Analytic reviews

The Australian dollar fluctuated in a tight range slipping towards the Asian session to see its rebound from its highest since July 4 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 Tuesday by the largest economy Including Federal Reserve Governor Jerome Powell and several members of the Federal Open Market Committee.

At 02:27 GMT, the Australian dollar was down 0.07% at 0.7034, compared with the opening levels of 0.7039, after reaching a low of 0.7033, while a two-week high of 0.7044.

Australian Bank of Australia (BOE) released the minutes of the Central Bank of Australia meeting held on April 2, during which the central bank's monetary policy makers approved a short-term benchmark interest rate cut of 25 basis points for the second straight session on To 1.00% from 1.25%, which was expected by market analysts at the time.

"The board will continue to monitor labor market developments closely and adjust monetary policy if necessary to support sustainable growth and inflation target over time," said the Bank of Australia Reserve Monetary Policy Minutes. "The low interest rates will provide more jobs for Australians and help make progress Or about the inflation target. "

On the other hand, investors are looking for Federal Reserve Vice President and Federal Open Market Committee member Michelle Bowman to make an opening remarks at the Federal Fed Hearing event in Atlanta before we see a reading of the import price index which could reflect a 0.7% 0.3% in May, and the same year's index may show a widening of the decline to 2.1% versus 1.5%.

This comes in conjunction with the disclosure by the US economy of reading retail sales, which account for about half of consumer spending, which accounts for more than two-thirds of US GDP, which may reflect slower growth to 0.1% versus 0.5% in May, as may appear reading Core for the same index slowed growth to 0.1% versus 0.5% in May.

Also, the world's largest industrial producer may see the Industrial Production Index reading, which may show a slowdown in growth to 0.1% from 0.4% in May, while the Energy Efficiency Index may show growth accelerating to 78.2% from 78.1% in May, Before we see the release of housing market data with the housing index reading released by the National Association of Home Builders, which may reflect stability at a value of 64 in June.

This comes in conjunction with the reading of wholesale stocks, which may show a slowdown in growth to 0.4% from 0.5% in April, with Federal Reserve Governor Jerome Powell delivering a speech entitled "Post-crisis monetary policy aspects" at the French G7 Presidency 2019 in Paris, before Federal Reserve Bank of Chicago President and Federal Committee member Charles Evans spoke at a CNN-ABC television interview.

Technical Analysis

AUD/USD is testing the 0.7044 level now and is still below it, accompanied by stochastic access to overbought areas, while the pair is expected to push the pair downwards to resume the main bearish trend, with its first target at 0.6900.

Therefore, we will keep our bearish outlook intact, provided that the pair maintains its stability below 0.7044, noting that breaching this level will turn the intraday and short term trend upside.

The trading range for today is among the key support at 0.6980 and resistance at 0.7080.

The general trend for today is bearish.

The US dollar fluctuated in a narrow range inclined to rise during the US session to see its rebound for the second session of its lowest since July 5 against the Japanese yen amid a lack of economic data earlier this week by the Japanese economy and on the eve of developments and economic data expected on Tuesday from Ahead of the US economy, the largest economy in the world, including Fed Chairman Jerome Powell and many members of the Federal Open Market Committee.

At 0610 GMT, the USDJPY rose 0.10% to 108.02 from the opening levels at 107.91, after reaching the highest level at 108.09, while the lowest at 107.82.

Investors are looking forward to Federal Reserve Vice Governor and Federal Open Market Committee member Michelle Bowman's opening remarks at the Federal Fed hearing in Atlanta before we see a reading of the import price index, which could reflect a 0.7% drop from 0.3%. May, as the annual reading of the index itself may show the widening decline to 2.1% versus 1.5%.

This comes in conjunction with the disclosure by the US economy of reading retail sales, which account for about half of consumer spending, which accounts for more than two-thirds of US GDP, which may reflect slower growth to 0.1% versus 0.5% in May, as may appear reading Core for the same index slowed growth to 0.1% versus 0.5% in May.

Also, the world's largest industrial producer may see the Industrial Production Index reading, which may show a slowdown in growth to 0.1% from 0.4% in May, while the Energy Efficiency Index may show accelerated growth to 78.2% versus 78.1%. To witness the release of housing market data with the housing index reading released by the National Association of Home Builders, which may reflect stability at a value of 64 in June.

