Analytic reviews

The single currency of the European Union region fluctuated in a narrowly bearish range during the Asian session to retrace its fifth session in six sessions from its highest since January 11 after Fed Governor Jerome Powell spoke in Washington on the eve of the upcoming economic developments and data On Thursday by the eurozone economies and the US economy, the world's largest economy.

At 04:58 GMT, the EURUSD dropped 0.03% to 1.1359, compared to the opening at 1.1362 after hitting the lowest level since January 25 at 1.1357. 1.1368.

The markets are currently looking ahead to Germany's biggest economy for the Industrial Production Index, which could rise 0.8% from 1.9% in November, while the index's annual reading may shrink to 3.3% from 4.7%. The second-largest economy in the region is seeing France's trade balance reading, which could reflect a contraction of the deficit to 4.1 billion euros from 5.1 billion euros in November.

This comes before we see the release of the ECB's monthly report in conjunction with the release of Italy's third-largest economy, which is expected to show a 0.1% drop from 0.7% in November, to the European Commissioner's economic forecast for the region. , We have followed yesterday the confirmation of European Council President Donald Tusk not to renegotiate the British exit agreement from the European Union.

On the other hand, we followed Fed Deputy Governor and Federal Open Market Committee member Randall Quarles on the stress test for banks at the New York Board of Education, before we see Federal Reserve Governor Jerome Powell speaking at the Virtual Teacher City Hall meeting at the national level. Noting that inequality in income and slow productivity are the biggest challenges of the coming decade.

Powell said slow productivity and a widening wealth gap are the biggest challenges facing the United States over the next decade, adding that his major economic concerns fall outside the purview of the Federal Reserve, with emphasis on the adoption of more aggressive policies to address income inequality. In the middle and lower levels "grew much slower" than wages in the upper limbs.

The markets are currently looking for the US economy to read the Jobless Claims Index for the week ending February 2nd, which may reflect a 33K drop to 220K in the previous week's reading before we see the Federal Reserve Vice President and member of the Federal Market Commission Open Richard Clareda about neutral interest rates at the Czech National Bank conference in Prague.

Technical Analysis

The EUR / USD pair broke the 1.1386 level and closed the daily candle below it, to activate the bearish scenario over intraday basis targeting the 1.1181 as the next major station.

Therefore, the bearish bias will be likely in the coming sessions, supported by the negative pressure formed by SMA 50, noting that the break of 1.1386 and stability above it will stop the suggested decline and bring us back to neutral again.

The trading range for today is expected among 1.1300 support and 1.1440 support

The general trend for today is bearish

Cisco shares continue to rise for the fifth week in a row supported by the moving averages that move down the price in a positive order and give stability and stability in the ascending

The pair is trading above the resistance level of 46.60 and the target at 49.12.

The Stochastic is moving within the overbought area and gives the price positive pressure as long as the movement in this area

The trading range between support 44.57 and resistance 49.12

The general trend of the movement is bullish

The Australian dollar fell during the Asian session to see its rebound for the third session in five sessions of its highest since December 5 against the US dollar after Governor of Australia Reserve Bank Philip Louis in Sydney and the State of the Union address to President Donald Trump in Washington on the eve of developments And economic data expected Wednesday by the US economy, the largest economy in the world.

At 02:32 GMT, the AUDUSD fell 0.87% to 0.7171 compared to the opening levels at 0.7235, after reaching a low of 0.7166, while reaching a high of 0.7246.

Australian Central Bank Governor Philippe Lowe told the National Press Club that interest rate expectations are broadly balanced, as they were priced in the markets as cautious comments from the Reserve Bank of Australia. "Over the past year, The next step up is likely on the scenario that the next step will be reduced, and today the odds are moderately balanced. "

He noted that if the labor market saw more strength and tightening, interest rates could rise, while any weakness in the labor market would hurt the Reserve Bank of Australia to reassess the situation. This came hours after the central bank's monetary policymakers decided to set interest rates for the 28th meeting Respectively at 1.50% and the release of the Bank of Australia's Interest Rate Statement on Tuesday.

