Analytic reviews

Gold futures fell during the Asian session to rebound to its second highest session since April 19, 2018, as the dollar index rose for the first time in three sessions, rebounding to its second low since March 26 according to the inverse relationship In the wake of developments and economic data that followed the Chinese economy, the largest consumer of metals globally and on the brink of developments and economic data expected on Monday by the US economy, the largest economy in the world.

Gold futures for August delivery fell 0.59% to currently trade at $ 1,333.30 per ounce from the opening price of $ 1,341.20 an ounce. Gold futures closed at 1,346.10 last week. $ / Troy ounce. The US dollar index rose 0.11% to 96.75 from the opening at 96.65.

We have followed the Chinese economy, the second largest economy in the world and the second largest industrial nation after the United States, the General Administration of Customs released a reading of the trade balance index, which showed a surplus of 279 billion yuan, or 41.7 billion yuan, compared with 94 billion yuan ($ 13.8 billion) in April, beating expectations that the surplus would widen to 136 billion yuan ($ 23.2 billion).

In the same context, China's General Administration of Customs data showed last month that the annualized rise in the index of exports rose 1.1% compared to a decline of 2.7% in the annual reading for April, in contrast to the expectations of the widening of the decline to 3.9%, while the annual reading of imports decreased 8.5% Compared to a 4.0% rise in the previous year's reading, worse than the 3.5% drop.

On the other hand, investors expect the US economy to publish a statistical reading of employment opportunities and job turnover, which may reflect a rise to 7.50 million versus 7.49 million in March, coming hours after the disclosure of labor market data at the end of last week, which showed stability rates Unemployment at its lowest level in 49 years at 3.6% was little changed from April, in line with expectations.

In the same context, we also followed last Friday's reading of the Non-Farm Employment Change Index showed a slowdown in job creation to 75,000 added jobs, compared to 224,000 jobs added in April, while the average income per hour showed stable growth at 0.2%, unchanged from April, in contrast to expectations of a 0.3% growth rate.

The slower-than-expected job creation last month bolstered opportunities for a near-cut in Fed interest rates, especially after Fed Governor Jerome Powell said last Tuesday that the Fed would act appropriately to maintain a 2% growth rate and unemployment rates Low in America, saying he was closely watching the impact of trade tensions on the world's largest economy.

Technical Analysis

 The price of gold touched our main target at 1346.70, but found strong resistance there, which forced it to retreat significantly, to start a bearish correction for the recent bullish wave, and may be forced to some temporary decline and test the 1320.00 areas before resuming the bullish trend again.

Overall, we expect the overall bullish trend to continue for the upcoming sessions, and the breach of 1346.70 will open the way towards 1365.25 as the next major stop, while a break of 1320.30 will send the corrective correction to 1302.60 before any fresh attempt to rally.

The trading range for today is among the support at 1320.00 and resistance at 1350.00.

The general trend expected for today: Overall bullish.

EURUSD

The pair is correcting downwards after Friday’s strong growth due to extremely weak new jobs data in the US, as well as the weekend in Germany. In all likelihood, the correctional decline will continue until the US job openings data is published today.

The price is above the middle Bollinger band, below SMA 5, but still above SMA 14. RSI is above the level o f 50% and is moving down. Stoch have reversed downwards.

Trading recommendations:

Sell the pair after it takes hold below 1.1300 with a possible local target of 1.1265, which would correspond to a 23% decline according to Fibonacci retracement.

The Australian dollar fluctuated in a narrowly bullish range during the Asian session to see its eighth session rebound in 12 sessions from its lowest since May 17 when it tested its lowest since January 3 against the US dollar following economic developments and data Which followed on the Australian economy and on the eve of developments and economic data expected Friday by the US economy.

At 02:45 GMT, the AUDUSD rose 0.04% to 0.6980, the pair's highest level during the session, compared with the opening levels at 0.6977, while the pair reached a low of 0.6972.