This comes in conjunction with the reading of wholesale stocks, which may indicate a slowdown in growth to 0.4% from 0.5% in April, leading to Federal Reserve Governor Jerome Powell delivering a speech entitled "Post-crisis monetary policy aspects" at the French G7 Presidency 2019 in Paris, ahead of the talk of Chicago Reserve Bank President and Federal Committee member Charles Evans in an interview with CNN-BC.

Technical Analysis

USD/JPY is trading below 108.10, and negative pressure remains for the coming period, supported by SMA 50, awaiting a major 106.78.

Stochastic loses its positive momentum gradually to support the bearish outlook, which requires stability to remain below 108.10.

The trading range for today is expected among the key support at 107.30 and the resistance at 108.60.

The general trend for today is bearish.

NZDUSD

The pair is trading above the support level of 0.6710 against the backdrop of the growing inflation in New Zealand. The pair is supported by the positive second quarter GDP data in China and the expected reduction of interest rates in the US. The pair is expected to resume growth after a small correction.

The price is above the middle Bollinger band, above SMA 5 and SMA 14. RSI is below the overbought territory and is reversing downwards. Stoch indicate a pause in decline.

Trading recommendations:

Buy the pair as it’s correcting downwards if it remains above 0.6710 with a possibility to go up to 0.6780 and then further to 0.6800.

NZDUSD

The pair is trading at the resistance level of 0.6720 due to the expected weakness of the USD caused by the corrected downwards second quarter GDP forecasts and expected retail figures and volumes that are to be published this Tuesday. Moreover, the pair is supported by the predicted growth of consumer inflation in New Zealand, which also would be confirmed by tomorrow’s data.

The price is above the middle Bollinger band, above SMA 5 and SMA 14. RSI is below the overbought territory, Stoch are already there.

Trading recommendations:

Buy the pair after it goes above 0.6720 and takes hold there with a possibility to go further up to 0.6780 or even further to 0.6800.

USDCAD

The pair dropped below the support level of 1.3040 against the background of the local recovery of crude oil prices, as well as the Bank of Canada meeting that left the key interest rate unchanged and positively characterized the state of national economy.

The price is below the middle Bollinger band, below SMA 5 and SMA 14. RSI is below 50% and is falling. Stoch are entering the oversold territory.

Trading recommendations:

Sell the pair as it’s likely to drop to 1.2950.

AMAZON climbed above the resistance level of 1963.67 to reach the historic high of 2048.00 set in September last year.

The price is hovering above the moving averages 7-7 and 50 which form price support levels and pressure on it to rise and test the resistance again.

Stochastic is moving within the overbought area and there is a negative cross between its lines so we can see the price attempt to decline and test the support 1963.70.

The expected movement between 1891.80 support and 2050.79 resistance.

General direction of the movement: upward.

The Australian dollar rose against the US today, supported by continued gains in gold as well as pressure on the US currency as a result of speculation of a rate cut by the Federal Reserve.

In his testimony before the Senate Banking Committee, the head of the central bank stressed the existence of risks surrounding the local economy, most notably trade disputes.

President Donald Trump said China disappointed our hope after it failed to commit to agreed purchases of US agricultural products.

Government data showed Australia's inflation forecast fell by 3.2%, and the rate of household loans stabilized unchanged last month.

Investors are currently waiting for the US economy to release the Producer Price Index (PPI), a preliminary indicator of inflationary pressures, which could reflect a 0.1% growth rate unchanged from last May's reading. The growth rate was unchanged at 0.2%, unchanged from May.

In the same context, the PPI may slow growth to 1.6% from 1.8% in the previous annual reading for May, and the core annualized reading for the same index may show a slowdown in growth to 2.1% from 2.3% in May. Hours after inflation data was released last month, with the consumer price index reading released on Thursday surpassing expectations.

Otherwise, we also followed yesterday the second and last half of Federal Reserve Governor Jerome Powell's semi-annual testimony before the Senate Banking Committee, hours after he gave his first half of his testimony to the House Financial Services Committee last Wednesday, completing his half- Annual policy on monetary policy before the US Congress.

