Analytic reviews

The single currency of the European Union region fluctuated in a narrowly bullish range during the Asian session to reflect its rebound for the third straight session since May 16, 2017 against the US dollar on the eve of developments and economic data expected Monday by Eurozone economies The US economy is the largest economy in the world.

At 0513 GMT, the EURUSD rose 0.18% to 1.1128, compared to the opening at 1.1109, after reaching a high of 1.1133, while reaching a low of 1.1105.

The markets are looking for Spain, the fourth-largest economy in the euro area, to reveal the PMI service index, which may show the stability of the widening at 53.6 unchanged from last June, before seeing the same indicator of Italy's third largest Economies of the region, which may reflect a widening to 50.6 versus 50.5 in June.

Investors are also looking for France, the second-largest economy in the euro area, to reveal the final reading of the PMI index, which may show the stability of the widening at 52.2 unchanged from the previous reading of the previous month, compared to 52.9 in June, before the final reading of the same index of Germany's largest The economies of the region, which may also show the stability of the widening at 55.4, is little changed from the previous reading, compared to 55.8.

Leading to the release of the final reading of the euro zone PMI which may show the stability of the widening at 53.3, unchanged from the previous reading, and from 53.6 in June, before we also see the Euro Zone economy as a whole, Consumer spending, which showed a contraction of 6.9 to 5.8 in July.

On the other hand, investors are currently waiting for the US economy to release the final index of the Institute of Supply of Service by Markit for the United States, which may reflect the stability of the widening at 52.2, unchanged from the preliminary reading for July and compared to 51.5 in June, before the disclosure From the Institute of Supply Service Index, which may show a breadth of 55.5 vs. 55.1 in June.

US President Donald Trump said last Friday that a trade agreement with the European Union had been signed that would increase US meat exports to EU countries. The move would contribute to reducing the extent of damage to agricultural activity. The United States, as a result of the trade war waged by his administration with China.

Technical Analysis

The EUR / USD pair is trading positively on its way towards a possible test of pivotal resistance 1.1180 and is moving steadily within the bearish intraday channel shown in the image, noting that SMA 50 meets the mentioned resistance to add more strength to it, Now, awaiting a bounce back to the 1.1000 test initially.

Therefore, we will maintain our bearish outlook for stability below 1.1180, with the reminder that breaking the 1.1000 will extend the downside wave to 1.0857 as the next major station.

The trading range for today is expected between 1.1030 and 1.1200 support

The general trend for today is bearish.

USDJPY

The pair is trading at the level of 106.00 due to the escalating US-China trade war as the Chinese authorities allowed the yuan to weaken. A decrease in investors’ risk appetite against this background may lead to further drop of the pair.

The price is below the middle Bollinger band, below EMA 5, but below SMA 14. RSI is in the oversold zone and continues to drop. Stoch are also in this zone and uninformative.

Trading recommendations: 

If the pair holds below the level of 106.00 as investors shy away from risks, it will lead to a further decline in the price to 105.00.

Gold futures fell during the Asian session to rebound from the highest since May 9, 2013 amid the rise of the dollar index, adding stability near the top in two years according to the inverse relationship between them on the eve of developments and economic data expected Friday from the US economy The world's largest economy.

Gold futures for December delivery fell 1.00% to currently trade at $ 1,434.50 per ounce compared to the opening at $ 1,445.57 an ounce, with the US dollar rising 0.02% to 98.43 compared to the opening at 98.41.

Investors are currently looking for the US economy to reveal last month's labor market data, which could reflect a drop in unemployment to a 49-year low of 3.6% from 3.7% in June, while the Non-Farm Payrolls Job creation to 164 thousand against 224 thousand, and may read the index of average income per hour growth stability of 0.2%.

This comes ahead of the release of the trade balance, which may reflect a contraction of the deficit to $ 54.2 billion from $ 55.5 billion in May, and before the factory orders reading, which may show a 0.6% rise versus a 0.7% drop in May, With the final reading of the University of Michigan Consumer Confidence Index extending to 98.5 from July's preliminary reading of 98.4 versus 98.2 in June.

In addition, Thursday we were surprised by President Donald Trump's decision to impose a 10% tariff on Chinese goods and goods to China worth $ 300 billion. The resolution will come into force at the beginning of September. Implementation will coincide with a new round of US-China trade talks in Washington.