We followed the Australian economy by reading the Australian Industrial Group's manufacturing index, which showed a contraction of 40.4 versus 2.6 in April, before we saw housing market data released with the Home Loan Index reading showing contraction Fell to 1.2% from 2.3% last March, in contrast to expectations of a 0.2% drop.

On the other hand, investors are looking for the US economy to reveal labor market data, which may show the stability of the unemployment rate at its lowest level in 49 years at 3.6%, unchanged from the previous reading for the month of April, amid expectations that reflect The median hourly income index accelerated the pace of growth to 0.3% versus 0.2% in April.

This is in line with the release of the Non-Farm Employment Change Index, which may indicate a slower pace of job creation to 180,000 added jobs versus 263,000 jobs in April and before we see the final reading of the Wholesale Inventories Index, 0.7%, unchanged from April's preliminary reading and 0.1% lower than in March.

Technical Analysis

AUDUSD fell against the USD in recent trading on the intraday basis, and is also exposing itself to the 50-day SMA at the intraday level, thus announcing the continuation of the short-term downside correction, amid negative signs of RSI.

Therefore, our expectations are for further bearish correction for the pair to trade at the intraday level, targeting the first support at 0.6962. If breaching this level, the negative pressure will increase to open further downside, targeting the support level at 0.6937.

The general trend for today is bearish.

The single currency of the European Union region fluctuated in a narrowly bearish range during the Asian session to see a rebound

To the second session of the highest since April 17 against the US dollar on the eve of developments and economic data expected on Friday by the economies of the euro zone and the US economy, the largest economy in the world.

At 04:51 GMT, the EURUSD dropped 0.06% to 1.1269, compared to the opening at 1.1276, after reaching a low of 1.1266, while reaching a high of 1.1281.

The markets are currently looking ahead to Germany's biggest economy, the seasonally adjusted Industrial Production Index, which could reflect a 0.4% drop from 0.5% in March, while the seasonally adjusted annualized reading for the same index may show a contraction of 0.4% 0.9% in the previous annual reading for the month of March.

This coincides with the current account reading and Germany's trade balance reading, which may show a contraction of the surplus to 18.7 billion euros from 20.0 billion euros in March, amid expectations that the revised German exports will reverse 0.9% from 1.5% The revised German imports also showed a 0.2% drop from 0.4% in March.

Ahead of France's second-largest economy, the Industrial Production Index, which could rise 0.3% from 0.9% in March, as France's trade balance was released, which could show a contraction of the deficit to 4.9 billion euros from 5.3 Billion euros in March, leading to the release of retail sales for Italy, the third-largest economy in the region, which could show a 0.2% rise from 0.2% in March.

This comes hours after the end of the ECB meeting, in which it was decided to keep interest rates at zero levels and stabilize the marginal lending rate at 0.25%, while maintaining a negative interest rate of -0.40% before we witness the press conference of the Bank's Governor European Central Bank President Mario Draghi, who noted that the European Central Bank is ready to cut interest rates to boost economic growth in the region.

Draghi also said that the ECB is ready to adopt a new monetary stimulus in the purchase of bonds to support economic growth in the euro area, adding that these actions come at a time of increasing uncertainty about trade disputes and their effects on the global economy, adding that the European Central Is ready to use all means and instruments available to it to drive economic growth and revive exports and European industry.

On the other hand, investors are looking for the US economy to reveal labor market data, which may show the stability of the unemployment rate at its lowest level in 49 years at 3.6%, unchanged from the previous reading for the month of April, amid expectations that reflect The median hourly income index accelerated the pace of growth to 0.3% versus 0.2% in April.