We note that Powell's testimony has reinforced market speculation that Fed monetary policy makers will cut federal funds at the Federal Open Market Committee meeting scheduled for July 30-31, Minutes of the Fed's latest meeting, which in turn supported cuts in interest rates by 25 basis points by the end of the month.

Technical Analysis

The AUDUSD is slightly bullish to approach the resistance of the descending channel, where the price is positively affected by Stochastic, but since the price is below 0.7044, our bearish outlook remains valid for the coming period as breaching this level will push the price higher Of the short term bullish correction, while the next main target for the expected bearish wave is at 0.6900.

The trading range for today is expected among the support at 0.6930 and the resistance at 0.7044.

The general trend for today is bearish.

The single currency of the European Union region fluctuated in a narrowly bullish range during the Asian session as it rebounded to its fourth session since June 19 and was preparing for its first weekly gain of three weeks against the US dollar on the eve of economic developments and data expected on Friday by The economies of the euro area and the US economy are the largest economy in the world.

At 05:09 am GMT, the EURUSD rose 0.16% to 1.1272, compared to the opening at 1.1254 after the pair hit a session high of 1.1274 and the lowest at 1.1249.

The markets are currently looking for Germany, the largest economy in the euro area, to see the wholesale price index reading, which may reflect a slowdown in growth to 0.2% from 0.3% in May before we see the Eurozone economies as a whole showing the seasonally adjusted Industrial Production Index Which could reflect a 0.2% rise versus a 0.5% drop in April.

This comes in conjunction with the meetings of finance ministers of the Euro-zone ECOFIN in Brussels attended by finance ministers of the member countries of the euro area, which discuss many financial issues such as mechanisms to support the euro and government funding, and we would like to point out that these meetings are closed and the media are not allowed to transfer, They returned with interviews with the media throughout the day.

On the other hand, investors are currently waiting for the US economy to disclose the reading of the PPI, which is a preliminary index of inflationary pressures, which may reflect the stability of growth at 0.1%, unchanged from what it was in the previous reading for the month of May, and may appear The core reading of the index itself was 0.2% growth, unchanged from May.

In the same context, the PPI may slow growth to 1.6% from 1.8% in the previous annual reading for May, and the core annualized reading for the same index may show a slowdown in growth to 2.1% from 2.3% in May. Hours after inflation data was released last month, with the consumer price index reading released on Thursday surpassing expectations.

Technical Analysis

The EURUSD ended yesterday's trading without the support of the ascending channel, but it starts today with a new upward trend in an attempt to return to this channel, where it gets a positive stimulus from Stochastic, which supports the chances of continuing to rise during the coming sessions, noting that the breach of 1.1275 The price will push for gains starting at 1.1350 and extending to 1.1443.

Therefore, we will continue to tilt the upside for the next period unless the 1.1245 level is broken and stability below it.

The trading range for today is expected between 1.1200 and 1.1360 support.

The general trend for today is bullish.

Gold futures rallied to resume their daily gains rallied yesterday after testing the highest since June 25, when it tested its highest since May 14, 2013 and is poised to resume its weekly gains and gain its seventh weekly gain in eight weeks amid a rebound The dollar index for the fourth session of the highest since June 19 according to the inverse relationship between them on the eve of developments and economic data expected Friday by the Chinese economy and his counterpart the US economy.

Gold futures for August delivery rose 0.25% to currently trade at $ 1,409.70 per ounce from the opening at $ 1,406.20 an ounce, amid the US dollar index falling 0.11% to 96.97 compared to the opening at 97.08.

The markets are now looking at the Chinese economy, the world's largest metal consumer and the second largest economy in the world after the United States, to release trade data last month with the trade balance index released by China's General Administration of Customs, which could reflect a contraction of the surplus to 276 billion yuan Which is equivalent to $ 45.2 billion compared to 279 billion yuan, or $ 41.7 billion in May.

In the same vein, we followed Thursday the US President Donald Trump, through his Twitter through his official account on Twitter, expressed his country's disappointment with China, which did not meet the size of China. Procurement of US agricultural products promised earlier in the month.

On the other hand, the Chinese Ministry of Commerce yesterday also expressed Beijing's hopes that Washington will remove the restrictions on Huawei soon, explaining that both parties are trying to implement the commitments agreed by Chinese President Shi Jingping and his US counterpart during the events of the last G20, Talks on trade talks have yet to be discussed and China has been consistent in addressing its fundamental concerns.