On the other hand, we followed US President George Bush's State of the Union address, which rekindled concerns about a new partial closure of the Federal Government. The markets are looking forward to the initial reading of a single labor cost index for the fourth quarter, To 1.7% from 0.9% in the third quarter.

The markets are also closely approaching the preliminary reading of US non-farm productivity, which may show growth slowing to 1.7% versus 2.3% in the third quarter, in conjunction with the November trade balance reading, which may indicate a contraction of the deficit to 54.0 $ Billion against $ 55.5 billion last October.

In another context, we are expected to see early Thursday the talk of Federal Reserve Federal Reserve Federal Reserve Committee Chairman Randall Quarles about the stress test for banks at the Council for Economic Education in New York, an hour before Federal Reserve Governor Jerome Powell at a meeting Hall The Virtual City of Teachers Nationwide in Washington.

In the same vein, we followed the Fed's statement earlier this week that at the invitation of US President Trump, Federal Reserve Governor Paul and his deputy Richard Clarida joined US President and Treasury Secretary Stephen Menuchin for an informal dinner at the White House to discuss developments The economic outlook for growth, the labor market, and inflationary pressures, and that Powell's comments on this were consistent with his remarks at his recent press conference and that he did not discuss his expectations for monetary policy.

Powell said that the Federal Reserve's monetary policy path will depend mainly on the economic information received and what this means for expectations. He said on Monday that he and his colleagues in the Federal Commission will develop a monetary policy aimed at reaching the full employment and price stability of workers and that their decisions are based only on analysis Objective, and non-political. We would like to point out that this is the first meeting of the American president since he took Powell's nomination and following Trump's recent criticism of Powell for lifting the latter last year.

Federal Reserve monetary policy makers kept interest rates between 2.25% and 2.50% last week while continuing to cut bond purchases by $ 50 billion per month. Federal Commissioner Jerome Powell said that the committee would be patient and monitor economic data as the downside risks to the economy worsened due to the weakening of global growth and fluctuations in financial precedents. Whether or not this approach will continue depends on economic data.

Technical Analysis

The AUDUSD is showing further downside to near our target of 0.7075, and we believe that the area is open for the continuation of the bearish trend with the next target at 0.6982, supported by the negative pressure formed by SMA 50.

All in all, we continue to push the bearish trend unless the level of 0.7170 is breached and stability above it.

The trading range for today is among the key support at 0.6982 and resistance at 0.7150

The general trend for today is bearish

EURUSD

The pair is above 1.1350 due to weaker Euro because of the likely recession of the eurozone’s economy this year, and to stronger positions of the USD as a safe-haven currency.

The price is below the lower Bollinger band, below SMA 5 and SMA 14. RSI is in the oversold territory and is moving horizontally. Stoch are also in this zone.

Trading recommendations:

If the pair drops below 1.1350, it may go further down to 1.1300.

The US dollar fell during the Asian session against the Japanese yen amid a lack of economic data by the Japanese economy, the third largest economy in the world and following the speech by US President Donald Trump, the State of the Union address to Congress in Washington and on the eve of developments and economic data expected Wednesday by the US economy largest economy In the world.

At 06:07 GMT, the greenback was down 0.18% at 109.76, compared to the opening levels at 109.96 after recording a low of 109.63 and a high of 110.05.

US President Trump's speech on the state of Congress was followed by concern over a new partial closure of the federal government that shines in the shadow of Trump's determination to set up a border wall with Mexico and Democrats refuse to finance it. Otherwise, markets are now looking to read Initial labor cost index which reflects the acceleration of growth to 1.7% compared to 0.9% in the third quarter last.

The US economy is also closely approaching the preliminary reading of US non-farm productivity, which may show growth slowing to 1.7% versus 2.3% in the third quarter, in conjunction with the November trade balance reading, To $ 54.0 billion from $ 55.5 billion last October.

Technical Analysis

The USD / JPY pair has been trading sideways in recent sessions and is starting bearish today to test SMA 50, but since the price is above 109.12, the bullish scenario will remain intact over the intraday range and the price needs to breach 110.00 to confirm the upside wave extension towards 111.56.

Keep in mind that breaking 109.12 will stop the positive scenario and put the price under negative pressure with targets starting at 108.09.

