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Gold futures traded in a tight range in the Asian session as the dollar index fell for a third session in five sessions from its highest since June 17, 2017, according to the inverse relationship between them on the eve of developments and economic data expected on Thursday by The US economy is the largest economy in the world.

Gold futures for February delivery rose 0.10% to currently trade at $ 1,248.20 per ounce, compared to the opening at $ 1,247.00 an ounce, with the US dollar index falling 0.04% to 96.95 from the opening at 96.99. .

Investors looking for the US economy are reading the Philadelphia Industrial Index, which may reflect a widening to 15.6 from 12.9 last month, with the weekly reading of the index showing a rise in the index of aid applications before we see the release of leading indicators which may show stability at zero levels against the high 0.1% last October.

This comes hours after the FOMC meeting of 18-19 December and the press conference held by Federal Reserve Governor Jerome Powell in Washington following the Committee's decision to raise interest rates by 25 basis points for the fourth time this year to 2.25% And 2.50% and move forward in reducing the repurchase of government bonds and mortgage bonds by $ 50 billion per month.

The downside risks to the economy have increased recently as global growth slowed and financial markets fluctuated, but these changes did not have a strong impact on the FOMC's expectations. The outlook for the economy continued to grow at a strong pace and inflation stabilized near target 2%, he said. Does not depend on predefined tracks and changes according to economic developments. This came after the Federal Commission lowered its average forecast for growth, inflation, the future of interest rates and raised the average forecast for unemployment rates for the next three years.

Technical Analysis

Gold was forced to rebound after testing the 1260.00 barrier, just a few points ahead of our main target at 1262.50, to test the 50 SMA which is good support for the price, Accompanied by a stochastic signal giving a bearish intersection signal.

Therefore, we believe that opportunities are available for a bullish rebound and resumption of the upside over the intraday basis within the corrective correction channel, with a reminder that breaching the target will extend gold gains to 1286.70, while a break of 1238.30 will halt the expected rally and press the pair to reverse.

The trading range for today is among the support at 1235.00 and resistance at 1265.00

Support and resistance:

Support: 1238.4-1227.3-1221.8

Resistance: 1251.2-1257.0-1262.8

The general trend for today is bullish

EURUSD

The pair is in uptrend as the Fed is expected to announce its decision concerning the pause in the interest rates hike in early 2019. The pair may receive support if rates aren’t raised today. At the same time, if the current monetary policy remains unchanged, the dollar will receive support and the pair may be put under significant pressure.

The price is above the middle Bollinger band, above SMA 5 and SMA 14. RSI is above the level of 50% and is slowly growing. Stoch have reversed upwards.

Trading recommendations:

The pair may drop to the lower border of the current range, 1.1265 following the favorable USD news. In the opposite scenario, it will rise to 1.1460.

Aeroflot fluctuates around the 101.19 support level tested over the past week and the price is unable to break this support

We note that the moving averages 7-50 go hand in hand at this level, which shows the strength of this support

Stochastic is out of the overbought zone, so the previous level is likely to hold back and the price is headed higher

The trading range between support 95.22 and resistance 108.15

Support and resistance:

Support: 101.19-96.22

Resistance: 108.15-1115.40

The single currency of the European Union region rose during the Asian session to see its rebound to its fourth lowest session since November 28 against the US dollar on the eve of developments and economic data expected Wednesday by the largest economies of the euro zone Germany and the US economy the largest economy in the world With the meeting of the Federal Open Market Committee in Washington.

The pair rose 0.17% to 1.1380, compared to the opening at 1.1361 after the pair reached a high of 1.1390 ​​and a low of 1.1360.

Investors from Germany, the largest economy in the euro zone, are looking for initial inflation data as the Producer Price Index (PPI), an initial index of inflationary pressures, which may reflect a 0.1% contraction versus 0.3% in October, The same index slowed growth to 3.1% from 3.3% in October's annual reading.

On the other hand, investors are looking to the US economy for the current account reading, which may reflect a widening deficit to $ 125 billion against $ 101 billion in the second quarter before we foretell the release of housing market data with the release of the Existing Home Sales Index Fell 0.4% to 5.20 million from 1.4% at 5.22 million last October.