The last two rounds of trade negotiations between the United States and China in Shanghai were followed last Wednesday by China's official Xinhua news agency. The two sides conducted "frank and effective in-depth exchanges," while the White House also said Wednesday that the two sides discussed issues such as transfer Forced technology and intellectual property rights as well as non-tariff and agricultural services and barriers.

In another context, we also followed Wednesday the Federal Open Market Committee's decision to cut the federal funds rate by 25 basis points for the first time in more than a decade, which was expected in the markets. Federal Reserve Governor Jerome Powell said during the press conference Which was held after the expiry of the meetings of the recent Federal Committee that the decision came in view of the "global developments" and "weakening inflation".

Technical Analysis

The price of gold gained strongly yesterday, starting today with a bearish slope after approaching the 1450.00 level to test the support floor formed at 1430.00 after breaching it in advance, awaiting the resumption of the bullish trend during the coming sessions, which extends to 1500.00 after exceeding 1450.00.

Thus, the bullish trend will be expected over the short and short term unless the level of 1410.90 is broken and stability below it.

The trading range for today is expected among the support at 1410.00 and resistance at 1450.00

The general trend for today is bullish.

The single currency of the European Union region fluctuated in a narrowly bearish range during the Asian session, making its third straight weekly loss as it stabilized near its lowest level in more than two years against the US dollar on the brink of developments and economic data expected Friday by Eurozone economies The US economy is the largest economy in the world.

At 05:21 am GMT, the EURUSD fell 0.06% to 1.1078, compared to the opening at 1.1085, after recording a low of 1.1070 and a high of 1.1097.

The markets are looking to release labor market data for Spain, the fourth-largest economy in the euro area, with the Unemployment Change Index reading, which may reflect a contraction of the decline to 21.4K from 63.8K in June before we see data from Italy's manufacturing sector, the third largest economy With the industrial production reading reading, which could show a 0.4% drop from 0.9% in May.

Italy may also see the release of retail sales, which may show a 0.4% rise from 0.7% in May, in conjunction with the release of the same indicator for the whole euro zone, which could show a rise of 0.3% versus 0.3%, and a reading of Producer prices for the region as a whole, which may reflect the contraction of the contraction to 0.4% from 0.1% in May, while the annual reading of the index may show a slowdown in growth to 0.8% versus 1.6%.

On the other hand, investors are currently looking for the US economy to reveal labor market data for the last month, which could reflect a drop in unemployment rates to a 49-year low of 3.6% versus 3.7% in June, while the change in jobs for sectors The pace of job creation slowed to 164,000 from 224,000, and the average hourly earnings index may show a 0.2% growth rate.

This comes ahead of the release of the trade balance, which may reflect a contraction of the deficit to $ 54.2 billion from $ 55.5 billion in May, and before the factory orders reading, which may show a 0.6% rise versus a 0.7% drop in May, With the final reading of the University of Michigan Consumer Confidence Index extending to 98.5 from July's preliminary reading of 98.4 versus 98.2 in June.

The Federal Open Market Committee on Wednesday approved a federal funds rate cut of 25 basis points for the first time in more than a decade, which was expected in the markets. Federal Reserve Governor Jerome Powell said during his press conference after the end of the events The meeting of the Federal Committee because the decision came in view of the "global developments" and "weakening inflation".

Technical Analysis

The EUR / USD pair did not show any strong movement yesterday and continues to fluctuate around support for the bearish intraday channel shown in the picture. As long as the price is below 1.1180, our bearish outlook remains valid for today, supported by the negative pressure formed by SMA 50, Our next targets start at 1.1000 and extend to 1.0857 after exceeding the previous level.

The trading range for today is among the key support at 1.0950 and resistance at 1.1140

The general trend for today is bearish.

The Australian dollar fluctuated in a narrow bullish range during the Asian session to see its rebound to its second-lowest session since January 3 against the US dollar following developments and economic data that followed it on the Australian economy and on the eve of economic developments and data expected on Friday by the economy The largest economy in the world.

At 04:48 GMT, the AUDUSD rose 0.15% to 0.6810, compared to the opening levels of 0.6800, after reaching a high of 0.6796, while the seven-month low reached 0.6819.