The trading range for today is expected among the support at 109.16 and the resistance at 110.70

The general trend for today is bullish

Gold futures traded in a tight range slipping into the Asian session to see their rebound to a third session in four sessions since April 25 as the US dollar index rose to its highest since January 25 according to the inverse relationship between them After US President Donald Trump delivered a State of the Union speech to Congress in Washington on the eve of economic developments and data expected Wednesday by the US economy, the world's largest economy.

At 04:07 am GMT, gold futures for April delivery fell 0.07% to currently trading at $ 1,318.40 per ounce, compared to the opening at $ 1,319.40 an ounce, while the US dollar index rose 0.03% to 96.10 levels. Fifth low since January 10 compared to the opening at 96.06.

US President Trump's speech on the state of Congress was followed by concern over a new partial closure of the federal government that shines in the shadow of Trump's determination to set up a border wall with Mexico and Democrats refuse to finance it. Otherwise, markets are now looking to read Initial labor cost index which reflects the acceleration of growth to 1.7% compared to 0.9% in the third quarter last.

The US economy is also closely approaching the preliminary reading of US non-farm productivity, which may show growth slowing to 1.7% versus 2.3% in the third quarter, in conjunction with the November trade balance reading, to $ 54.0 billion from $ 55.5 billion last October.

On the other hand, the World Gold Council's statistics last week pointed to the global purchases of gold by the global central banks in 2018 to their highest level since 1967. Purchases rose to 651.5 metric tons, up 74% from 2017 to 375 tons Metric tonnes, with many countries buying gold, topped by Russia, at 274 metric tons, which surpassed China, the world's largest consumer of metals, and inspire both Poland and Kazakhstan.

Global gold consumption rose to 4,345.1 metric tons last year from 4,159.9 metric tons in 2017. Retail investment in bullion and gold coins rose 4 percent to 1,090.2 metric tons, supported by Iran's demand increase of 222 percent to 62 metric tons, Demand for jewelry has stabilized at around 2,200 metric tons with increased consumption compensation in both China, the United States and Russia for lower demand from the Middle East and India.

In contrast, the demand for financial institutions fell by 67% from the year 2017, when the world supply of gold increased 1% to a total of 4,490.2 metric tons in 2018. The gold futures contracts last month made the fourth monthly gain, respectively, illustrated Has seen its longest monthly gains since late 2010, after ending its longest monthly loss march since late 1996.

Technical Analysis

Gold is trading below 1316.65 and Stochastic continues to provide negative signals. The bearish scenario remains valid for the coming period and needs to breach the 1309.00 level to facilitate the move towards our awaited targets starting at 1294.00 and then 1286.70.

We note that a break of 1316.65 will stop the suggested bearish trend and lead the price to resume the short term bullish trend, which is next target at 1335.00.

The trading range for today is among the support at 1296.00 and resistance at 1325.00

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 its fourth session retreat in five sessions since January 11 after US President Donald Trump delivered a State of the Union address to Congress in Washington on the eve of developments. And economic data expected Wednesday by the largest economies of the eurozone Germany and the US economy the largest economy in the world.

At 0436 GMT, the EURUSD fell 0.06% to 1.1399, compared to the opening at 1.1406 after hitting its lowest level since January 28 at 1.1396, while the highest in the session At 1.1410.

The markets are looking for the largest eurozone economies to show the factory demand index, which may rise 0.3% from 0.1% in November, while the seasonally adjusted annualized reading for the same index may show a drop to 6.7% from 4.3%. The previous annual reading for the month of November.

The German Chancellor Angela Merkel said there was still time to find a political solution to Britain's exit from the EU, stressing the importance of knowing exactly what Britain wanted, and stating that a solution to the Pakstop plan would depend on the trade agreement to be implemented. It is expected that the European Commission President John Claude Juncker will meet with British Prime Minister Teresa Mae on Thursday.

On the other hand, we have followed US President Trump's presentation of the State of the Union address to Congress amid a state of anxiety about a new partial closure of the federal government that shines in the shadows of Trump's determination to establish a border wall with Mexico and the Democrats' refusal to finance the Wall. For the first reading of the single labor cost index, which reflects the acceleration of growth to 1.7% compared to 0.9% in the third quarter last.

