Analytic reviews

The US dollar fluctuated in a narrow range that tends to decline during the Asian session, to witness its retracement of the second session from its high since September 15 against the Japanese yen following the developments and economic data that they followed on the Japanese economy and on the cusp of developments and economic data expected today, Thursday, by the US economy, which Actions for the second half include the semiannual testimony of Fed Governor Jerome Powell and US Treasury Secretary Stephen Mnuchin to Congress in Washington.

At 07:17 AM GMT, the US dollar against the Japanese yen decreased by 0.07% to 105.32 levels compared to the opening levels at 105.40, after the pair achieved its lowest level during the session's trading at 105.29, while it achieved its highest at 105.48.

The Bank of Japan unveiled the minutes of its meeting held on July 14-15, during which it decided to keep interest rates negative at 0.10%, while also staying committed to directing the 10-year government bond yield at zero and confirming that it will be taken. Additional steps for monetary easing without hesitation if necessary, and this came before the Japanese central bank unveiled the annual core reading of the consumer price index, which showed stability at zero levels, with little change from what it was in last July.

On the other hand, investors are currently awaiting the US economy for the release of the aid claims index reading for the past week on September 18th, which may reflect a decline of 15,000 requests to 845,000 applications compared to 860,000 requests in the previous weekly reading. The continuing aid for the past week, on the 11th of this month, decreased by 289 thousand applications to 12,339 thousand applications compared to 12,628 thousand applications.

This coincides with the launch of the second half of the bi-annual certification of Federal Reserve Governor Jerome Powell as well as with Treasury Secretary Stephen Mnuchin before the Senate Banking Committee on the "CARES" Act, and this comes hours after Powell testified before the House of Representatives And through which he threw the ball in the Congress court to provide support to companies affected by the aftershocks of the Corona pandemic.

In another context, the markets are looking to reveal the housing market data with the release of the new home sales index reading, which may indicate a 4.0% decline to about 890 thousand homes compared to a 16.6% rise at 901 thousand homes in July, leading to the speech of the Federal Open Market Committee member and chairman New York Federal Reserve John Williams Opening remarks at the New York Fed conference on economic inequality.

Technical analysis

The dollar versus yen pair achieved a clear breach of 105.20 and settled above it, which leads the price to achieve more expected gains during the coming period, paving the way for heading towards 106.00 - 106.44 levels as the next major stops.

Therefore, a bullish bias will be expected for today, supported by moving above the SMA 50, bearing in mind that breaking 105.20 will stop the suggested ascend and pressurize the price to return to the main bearish path again.

The expected trading range for today is between 104.80 support and 106.20 resistance.

The expected general trend for today: Bullish.

Wednesday, September 23rd, today’s news—business activity in the eurozone halts growth amid the new pandemic outbreak, France hits a four-month low. The dollar is stronger, the US markets are mixed ahead of the Fed's head speech and new economic data. The price of Brent oil is $42.08, WTI—$40.09. EUR/USD is at 1.1712, GBP/USD—1.2738, gold is $1,893.40 per ounce.

The Australian dollar fluctuated in a narrow range that tends to decline during the Asian session, to witness its lowest since August 12 against the US dollar, after the economic developments and data that they followed on the Australian economy and on the cusp of economic developments and data expected today, Wednesday, by the US economy, which includes the testimony of a bank governor Federal Reserve Jerome Powell to Congress and members of the Federal Open Market Committee speech.

At exactly 04:41 AM GMT, the Australian dollar against the US dollar fell 0.56% to 0.7131 levels, compared to the opening levels at 0.7171, which is the highest level for the pair during the session's trading, while the pair achieved its lowest level in six weeks at 0.7126.

We have continued to unveil the preliminary readings of the Industrial and Service Purchasing Managers' Indicators Markit from Australia, which showed the expansion of the industrial sector to a value of 55.5 compared to 53.6 in August, and the expansion of the service sector to a value of 50.0 against a contraction of 49.0 in August. This came before the retail sales reading showed a decline of 4.2% versus a 3.2% rise in last July.

Other than that, we just followed the report on the fact that economists at Westpac are expecting the Reserve Bank of Australia to cut short-term reference interest rates by 15 basis points to 0.10% during the next meeting of the Australian Central Bank, which is scheduled to take place on the sixth of October. / This coming October.

This comes hours after the Assistant Governor of the Reserve Bank of Australia, in charge of the Risk Management Committee, Jay Debel, gave a speech on Tuesday under the title "The Australian Economy and Monetary Policy" via satellite at the Australian Industry Group conference in which he expressed that the decline in the Australian dollar will benefit The economy and that the RBA is closely watching "mixed" experimental evidence of negative rates.