This is in line with the release of the Non-Farm Employment Change Index, which may indicate a slower pace of job creation to 180,000 added jobs versus 263,000 jobs in April and before we see the final reading of the Wholesale Inventories Index, 0.7%, unchanged from April's preliminary reading and 0.1% lower than in March

Technical Analysis

EURUSD is floating in a short term trend line, and has dropped in recent trading on the intraday basis, after the important resistance level of 1.1300 has stabilized to try to gain a positive momentum that could help it recover and rise again and look for a bullish bottom based on it to start this rise . The RSI of overbought areas is overbought compared to the price movement, suggesting a positive divergence with the Stochastic indicator, with positive support for SMA 50 for intraday basis.

Therefore, we expect the pair to rise again in the next trading session, to attack the resistance level of 1.1300 again, and if breached this level will open the way for further gains, to target immediately after the resistance level 1.1335, and to confirm this scenario the level of support 1.1250.

The general trend for today is bullish.

Gold futures traded in a tight range slipping during the Asian session as the US dollar index rose on the back of the economic outlook on Friday by the world's largest economy and the outlook for developments in Washington, And Mexico on trade and immigration.

Gold futures for August delivery fell 0.18% to currently trade at $ 1,337.30 per ounce from the opening at $ 1,339.70 per ounce. The US dollar index rose 0.05% to 97.07 from the opening at 97.01. .

Investors in the US economy are eyeing labor market data, which could show a 49-year low of 3.6% in the year, unchanged from last April's reading, Average hourly earnings accelerated to 0.3% versus 0.2% in April.

This is in line with the release of the Non-Farm Employment Change Index, which may indicate a slower pace of job creation to 180,000 added jobs versus 263,000 jobs in April and before we see the final reading of the Wholesale Inventories Index, 0.7%, unchanged from April's preliminary reading and 0.1% lower than in March.

On Thursday, ECB President Mario Draghi said the ECB was ready to cut interest rates and create a new cash stimulus to buy bonds to support economic growth in the euro zone. In which uncertainty about trade disputes and their effects on the global economy.

ECB Governor Draghi said the ECB is ready to use all the tools and instruments available to it to boost economic growth and revive European exports and industry. He added that the EC has already begun to discuss details of how to respond to investor fears in European markets about inflationary pressures and economic growth In the euro area.

This comes hours after the Reserve Bank of Australia cut interest rates by 25 basis points to a new historic level of 1.25% from 1.50% to support and stimulate the Australian economy, the largest trading partner of the Chinese economy, which is engaged in a trade war with the US Department of Trade protectionism with many countries China, followed by Mexico.

Technical Analysis

The precious metal (gold) started its daily trading with a slight decline in its attempt to consolidate its positive strength, supporting the ascending trend line at the intraday basis as shown in the accompanying graph. The pair also started to support its simple moving average for 50 periods on intraday basis. The main bullish trend is in the short and medium term, and we note the start of positive signals on the RSI after reaching oversold areas.

Therefore, we expect gold to rise in the next intraday, provided that the level of support 1328.88, to target the pivotal resistance level 1344.00 in preparation for an attack.

The general trend for today is bullish.

The US dollar fluctuated in a narrow bullish range during the Asian session to see its rebound for the second session in three sessions from its lowest since January 10 against the Japanese Yen following developments and economic data that followed the Japanese economy, the third largest economy in the world and on the brink of developments And economic data expected Thursday by the US economy, the largest economy in the world.

At 05:51 GMT, the USDJPY rose 0.03% to 108.43 compared to the opening levels at 108.41 after the pair reached a high of 108.54 and a low of 108.32.

The Japanese economy reported the annual reading of the Household Spending Index, which showed a slowdown in growth to 1.3% from 2.1% last March, in contrast to expectations of a 2.7% growth rate, in conjunction with an annualized reading of the median wage index. , Up from 1.3% in March, beating expectations for a decline to 0.7%. This was before we saw the reading of leading indicators, which showed a contraction of 95.5 vs. 95.9 in March, beyond expectations at 96.1.

