Analytic reviews

Tuesday, October 20th, today’s news—European markets rise thanks to positive earnings reports despite the lockdown worries, Euronext is open following yesterday's technical glitches. The dollar and the euro are weaker as the US stimulus package hopes fade, Asia-Pacific markets are mixed. The price of Brent oil is $42.63, WTI—$41.18, EUR/USD is at 1.1814, GBP/USD—1.2967, gold is $1,910.20 per ounce.

Futures prices fluctuated in a narrow range that tends to decline during the Asian session, overlooking the rebound of the US dollar index for the fourth session from its highest since the second of October, according to the inverse relationship between them on the cusp of developments and economic data expected today, Tuesday, by the American economy, which includes the expiration of The deadline given by US House of Representatives Speaker Nancy Blossi to reach an agreement with the White House on approving the second package of stimulus before the upcoming US presidential elections.
 
At exactly 05:25 am GMT, gold futures contracts for next December delivery decreased 0.12% to trade at $ 1,904.10 per ounce compared to the opening at $ 1,906.40 per ounce, knowing that the contracts started trading on a downward price gap after it was concluded Yesterday's trading was at $ 1,911.70 per ounce, while the US dollar index fell 0.03% to 93.39 compared to the opening at 93.42.
 
Investors are currently awaiting the US economy to unveil the housing market data with the release of both the Housing Starts Index and the Building Permit Index reading, and amid expectations that the building permit reading will reflect an increase to about 1.52 million permits, compared to about 1.48 million permits last August, as well. The home start-up reading may show an increase to about 1.45 million homes, compared to about 1.42 million in August.
 
And this comes, before we witness the speech of members of the Federal Open Market Committee and New York Federal Reserve Chairman John Williams making opening remarks in a series of webinars hosted by the New York Federal Reserve, leading to the speech of Federal Reserve Vice Governor Randall Quarles about the agenda of the Financial Stability Board in Virtual meeting hosted by the Securities Industry and Financial Markets Association.
 
Other than that, the markets are looking forward to the results of the ongoing talks between Democratic Speaker of the House of Representatives Nancy Blossy with Treasury Secretary Stephen Mnuchin, which aim to put the final touches to the second stimulus package that aims to support the largest economy in the world in the face of the repercussions of the Corona pandemic, and this comes amid the tension and attraction between the poles of politics The American ruling Republican Party and Democratic Party ahead of the US presidential elections early next month.
 

Technical analysis

 
Gold price is trying to breach the 1901.80 level, which requires attention from upcoming trading, as confirmation of the breach will pressure the price to resume the downside movement and achieve negative targets that start at 1885.00 and extend to 1860.90.
 
On the other hand, we note that the stochastic oscillator is showing positive signs that may protect the price from incurring more losses and lead to the start of an intraday bullish wave targeting 1920.00 then 1934.86 areas.
 
Therefore, we prefer to stay neutral temporarily until the price confirms its position in relation to 1901.80 and then determines its next direction more precisely.
 
The expected trading range for today is between 1880.00 support and 1920.00 resistance
 
The expected overall trend for today: Neutral

 
Gazprom share continues to move below the support level 186.00 within the descending channel that appears on the chart.
The price is now moving below the 20 to 50 averages that form resistance levels and pressurize it to decline.
While we have major resistance at 202.70 and major support at 158.75.
We see that the stochastic indicator is trying to exit the oversold area and return to the upside towards the overbought area and start the movement within an upward path. This coincides with the price reaching the lower bound of the descending channel within which it is moving, so we may see an upward correction in the price.

The US dollar fluctuated in a narrow range that tends to rise, to witness its rebound for the third session in five sessions from its lowest since the second of October, when it tested its lowest since September 23 against the Japanese yen amid scarce economic data by the Japanese economy and on the cusp of Economic developments and data expected today, Tuesday, by the US economy, which include the speech of members of the Federal Open Market Committee.