The US economy is also closely approaching the preliminary reading of US non-farm productivity, which may show growth slowing to 1.7% versus 2.3% in the third quarter, in conjunction with the November trade balance reading, to $ 54.0 billion from $ 55.5 billion last October.

Technical Analysis

The EUR / USD pair is trading slightly lower today, moving below the SMA 50, on its way to the pivotal support test at 1.1370, which is one of the keys to the next trend along with the 1.1443 resistance. As mentioned yesterday, the price needs to breach one of these levels to define its next targets He explained.

Therefore, our neutral position will remain until we get a clearer signal for the next direction, noting that breaching the mentioned support will press the price towards 1.1181 mainly while breaching the resistance will lead the price to resume the upside targeting 1.1550 then 1.1705 initially.

The trading range for today is expected among 1.1300 support and 1.1500 resistance

The expected general trend for today: neutral

The Australian dollar fell during the Asian session to see its rebound for the third session in five sessions of its highest since December 5 against the US dollar after Governor of Australia Reserve Bank Philip Louis in Sydney and the State of the Union address to President Donald Trump in Washington on the eve of developments And economic data expected Wednesday by the US economy, the largest economy in the world.

At 02:32 GMT, the AUDUSD fell 0.87% to 0.7171 compared to the opening levels at 0.7235, after reaching a low of 0.7166, while reaching a high of 0.7246.

Australian Central Bank Governor Philippe Lowe told the National Press Club that interest rate expectations are broadly balanced, as they were priced in the markets as cautious comments from the Reserve Bank of Australia. "Over the past year, The next step up is likely on the scenario that the next step will be reduced, and today the odds are moderately balanced. "

He noted that if the labor market saw more strength and tightening, interest rates could rise, while any weakness in the labor market would hurt the Reserve Bank of Australia to reassess the situation. This came hours after the central bank's monetary policymakers decided to set interest rates for the 28th meeting Respectively at 1.50% and the release of the Bank of Australia's Interest Rate Statement on Tuesday.

On the other hand, we followed US President George Bush's State of the Union address, which rekindled concerns about a new partial closure of the Federal Government. The markets are looking forward to the initial reading of a single labor cost index for the fourth quarter, To 1.7% from 0.9% in the third quarter.

The markets are also closely approaching the preliminary reading of US non-farm productivity, which may show growth slowing to 1.7% versus 2.3% in the third quarter, in conjunction with the November trade balance reading, which may indicate a contraction of the deficit to 54.0 $ Billion against $ 55.5 billion last October.

In another context, we are expected to see early Thursday the talk of Federal Reserve Federal Reserve Federal Reserve Committee Chairman Randall Quarles about the stress test for banks at the Council for Economic Education in New York, an hour before Federal Reserve Governor Jerome Powell at a meeting Hall The Virtual City of Teachers Nationwide in Washington.

Technical Analysis

The AUDUSD opened today's trading session with strong negativity to complete the formation of a double top pattern showing its image features, which reinforces the bearish scenario over the short and short term, noting that a break of 0.7150 will push the price towards 0.7075 as the next major station.

From here, the bearish bias will be likely in the coming sessions unless the 0.7210 level is breached and stability above it.

The trading range for today is expected among the support at 0.7075 and the resistance at 0.7200

The general trend for today is bearish

Aeroflot is moving in a downtrend under the influence of the double top that is pushing the price lower

The price is moving below the moving averages you are pushing and pushing it towards the support level of 100.34.

Stochastic continues to provide negative signals moving zone of saturation of the sale, therefore, we will see price declines and break the support level 100.34

The trading range is among the support at 100.34 and resistance at 109.50.

Support and resistance:

Support: 100.34-90.17

Resistance: 109.50-116.49

The general trend of the movement is bearish

AUDUSD

The pair is trading below 0.07150 as the Reserve Bank of Australia is now less expected to raise interest rates this year.

The pair is below the lower Bollinger band, below SMA 5 and SMA 14. RSI is testing the oversold territory. Stoch are entering the oversold zone.

Trading recommendations:

Sell the pair with a possible target of 0.7080.