On the other hand, investors are looking for the US economy to reveal data on the labor market, which may show the stability of unemployment rates at its lowest level in 49 years at 3.6%, unchanged from the previous reading for the month of April, amid expectations that The average hourly earnings index reflects an acceleration of growth to 0.3% versus 0.2% in April.

This is in line with the release of the Non-Farm Employment Change Index, which may indicate a slower pace of job creation to 180,000 added jobs versus 263,000 jobs in April and before we see the final reading of the Wholesale Inventories Index, 0.7%, unchanged from April's preliminary reading and 0.1% lower than in March.

Technical Analysis

USDJPY is attempting to correct the short term downside direction as it trades along a bearish trend line as shown in the attached chart. The pair is supported by the positive signals in the RSI until it reached oversold areas, For the 50-day SMA on the intraday basis. It appears that this corrective journey is nearing completion for approaching the resistance of its simple moving average.

Therefore, we expect the pair to decline in its next trading on the intraday basis, throughout the stability of the pivotal resistance 109.01, to target the level of support 107.84 again in preparation to break it.

The general trend for today is bearish.

Amazon was up after the support of 1679.23 but remains within the downside after stability.

The trading range is below 1765.27.

The price moves below the moving averages 7-7 and 50 which press the price to drop and continue to fall and test the next support 1589.27.

  Stochastic has emerged from oversold areas but could return to the move within this area due to price movement near resistance 176.27.

The expected movement between the 1589.27 support and the 1890.43 resistance.

General direction of the movement: bearish.

EURUSD

The pair is trading above 1.1255 in anticipation of the data on created jobs and average hourly wages in the US. It’s advisable to act based on the figures.

The price is above the middle Bollinger band, above SMA 5 and SMA 14. RSI is moving down and is close to the level of 50%. Stoch are reversing downwards.

Trading recommendations:

Sell the pair if the data are better than predicted with a probable drop of the price to 1.1200. At the same time, if the data is noticeably lower than predicated, it’s possible to buy the pair with the local target of 1.1350.

Gold futures fluctuated in a narrowly sloping range during the Asian session to see their rebound to its second highest session since February 20, when it tested its highest since April 19, 2018, negating the negative stability of the US Dollar index according to the relationship On the eve of developments and economic data expected Thursday by the US economy, the largest economy in the world.

Gold futures for August delivery fell 0.08% to currently trade at $ 1,335.10 per ounce from the opening at $ 1,336.10 per ounce, while the US dollar index fell 0.02% to 97.27 compared to the opening at 97.29. .

Investors are currently waiting for the US economy to reveal the final reading of the productivity index and the cost of one work, which may show a stable productivity growth of 3.6%, unchanged from the first quarter reading, compared with 1.9% in the previous quarter, Also slightly unchanged from preliminary reading and versus 2.0% growth in the previous quarter's reading.

This comes in conjunction with the reading of the index of claims for the week ending in early June, which may reflect the stability of 215 thousand requests, unchanged from the previous weekly reading, while may show the reading of the index of applicants for aid for the week of 25 May increase By 5 thousand applications to 1,662 thousand applications compared to 1,657 thousand applications in the previous weekly reading.

This is also in line with the release of the trade balance, which could reflect a widening deficit to $ 50.5 billion versus $ 50.0 billion in March, before we see the expected talk of FOMC member and New York Fed Chairman John Williams about the economy At the Council on Foreign Relations in New York.

This comes hours after the Beige Book report, which is important in being released two weeks before the FOMC meeting, followed by Federal Reserve Governor Jerome Powell earlier this week that the Fed would act appropriately to maintain the pace of growth The highest 2% and low unemployment rates in the US, explaining that he closely monitors the implications of trade tensions.

Technical Analysis

Gold was able to reach a few pips ahead of our main target at 1346.70. Some bearishness appears to be affected by stochastic negativity, noting that the index is shedding negative momentum and moving near oversold areas, Breaching the mentioned level to confirm the extension of the upside wave towards the 1365.25 zones as the next major station.