At 06:50 AM GMT, the US dollar against the Japanese yen rose by 0.09% to 105.53 levels compared to the opening levels at 105.43, after the pair achieved its highest level since the 13th of this month at 105.62, while it achieved its lowest level during the session's trading. At 105.35.

Investors are currently awaiting the US economy to unveil the housing market data, with the release of both the Housing Starts Index and the Building Permit Index, and amid expectations that the building permits reading will reflect an increase to about 1.52 million permits compared to about 1.48 million permits in August. The home start-up reading shows an increase to about 1.45 million homes, compared to about 1.42 million homes in August.

And this comes, before we witness the speech of members of the Federal Open Market Committee and New York Federal Reserve Chairman John Williams making opening remarks in a series of webinars hosted by the New York Federal Reserve, leading to the speech of Federal Reserve Vice Governor Randall Quarles about the agenda of the Financial Stability Board in Virtual meeting hosted by the Securities Industry and Financial Markets Association.

Technical analysis

The dollar against the yen crossed the 105.45 level and settled above it, completing the formation of a bullish sub-pattern that has positive targets that reach 106.00 and may extend to 106.44, which makes us expect to witness further upside in the upcoming sessions, supported by the move above the 50 SMA.

Therefore, a bullish bias will be expected for today unless breaking 105.20 and holding below it.

The expected trading range for today is between 105.00 support and 106.20 resistance.

The expected general trend for today: Bullish.

#VTB

The stock is trading at historic lows. A bullish divergence has formed on Awesome Oscillator, and Stochastic Oscillator indicates an oversold condition. A breakout of the inclined channel of the descending pattern will result in an upward movement.

#VTB rate online: monitor the price movement in real time.

Trading recommendations:

Buy when a 1-2-3 ascending pattern is formed, where wave 1 breaks through the inclined channel of the descending pattern.

Stop Loss: 0.0314.

Target levels: 0.03460; 0.03630; 0.03790.

AUDUSD

The descending H2 level pattern is truncated. A bullish divergence has formed on Awesome Oscillator, and Stochastic Oscillator indicates an oversold condition.

AUDUSD rate online: monitor the price movement in real time.

Trading recommendations:

Buy when an ascending wave pattern is formed, where the wave (A) breaks through the inclined channel of the descending truncated H2 level pattern.

Stop Loss below the support level of 0.7008.

Target levels: 0.7150; 0.7235.

NZDUSD

The pair is forming the “rising flag” trend pattern after the breakout of 0.6575. The expected decline in demand for commodity assets due to the drop in economic activity around the world because of COVID-19 is weighing on the pair. If this market sentiment persists the price will drop further.

Technical side:

The price is below the middle Bollinger band, below SMA 5 and below SMA 14. Moving averages have intersected and suggest selling. RSI is below 50% and is declining. Stoch are in the oversold zone.

NZDUSD rate online: follow the price movement in real time.

Trading recommendations:
If the price fixes below 0.6575, it will result in a further drop first to 0.6540, and then to 0.6510.

Monday, October 19th, today’s news—China's GDP grew 4.9% in Q3, less than the predicted 5.2%. This is weighing on the markets, oil and gold are down, but the overall trend is positive due to other factors: expectations of vaccine until the end of the year, stimulus hopes in the US, positive reports of European corporations. The price of Brent oil is $42.72, WTI—$40.94, EUR/USD is at 1.1762, GBP/USD—1.3012, gold is $1,915.35 per ounce.

Aeroflot continues its descending path after breaching the support 68.30 and moving towards the level of 50.60, which is the target for the downside movement.

The price continues to move below the moving averages 507-20- which move in a bearish order above the price near the resistance level 68.31-78.50 and press the price for further decline.

The stochastic oscillator is within the oversold area and is moving within this area within a sideways path, therefore we may see a further drop in the price.