We followed the Australian economy reading the Retail Sales Index, which showed growth accelerated to 0.4% from 0.1% in May, beating expectations for a 0.3% growth rate. This coincided with the release of inflation data, Producers, which is a preliminary indicator of inflationary pressures, which showed a stable growth of 0.4%, not changed significantly from the first quarter last, contrary to expectations at 0.2%.

On the other hand, investors are currently looking for the US economy to reveal labor market data for the last month, which could reflect a drop in unemployment rates to a 49-year low of 3.6% versus 3.7% in June, while the change in jobs for sectors The pace of job creation slowed to 164,000 from 224,000, and the average hourly earnings index may show a 0.2% growth rate.

This comes ahead of the release of the trade balance, which may reflect a contraction of the deficit to $ 54.2 billion from $ 55.5 billion in May, and before the factory orders reading, which may show a 0.6% rise versus a 0.7% drop in May, With the final reading of the University of Michigan Consumer Confidence Index extending to 98.5 from July's preliminary reading of 98.4 versus 98.2 in June.

Technical Analysis

AUDUSD was able to break the 0.6830 level and close the daily candlestick below it, supporting expectations that the bearish trend will continue in the coming sessions, paving the way towards 0.6700 which is our next main target.

We note that stability below 0.6830 is important for the continuation of the expected decline as breaching it will push the price to start recovery attempts targeting 0.6890 areas and may extend to 0.6975 before any new attempt to decline.

The trading range for today is expected among the support at 0.6740 and the resistance at 0.6840

The general trend for today is bearish.

AMAZON  dropped under  the support levels of 1953.11-1885.01, close to the minimum of the ascending channel in which it trades.

The move is under the moving averages 20 and 50 which turned into resistance to the price and pressure it to decline and test the support 1828.80.

Stochastic is moving sideways within the oversold area so it is possible to choose the supported support within the zone.

The expected movement between 1828.80 support and 2034.12 resistance

General direction of the movement: upward.

The US dollar fluctuated in a tight range slipping into the US session to see its rebound for the second consecutive session from its highest since late May, showing its lowest since June 25, when it tested its lowest since January 3 in front of Following the economic developments and data that followed on the Japanese economy and on the eve of economic developments and data expected on Friday by the US economy.

At 05:59 GMT, the USDJPY dropped 0.20% to 107.12 from the opening levels at 107.34, after reaching the lowest level since June 25 at 106.85, while the highest in the trading session Session at 107.57.

We followed the Japanese economy to reveal the annual reading of the Bank of Japan's monetary base index, which showed a slowdown in growth to 3.7% from 4.0% last June, worse than expectations of slowing growth to 3.8%. The Japanese Central Bank has started using this indicator as its main operational target for the monetary base scheme since April 2013.

This came in conjunction with the minutes of the BoJ meeting held on July 30, in which the Bank of Japan's monetary policy makers agreed to keep interest rates at 0.10%, maintain the asset purchase program unchanged and future interest rate trends, Which was expected in the markets, with the disclosure at the time of the statement of monetary policy, which said the Bank of Japan lowered its forecast for inflation and growth.

On the other hand, investors are currently looking for the US economy to reveal labor market data for the last month, which could reflect a drop in unemployment rates to a 49-year low of 3.6% versus 3.7% in June, while the change in jobs for sectors The pace of job creation slowed to 164,000 from 224,000, and the average hourly earnings index may show a 0.2% growth rate.

This comes ahead of the release of the trade balance, which may reflect a contraction of the deficit to $ 54.2 billion from $ 55.5 billion in May, and before the factory orders reading, which may show a 0.6% rise versus a 0.7% drop in May, With the final reading of the University of Michigan Consumer Confidence Index extending to 98.5 from July's preliminary reading of 98.4 versus 98.2 in June.

The Federal Open Market Committee on Wednesday approved a federal funds rate cut of 25 basis points for the first time in more than a decade, which was expected in the markets. Federal Reserve Governor Jerome Powell said during his press conference after the end of the events The meeting of the Federal Committee because the decision came in view of the "global developments" and "weakening inflation".