Therefore, the bullish trend will remain likely over intraday and short term unless the level of 1302.60 is breached and stability below it, noting that SMA 50 supports the suggested bullish wave.

The trading range for today is among the support at 1315.00 and resistance at 1350.00.

The general trend for today is bullish.

The single currency of the European Union region fluctuated in a narrowly bullish range during the Asian session to see its fourth session retreat in six sessions from its lowest since May 23, when its lowest since May 19 of 2017 was tested against the US dollar on the eve of the Developments and economic data expected Thursday by the economies of the euro zone and the US economy, the largest economy in the world.

At 04:23 GMT, the EURUSD rose 0.09% to 1.1231, compared to the opening at 1.1221, the pair's low during the session, while the pair reached a high of 1.1232.

The markets are looking ahead to the German economy's biggest reading of the factory demand index, which may show a slowdown in growth to 0.1% from 0.6% in March. This is before we see the end of the employment change for the Eurozone as a whole which may reflect Stabilized at 0.3%, unchanged from the first reading of the first quarter and the previous reading for the last quarter.

This comes in conjunction with the release of the seasonally adjusted GDP reading for the eurozone as a whole for the first quarter, which may reflect a widening stability of 0.4%, unchanged from the previous quarter's preliminary reading, versus 0.2% growth in the previous quarter, The index itself has a stable growth of 1.2%, unchanged from the previous preliminary reading and the previous annual reading for the fourth quarter.

To the ECB meeting at which zero interest rates could be maintained and the marginal lending rate stabilized at 0.25% with a negative deposit rate of -0.40% ahead of the upcoming ECB President Mario Draghi's speech.

The vice-president of the European Commission, Dombrovskis, said yesterday that the financial measures taken by Italy had damaged public funds. He explained that the disciplinary actions that Brussels is trying to take against Rome are justified. He said that Italy's recent political options were destructive to the third largest economy in the region And that growth has stopped almost there, adding that Italy has not complied with the standards and rules of debt imposed by the European Union.

On the other hand, the markets are currently waiting for the US economy to reveal the final reading of the productivity index and the cost of one work, which may show the stability of productivity growth at 3.6%, unchanged from the preliminary reading for the first quarter, compared to 1.9% in the previous reading of the last quarter, At 0.9%, also slightly unchanged from the preliminary reading, versus 2.0% growth in the previous quarter's reading.

This comes in conjunction with the reading of the index of claims for the week ending in early June, which may reflect the stability of 215 thousand requests, unchanged from the previous weekly reading, while may show the reading of the index of applicants for aid for the week of 25 May increase By 5 thousand applications to 1,662 thousand applications compared to 1,657 thousand applications in the previous weekly reading.

This is also in line with the release of the trade balance, which could reflect a widening deficit to $ 50.5 billion versus $ 50.0 billion in March, before we see the expected talk of FOMC member and New York Fed Chairman John Williams about the economy At the Council on Foreign Relations in New York.

This comes hours after the Beige Book report, which is important in being released two weeks before the FOMC meeting, followed by Federal Reserve Governor Jerome Powell earlier this week that the Fed would act appropriately to maintain the pace of growth The highest 2% and low unemployment rates in the US, explaining that he closely monitors the implications of trade tensions.

Technical Analysis

EURUSD touched yesterday's 1.1300 barrier but rebounded strongly to settle below the 1.1260 barrier, keeping our bearish outlook intact for the coming period, noting that Stochastic is currently beginning to cross negatively, posing a negative incentive to wait for the price to break. 1.1180 and opened the way to visit the 1.1100 level which represents the first major target of the suggested bearish wave.

On the other hand, it should be noted that the confirmation of the breach of 1.1260 will stop the expected decline and push the price for gains of 1.1350 and 1.1443 in the near term.

The trading range for today is expected among the 1.1140 support and the 1.1300 resistance.

The general trend for today is bearish.