reading may show growth slowed to 77.8% vs. 77.9% in June, before the housing market data was released with the housing index released by the National Association of Home Builders which may reflect an upward trend. It stood at 66 vs. 65 in July, coinciding with the release of wholesale inventories which may show a slowdown in growth to 0.1% vs. 0.3% in May.

Otherwise, on Wednesday we continued to break the yield on 10-year US Treasury securities for a short period of two-year treasury interest rates for the first time since 2007, reflecting a higher short-term, long-term yield on US Treasury funding. This raised concerns about a recession looming for the world's largest economy.

We also followed yesterday the contraction of the German economy, the euro zone's largest economy, by 0.1% in the second quarter. This came hours after the National Bureau of Statistics of China released the annual reading of industrial production, which showed the slowest pace of growth since 2002, with the slowdown in retail sales growth and high Unemployment last July, reinforcing investor concerns about the performance of the global economy in the shadow of trade protectionism.

It is noteworthy that the US Treasury announced last Tuesday to postpone the date of activating the imposition of customs tariffs 10% on US imports of some Chinese goods until December 15, which was supposed to enter into force early next month, commented US President Donald Trump At the time, the decision to postpone was aimed at boosting shopping in the Christmas season, while expressing that contacts with the Chinese side had been constructive recently.

Technical Analysis

The price of gold traded strongly yesterday to settle above the 1520.00 barrier now, reinforcing expectations for further gains in the coming period, awaiting a visit to the 1560.00 level, which is our next major target.

SMA 50 continues to support the expected bullish wave, taking into consideration that the breach of 1483.60 will stop the suggested rally and press the price for further bearish correction.

Expected trading range for today is between 1510.00 support and 1545.00 resistance.

Expected trend for today: Bullish.

EURUSD

The pair dropped below 1.1160 as a result of the risk of the German economy collapsing, and then the recession of the entire Eurozone. On account of the expansion of incentives from the ECB and uncertainty in the monetary policy of the Fed, the pair may continue its decline.

The price is below the middle Bollinger band, above the SMA 5, but below 14.  RSI is moving below 50%, trying to turn up. Stoch grow, coming out of the oversold zone.

Trading recommendations:

If the pair held below the level of 1.1160, it will continue its decline to 1.1100.

The US dollar fluctuated in a narrow range that tends to decline during the Asian session in corrections after it rose by more than one percent yesterday, showing the best daily performance since March 28, 2018 against the Japanese yen and comes amid the lack of economic data from the Japanese economy On the eve of economic developments and data expected on Wednesday by the US economy, the largest economy in the world.

At 05:58 AM GMT, USD / JPY fell 0.28% to 106.44 levels from 106.74 opening levels, after hitting a session low of 106.24 and a high of 106.77.

Investors are currently awaiting the US economy to reveal its import price index reading, which may reflect stability at zero levels against a decline of 0.9% in the previous reading for the month of June, while the annual reading of the same indicator may show the stability of the decline at 2.0%, little changed from What they were in June.

We should note that the disappointing Chinese data which followed at the beginning of the session allowed the yen, which investors adopt as a safe haven, to enter yesterday's corrective losses following the announcement of the US Treasury Department to postpone the date of activating the imposition of tariffs on American imports of some Chinese goods. December, renewing hopes of resolving trade disputes between Washington and Beijing.

Technical Analysis

The USDJPY rallied strongly yesterday to breach the 105.50 level and make an upward correction to the downside wave that started from 109.32 to 105.05, and note that the price found strong resistance at the 38.2% Fibonacci correction level at 106.70, starting to bounce lower from there, coinciding with the loss of the index Stochastic for positive momentum and reaching overbought areas.

Therefore, we believe that chances are available for resuming the main bearish trend, whose next key target is at 104.60, while a break above 106.70 represents the key to extend the corrective wave to reach 107.70 as the next stop.

Expected trading range for today is between 105.50 support and 107.00 resistance.

Expected trend for today: Overall bearish.

Aeroflot rebounded from 102.87 support and reached 107.25 resistance and managed to breach it to complete the bullish path to the next resistance level 110.85 which stopped the bullish move.

The price is moving under the positive pressure of the 7-20-50 moving averages that move below the price and form support levels.

Stochastic is within the oversold area and therefore exiting this area and holding the resistance will lead to a correction.

Overall trend: Bearish.

The Aussie fluctuated in a narrow, bearish range during the Asian session against the US Dollar following its economic developments and data on the Australian economy and amid the prospect of the Reserve Bank of Australia Assistant Governor in charge of Risk Management Committee Jay Debell taking part in a panel discussion at the Conference Forex markets in Sydney are on the threshold of economic developments and data expected on Wednesday by the largest US economy in the world.

At 03:31 am GMT, the AUDUSD fell 0.12% to 0.6791 levels from the opening levels of 0.6799, after the pair reached its lowest level during the session at 0.6778, while the highest level at 0.6809.

The Australian economy followed the release of the Wesbeck Consumer Confidence reading, which showed a 3.6% rise to 100.0 vs. 4.1% decline at 96.5 in July, before we saw the release of the wage price index which showed accelerated growth to 0.6 The figure was 0.5% compared to the previous quarter and 0.5%, while the annual reading of the same index showed stable growth of 2.3% in line with expectations.

On the other hand, the market is currently looking for the US economy to reveal the import price index, which may reflect stability at zero levels against a decline of 0.9% in the previous reading for the month of June, while the annual reading of the same indicator may show the stability of the decline at 2.0% below Little change from what it was in June.

Technical Analysis

AUDUSD stabilizes near 0.6830 and remains below it, noting that Stochastic is clearly losing its positive momentum and starting to provide a negative crossover signal, which supports the chances of resuming the expected bearish trend for the coming period, which depends on stability below the mentioned level. Regularly within the descending channel that appears in the picture, waiting for the initial target of 0.6700.

Expected trading range for today is between 0.6720 support and 0.6830 resistance.

Expected trend for today: Bearish.