This comes in the midst of a meeting of the Federal Open Market Committee in Washington, where monetary policy makers are expected to raise federal funds rates by 25bp for the fourth time this year to between 2.25% and 2.50% And go ahead with cuts in government bond and mortgage bond purchases by $ 50 billion per month.

It is also expected that the Federal Committee will reveal after the meeting today its expectations of growth rates, inflation and unemployment in addition to the future interest rates of short-term reference for the next three years, amid the expectation of any hints about the future tightening of monetary policy and the pace of raising interest on federal funds in the coming period in shadow The US administration has been critical of the Fed's hard-line policies and the recent momentum of economic data.

Technical Analysis

EURUSD is back to test the SMA 50 which continues to form a good resistance to the positive price attempts, noting that Stochastic is moving towards the overbought area, awaiting the resumption of the expected bearish intraday and short term targeting targets 1.10000 to confirm the rally towards 1.1181 .

We note the importance of stability below 1.1443 for the continuation of the expected decline, as breaching it will lead the price to the upside and achieve positive targets starting at 1.1550 then 1.1705.

The trading range for today is among the key support at 1.1380 and resistance at 1.1443

Support and resistance:

Support: 1.1341-1.1300-1.1210

Resistance: 1.1386-1.1443-1.1500

The general trend for today is bearish

The royal currency fluctuated in a narrow range inclined during the American session to see its rebound to a fourth session in five sessions from its lowest since April 11, 2017 against the US dollar amid a lack of economic data by the British Royal Economy. Followed Tuesday by the US economy, the world's largest economy.

The US housing market data showed a rise in construction starts and construction permits in November, with the Home Construction Index rising 3.2% to 1,256,000 versus 1.6% In October, outperforming expectations for stability at zero levels at 1,228,000 homes.

In the same context, building permits rose by 5.0% to 1,328 thousand last month, compared to a 0.4% drop at 1,265,000 in October, in contrast to expectations of a 0.4% drop at 1,260,000. Hours before the opening of the meeting of the Federal Open Market Committee in Washington today and tomorrow Wednesday.

Federal Reserve monetary policy makers are expected to raise federal funds rates by 25 basis points for the fourth time this year to between 2.25% and 2.50% and move forward with cuts in government bond purchases And mortgage bonds at $ 50 billion per month.

Markets are also looking for the Fed to unveil its expectations of growth, inflation and unemployment as well as future short-term benchmark interest rates for the next three years, looking for hints about the future tightening of monetary policy and the pace of raising federal funds rates in the coming period in criticism. The US president of the Fed's radical policies and the recent momentum of economic data.

Technical Analysis

GBPUSD breached the 1.2636 level and closed the daily candlestick above it, signaling the direction of the price for further gains in the coming period as the positive targets start at 1.2725 and extend to 1.2815 after breaching the previous level.

Therefore, the bullish trend will be likely for today unless the 1.2636 level is broken and stability below it again

The rallying average is expected to be 20 resistance at 1.2713. While the Stochastic is heading towards the overbought area in reference to the bullish movement.

The trading range for today is expected among 1.2600 support and 1.2800 resistance

Support and resistance:

Support: 1.2590-1.2500

Resistance: 1.2636-1.2713-1.2775

The general trend for today is bullish

Gold futures traded in a narrowly bullish range during the Asian session to see their rebound to its fourth straight session since December 4 as the US dollar rebounded to its fourth high since June 17, 2017. On the eve of developments and economic data expected Wednesday by the US economy, the largest economy in the world in conjunction with the proceedings of the meeting of the Federal Open Market Committee in Washington.

Gold futures for February delivery rose 0.06% to currently trade at $ 1,254.40 an ounce, showing a two-week drop from the opening at $ 1,253.50 per ounce, amid a decline in the US Dollar 0.07 index. % To 96.87 compared to the opening at 96.91.

Investors are eyeing the US economy for the current account reading, which could reflect a widening deficit to $ 125 billion versus $ 101 billion in the second quarter before we foretell the release of housing market data with the release of the Existing Home Sales Index, which may reflect a 0.4% To 5.20 million from 1.4% at 5.22 million last October.

This comes in the midst of a meeting of the Federal Open Market Committee in Washington, where monetary policy makers are expected to raise federal funds rates by 25bp for the fourth time this year to between 2.25% and 2.50% And go ahead with cuts in government bond and mortgage bond purchases by $ 50 billion per month.