General trajectory of movement: a downtrend 

The Australian dollar fluctuated in a narrow, upward range during the Asian session against the US dollar amid scarcity of economic data by the Australian economy at the beginning of this week and in the wake of the economic developments and data that were followed by the Chinese economy, Australia's largest trading partner, and on the cusp of developments and expected economic data today, Monday. The US economy was the largest in the world, which includes the Fed Governor and Federal Open Market Committee members to speak via satellite.
 
At exactly 05:17 am GMT, the Australian dollar against the US dollar rose 0.01% to 0.7088 levels compared to opening levels at 0.7087, after the pair achieved its highest level during the session's trading at 0.7108, while it achieved its lowest level at 0.7072, knowing that The pair started the session on a rising gap after ending last week’s trading at 0.7081 levels.
 
On Tuesday, we are looking forward to the speech of Assistant Governor of the Reserve Bank of Australia about the financial markets, Christopher Kent, about the recent monetary policy measures taken by the Australian Central Bank in the roundtable symposium, before we also see tomorrow, the RBA revealed the minutes of its last meeting held on the sixth of this month Which was kept interest rates at the lowest ever at 0.25%.
 
Other than that, we have followed the National Bureau of Statistics of China disclosure of the seasonally adjusted reading of the GDP for the third quarter, which showed a slowdown in growth to 2.7% compared to 11.5% in the last second quarter, worse than expectations that indicated a slowdown in growth to 3.2%, while the annual reading of the index indicated The same growth accelerated to 4.9% compared to 3.2% in the second quarter, also below expectations that indicated growth to expand to 5.5%.
 
This coincided with the annual retail sales index of China, the largest economy in Asia and the second largest in the world, showed that growth accelerated to 3.3% compared to 0.5% last August, surpassing expectations that indicated an acceleration of growth to 1.7%, and in another context, she explained. China's unemployment rate index reading fell to 5.4% from 5.6% in August, also beating expectations that indicated a decline to 5.5%.
 
We have also followed up by the largest industrial country in Asia and the second largest industrial country in the world after the United States of America, the disclosure of industrial sector data with the release of the annual reading of the industrial production index by the National Bureau of Statistics of China, which showed an acceleration of growth to 6.9% compared to 5.6% in August. / August, also outperforming expectations which indicated growth to accelerate to 5.8%.
 
On the other hand, we followed Saturday the report of the official Chinese news agency Xinhua, which dealt with the fact that Beijing has passed the Export Control Law that restricts exports of controlled substances, which allows China to act against countries that misuse export controls in a way that harms Beijing's interests, and we would like to point out that the report did not It determines which countries are the targets of that law, but it is likely that the United States will be the target of it, after it recently imposed restrictions on the international semiconductor manufacturer, which is the largest Chinese manufacturer of electronic chips.
 
On the other hand, markets are looking forward to a speech by the Fed Governor, who is scheduled to participate later today in a panel discussion on cross-border payments and digital currencies at the annual meeting of the International Monetary Fund, before we witness the release of the US housing market data with the release of a reading. The housing index by the National Association of Home Builders, which may reflect stability at its value of 83 during this month.
 
To the members of the Federal Open Market Committee, beginning with the Deputy Governor of the Federal Reserve, Richard Clarida, who is expected to speak later today about the economic expectations and monetary policy at the default conference of the American Bankers Association, before the speech of the President of the Philadelphia Federal Reserve Patrick Harker about the recovery The economy from the recession left by the Corona pandemic.

Technical analysis

 
The narrow range dominates the trading of the Australian dollar against the US dollar, which hovers around 0.7085, noting that the stochastic indicator is losing its positive momentum, waiting for the price to stimulate the resumption of the expected bearish trend for the coming period, whose next main target is at 0.6964.
 
Note that the continuation of the bearish wave depends on stability below 0.7195.
 
The expected trading range for today is between 0.7010 support and 0.7140 resistance
 
The expected general trend for today: Bearish