Technical Analysis

The USD / JPY pair was subjected to strong negative pressure yesterday, pushing the pair to reach the previously recorded low of 106.78, stopping the suggested bullish correction scenario in our recent reports and pressuring the pair to achieve further bearishness in the coming period, noting that breaking the mentioned level will extend the downside wave To reach 105.65.

Therefore, the bearish trend will be likely in the coming sessions unless the 108.10 level is breached and stability above it.

The trading range for today is expected among the support at 106.00 and the resistance at 107.60

The general trend for today is bearish.

EURUSD

The pair stopped above the level of 1.1070, pending the publication of the employment data in the US. If they indicate a noticeable growth, the pair will resume dropping. Meanwhile, negative values will lead to the continuation of its local recovery.

The price is below the middle Bollinger band, above EMA 5, but below SMA 14. RSI is below the level of 50% and is moving horizontally. Stoch has entered the overbought zone.

Trading recommendations:

Act based on statistics. In the positive scenario, sell the pair with a probable target of 1.0975. If the figures are weak, buy with a probable growth to 1.1160.

Cisco shares fell over the past two weeks after failing to break through 58.20 resistance to bounce back and break above 57.16 support and approaching support at 54.00

The moving averages are moving above the price and are forming resistance levels and pressure on it to decline.

Stochastic in the oversold area is therefore likely to see some correction on the price and resistance towards resistance levels and 55.93-57.00 levels.

The general trend of the movement is neutral.

The single currency of the European Union region fell during the Asian session to its lowest level since May 16, 2017 against the US dollar on the eve of developments and economic data expected Thursday by eurozone economies and the US economy, the world's largest economy. / July for losses that stopped in June for the first time in five months.

At 05:02 GMT, the EURUSD fell 0.21% to 1.1053 compared to the opening at 1.1076, after hitting a two-year low of 1.1034, while reaching a high of 1.1082.

The markets are looking to release industrial data from Spain, the fourth-largest economy in the euro area, as the Industrial PMI is released, which may reflect contraction of the contraction to 48.1 from 47.9 in June before seeing the same indicator for Italy's third largest The region's economies, which may reflect the contraction of the contraction to 48.0 versus 48.4 in June.

This comes before we see the final reading of the PMI for France, the second largest economy of the euro zone and Germany, the largest economy in the region as well as the economies of the euro zone as a whole, which may reflect the stability of the expansion at 50.0 in France compared to 51.9 in June, 43.1 in Germany versus 45.0 in June, and the contraction of 46.4 in the region as a whole against 47.6.

On the other hand, investors are currently looking for the US economy to release the Jobless Claims reading for the week ending July 27, which could reflect a 6K increase to 212K before we see the final reading of the Industrial PMI by Marquette From the US, which may reflect the stability of the widening at 50.0, unchanged from the previous reading of the previous month and against 50.6 in June.

Leading to the disclosure by the largest industrialized country of the index of the Industrial Supply Institute index, which may show a widening to 52.0 compared to 51.7 in June, while the same index may indicate the price index contraction contraction to 49.1 compared to 47.9, in conjunction with The construction spending index, which reflects a rise of 0.5% versus 0.8%.

This came hours after the Federal Open Market Committee decided to cut the federal funds rate by 25 basis points for the first time in more than a decade, which was expected in the markets, Federal Reserve Governor Jerome Powell during his press conference after the expiration The fact that the decision was made in view of "global developments" and "inflation" is the subject of the meeting of the Federal Commission.

In the same context, Federal Reserve Governor Paul said that the committee's decision at the July 30-31 meeting to cut interest rates to between 2.00% and 2.25% "was not the beginning of a long series of interest rate cuts." To global risk insurance and that it is not necessarily one-time only, reflecting that the course of monetary policy in the future will depend on the impact of global economic data on the performance of the economy.

Technical Analysis

EURUSD managed to confirm the breach of 1.1100 yesterday, and starts further bearish towards the next target of 1.1000, reinforcing expectations for a continuation of the bearish trend in the coming period, noting that exceeding this level will push the price to visit 1.0857 as the next major station .

Therefore, we are waiting for further downside over intraday and short term unless the 1.1180 level is breached and stability above it

The trading range for today is expected among the support at 1.0950 and the resistance at 1.1100

The general trend for today is bearish.