It is also expected that the Federal Committee will reveal after the meeting today its expectations for growth rates, inflation and unemployment in addition to the future interest rates of short-term reference for the next three years, amid the expectation of any hints about the future tightening of monetary policy and the pace of raising interest on federal funds in the coming period in shadow The US administration has been critical of the Fed's hard-line policies and the recent momentum of economic data

Technical Analysis

Gold is trading around 1250.00 and gold is showing a quiet positive move to gradually advance towards our positive target at 1262.50, which supports the continuation of the bullish scenario over intraday basis within the corrective correction channel, supported by the 50 moving average that carries the price from the bottom. And the entry of the stochastic index into the saturation area of ​​the purchase

Keep in mind that breaching the target will extend the gold gain to 1286.70 as the next stop, while stability above 1238.30 is an important requirement for the continuation of the expected rally.

The trading range for today is among the support at 1238.60 and resistance at 1265.00

Support and resistance:

Support: 1238.6-1227.00-1221.9

Resistance: 1250.30-1257.0-1262.8

The general trend for today is bullish

The US dollar fell during the US session to see its lowest since October 29 against the Japanese yen following developments and economic data that followed on the Japanese economy and on the eve of developments and economic data expected Wednesday by the US economy, the largest economy in the world in conjunction with the proceedings of the meeting of the Committee Federal Open Market in Washington.

At 05:59 GMT, the USDJPY dropped 0.14% to 112.36 from the opening levels at 112.52 after hitting a seven-week low of 112.19 while the pair reached a high of 112.60. .

On the Japanese economy, the reading of the trade balance showed that the deficit widened to 0.74 trillion yen from 0.45 trillion yen in October, worse than the forecast of a deficit of 0.63 trillion yen. The revised trade balance showed the widening deficit to 0.49 trillion yen 0.29 trillion yen, while expectations for a deficit of 0.31 trillion yen, as the growth of exports slowed more than the slow growth of imports during the last month.

This comes hours after the Japanese government released its forecast of growth and capital spending in addition to inflation for the year 2018 and 2019 next year, which lowered its forecast for growth this year to 0.9% from 1.5% and next year to 1.3% from 1.5%, amid forecasts That capital spending in the current year to 3.6% and next year to 2.7%.

As the Japanese government lowered its forecast for inflationary pressures in the year 2018 to 1.0% from 1.1% and for the next year 2019 to 1.1% from 1.5% in previous forecasts, and we wish to note that Japan's fiscal year is the third largest economy in the world expires by the end of March and begins New fiscal year there with the beginning of April, the Japanese government is expected to use these estimates as they prepare to balance the new fiscal year.

On the other hand, investors are looking to the US economy for the current account reading, which may reflect a widening deficit to $ 125 billion against $ 101 billion in the second quarter before we foretell the release of housing market data with the release of the Existing Home Sales Index Fell 0.4% to 5.20 million from 1.4% at 5.22 million last October.

This comes in the midst of a meeting of the Federal Open Market Committee in Washington, where monetary policy makers are expected to raise federal funds rates by 25bp for the fourth time this year to between 2.25% and 2.50% And go ahead with cuts in government bond and mortgage bond purchases by $ 50 billion per month.

It is also expected that the Federal Committee will reveal after the meeting today its expectations of growth rates, inflation and unemployment in addition to the future interest rates of short-term reference for the next three years, amid the expectation of any hints about the future tightening of monetary policy and the pace of raising interest on federal funds in the coming period in shadow The US administration has been critical of the Fed's hard-line policies and the recent momentum of economic data.

Technical Analysis

The USD / JPY pair broke the 112.46 level below it, opening the way towards the next target at 111.97. The price should be monitored at this level as breaching it will cause an extension of the bearish wave in the short term, To 110.40.

Stochastic is losing its positive momentum to support the continuation of the downside movement during the coming period, which will remain intact unless 112.97 and above 113.56 are breached and stability above it.

The trading range for today is among the key support at 111.50 and resistance at 113.00

The general trend for today is bearish

USDCHF

The pair is in downtrend against the background of the weaker demand for risk assets and growing demand for protective assets. The global economic growth slowdown is a major source of investors’ concerns, as it may lead to a new recession already in 2020.

The price is below the middle Bollinger band, below SMA 5 and SMA 14.RSI is below the level of 50% and is reversing downwards. Stoch aren’t informative.