On the other hand, investors are currently waiting for the US economy to disclose the reading of the PPI, which is a preliminary index of inflationary pressures, which may reflect the stability of growth at 0.1%, unchanged from what it was in the previous reading for the month of May, and may appear The core reading of the index itself was 0.2% growth, unchanged from May.

In the same context, the PPI may slow growth to 1.6% from 1.8% in the previous annual reading for May, and the core annualized reading for the same index may show a slowdown in growth to 2.1% from 2.3% in May. Hours after inflation data was released last month, with the consumer price index reading released on Thursday surpassing expectations.

Otherwise, we also followed yesterday the second and last half of Federal Reserve Governor Jerome Powell's semi-annual testimony before the Senate Banking Committee, hours after he gave his first half of his testimony to the House Financial Services Committee last Wednesday, completing his half- Annual policy on monetary policy before the US Congress.

We note that Powell's testimony has reinforced market speculation that Fed monetary policy makers will cut federal funds at the Federal Open Market Committee meeting scheduled for July 30-31, Minutes of the Fed's latest meeting, which in turn supported cuts in interest rates by 25 basis points by the end of the month.

Technical Analysis

The price of gold traded negatively yesterday to test the pivotal support at 1400.30, as it maintained its stability above it, noting that Stochastic is providing a positive cross signal now, waiting for the price to resume the expected bullish trend for the coming period, which has its first target at 1438.90.

Therefore, we will continue to tilt the upside move for today, unless the level of 1400.30 is broken and the daily closing below it.

The trading range for today is among the key support at 1390.00 and resistance at 1430.00.

The general trend for today is bullish.

The US dollar fluctuated in a narrow range slipping into the US session to see its rebound for the second session in three sessions of its highest since May 31 against the Japanese yen following developments and economic data that followed the Japanese economy, the third largest economy in the world and on the eve of developments and data Economic outlook on Friday by the US economy, the world's largest economy.

At 05:59 GMT, the pair dropped 0.16% to 108.33 from the opening level at 108.50, after reaching a session low of 108.29 and a high of 108.61.

We followed the Japanese economy, the world's third-largest industrial country, to release industrial data with the final reading of industrial production, which showed growth slowed to 2.0% from May's preliminary reading and expectations of 2.3% versus 0.6% in April, While the annual reading of the same index showed a widening of the decline to 2.1% compared to 1.8%, and the reading of the rate of energy utilization accelerated growth to 1.7% compared to 1.6%.

On the other hand, investors are currently waiting for the US economy to disclose the reading of the PPI, which is a preliminary index of inflationary pressures, which may reflect the stability of growth at 0.1%, unchanged from what it was in the previous reading for the month of May, and may appear The core reading of the index itself was 0.2% growth, unchanged from May.

In the same context, the PPI may slow growth to 1.6% from 1.8% in the previous annual reading for May, and the core annualized reading for the same index may show a slowdown in growth to 2.1% from 2.3% in May. Hours after inflation data was released last month, with the consumer price index reading released on Thursday surpassing expectations.

Otherwise, we also followed yesterday the second and last half of Federal Reserve Governor Jerome Powell's semi-annual testimony before the Senate Banking Committee, hours after he gave his first half of his testimony to the House Financial Services Committee last Wednesday, completing his half- Annual policy on monetary policy before the US Congress.

We note that Powell's testimony has reinforced market speculation that Fed monetary policy makers will cut federal funds at the Federal Open Market Committee meeting scheduled for July 30-31, Minutes of the Fed's latest meeting, which in turn supported cuts in interest rates by 25 basis points by the end of the month.

Technical Analysis

The USD/JPY pair made a positive move yesterday to move above 108.10 to signal the price attempt to return to the upside correction, but we see that Stochastic is showing negative signs now, which could push the pair lower again.

Therefore, the contradiction between the technical factors makes us prefer to stop on the neutral temporarily until we get a clearer indication of the next direction, which we will get through the breach of the resistance 108.93 or break the support 108.10, noting that the breach of this resistance will push the price for further upward correction Which has the next target at 109.60, while breaking the support will press the price to resume the main downside trend targeting 106.78 mainly.

The trading range for today is among the key support at 107.60 and resistance at 109.10.

The expected general trend for today: neutral.