Trading recommendations:

If the price remains below 0.9920, it may go further down to 0.9860.

The single currency of the European Union region fluctuated in a narrow upward range during the Asian session to see its rebound to its third straight session since November 28 against the US dollar on the brink of developments and economic data expected Tuesday by the biggest euro zone economies Germany and the economy The largest economy in the world.

At 04:23 GMT, the EURUSD rose 0.05% to 1.1354 compared with the opening at 1.1348 after the pair reached a high of 1.1360 and a low of 1.1344.

The markets are currently looking for the German economy to detect the IFO Business Climate Index, which may reflect a contraction of the widening to 101.8 versus 102.0 last November. The same indicator of expectations may show a widening of 98.3 versus 98.7 a month The reading of the same indicator for the current assessments may show that the gap has narrowed to 104.9 versus 105.4.

On the other hand, investors are looking for the US economy to reveal the housing market data with the reading of the Construction Starts Index and the Construction Permit for the last month. The reading of the Building Permits Index is expected to decrease to 0.4% at 1,260,000 vs. 0.6% While the reading of the Construction Starts Index may indicate a slowdown in growth to 0.2% at 1.230 thousand homes compared to 1.5% at 1,228 thousand homes.

Markets are also looking closely at the FOMC meeting to be held today and Wednesday in Washington, where monetary policy makers are expected to raise federal funds rates by 25 basis points for the fourth time this year to between 2.25% and 2.50% and move forward in reducing the repurchase of government bonds and mortgage bonds.

The Federal Reserve is expected to unveil growth and inflation expectations as well as future short-term benchmark interest rates for the next three years, looking for any hints about the future tightening of monetary policy and the pace of raising federal funds over the coming period in shadow. The US president's criticism of the Fed's radical policies and the recent momentum of economic data.

Technical Analysis

The EUR / USD pair is trading around the 1.1355 level after yesterday's slight rally, as the pair was positively affected by stochastic, but since the price is below 1.1443, our bearish outlook remains intact targeting 1.1300 and 1.1181.

Moving averages pressured the price as yesterday's high yesterday stopped at SMA 20 and the SMA 50 moved near the resistance level 1.1386 to increase negative pressure on the price.

While the stochastic is still moving sideways in a reversal of medium-term sideways movement

A break of 1.1443 will lead the price to gains starting at 1.1550 and extending to 1.1705.

The trading range for today is expected between 1.1250 and 1.1420 support

Support and resistance:

Support: 1.1341-1.1300-1.1210

Resistance: 1.1386-1.1443-1.1500

The general trend for today is bearish

The royal currency fluctuated in a narrowly bullish range during the US session to see its rebound to a third session in four sessions from its lowest since April 11, 2017 against the US dollar following developments and economic data that followed Monday on the RBA and its economy The largest economy in the world.

The UK's RTI saw a contraction of 1.5% from 1.7% last November, while the same reading showed a 0.7% rise from 0.2% in the previous year's reading. Before seeing the statements of British Prime Minister Theresa Mae's spokeswoman, James Slack, in which he said the parliament was to vote on a British exit from the European Union in January.

Slack also noted that the British cabinet would discuss preparations for the UK's exit from the EU without reaching an agreement on an orderly exit with the EU. The British Prime Minister Mai received assurances from European leaders last week, but there is still more, A vote in Parliament on the options of the exit agreement, adding that she believes that the current exit agreement is the only agreement available to Britain.

On the other hand, we followed the US economy reading the New York Industrial Index, which shows a contraction of 10.9 to 23.3 in November, worse than expected at 20.1, before we saw the release of housing market data with the housing index reading from Ahead of the National Association for Home Building, which showed a widening gap to 56 versus 60 in November, beyond expectations at 61.

Technical Analysis

GBP / USD is testing a new level of 1.2636 and maintains stability below it, keeping the bearish scenario intact for the coming period, supported by the stochastic loss of the positive momentum gradually, along with the negative pressure formed by SMA 50, In principle.

A break of 1.2636 will push the pair to achieve positive targets starting at 1.2725 then 1.2820.

The trading range for today is expected among 1.2500 support and 1.2700 resistance

Support and resistance:

Support: 1.2495-1.2405-1.2350

Resistance: 1.2638-1.2713-1.2875

The general trend for today is bearish