Yesterday, the Assistant Governor of the Reserve Bank of Australia in charge of the Risk Management Committee, Debel, stated that the policy options for reducing the target return and the rate of facilitating financing for time are an option for the Australian central bank and that the Australian central bank is evaluating other policy options, explaining that increasing the facilitation of term financing is a great easing of monetary policy, adding Intervention in the foreign exchange market is ineffective in the current circumstances.

On the other hand, investors are awaiting the American economy to reveal the housing market data with the release of the house price index reading, which may indicate a slowdown in growth to 0.4% compared to 0.9% last June, in conjunction with the speech of a member of the Federal Open Market Committee and the president of the Bank Cleveland Federal Reserve Loretta Meester at the Chicago Satellite Payments Symposium.

This comes before we witness the unveiling of the preliminary reading of the Markit Industrial and Service Purchasing Managers Index on America, which may reflect the shrinking of the industrial sector in the largest industrial country in the world to a value of 52.5 compared to 53.1 in the previous reading for August, and the expansion of the service sector to It was worth 54.5, compared to 55.0 in August.

Up to the testimony of Federal Reserve Governor Jerome Powell before the House Select Committee in Washington, and in conclusion, Vice Governor of the Federal Reserve and a member of the Federal Open Market Committee Randall Quarles is expected to speak about the economic outlook at the Institute of International Bankers via satellite. Yesterday it was reported that the ball is in the court of Congress to provide support to companies affected by the Corona pandemic.

Technical analysis

The Australian dollar against the US dollar managed to confirm the breach of the 0.7190 level, to complete the formation of the double top pattern that appears on the image, reinforcing expectations for the continuation of the bearish trend in the intraday term, reminding you that our awaited targets start at 0.7100 and extend to 0.6964.

The SMA 50 continues to support the suggested descending wave, keeping in mind that breaching 0.7190 will stop the current negative pressure and lead the price to try to restore the main bullish trend again.

The expected trading range for today is between 0.7050 support and 0.7190 resistance.

The expected general trend for today: Bearish.

Gold futures contracts decreased by nearly one percent during the Asian session amid the rise of the US dollar index to the highest since the 27th of July, according to the inverse relationship between them on the cusp of developments and economic data expected today, Wednesday, by the US economy, which includes the testimony of Federal Reserve Governor Jerome Powell in front of Congress and amid growing concern over a second wave of Coronavirus and tensions between Washington and Beijing.

At exactly 06:02 a.m. GMT, gold futures contracts for December delivery fell 0.86% to trade at $ 1,888.90 an ounce compared to the opening at $ 1,905.10 an ounce, knowing that the contracts started the session on a downward price gap after it was concluded Yesterday's trading at $ 1,907.60 an ounce, with the US dollar index rising 0.20% to 94.16 compared to the opening at 93.98.

Investors are awaiting the American economy to reveal the housing market data with the release of the house price index reading, which may indicate a slowdown in growth to 0.4% compared to 0.9% last June, in conjunction with the speech of a member of the Federal Open Market Committee and President of the Cleveland Federal Reserve Bank. Loretta Meester at the Chicago Satellite Payments Symposium.

This comes before we witness the unveiling of the preliminary reading of the Markit Industrial and Service Purchasing Managers Index on America, which may reflect the shrinking of the industrial sector in the largest industrial country in the world to a value of 52.5 compared to 53.1 in the previous reading for August, and the expansion of the service sector to It was worth 54.5, compared to 55.0 in August.

Down to the testimony of Federal Reserve Governor Jerome Powell before the House Select Committee in Washington, and we would like to point out that Powell reported yesterday in the first half of his semi-annual testimony before Congress, specifically before the House Financial Services Committee, that the Federal Reserve had relaxed a number of banking regulations Temporarily and he's open to doing more of that.

Powell also noted in the first half of his testimony, which is expected to complete the second half of it tomorrow, Thursday, in front of the Senate Banking Committee, along with Treasury Secretary Stephen Mnuchin, about the "CARES" law, because small banks may bear a greater burden and be exposed to greater things such as mortgages, adding The lack of response in the commercial real estate market was researched by borrowers, explaining that it is difficult to find a place to have an impact.

In the same context, Powell stated that the Fed does not see demand for very small loans by individual borrowers within the Main Street lending program, and that corporate bond purchases support financial conditions in the credit market.

Technical analysis

Gold price closed the daily candle below the level of 1901.80, which supports the continuation of our bearish expectations effectively during the upcoming period, paving the way for us to head towards our next negative target that reaches 1860.90.

Consequently, the negative scenario will remain valid and effective, supported by the negative pressure formed by the EMA50, noting that breaching 1901.80 then 1911.00 will stop the expected decline and push the price to achieve intraday gains that start by testing 1934.86 areas before determining the next trend's fate more precisely.

The expected trading range for today is between 1870.00 support and 1911.00 resistance.

The expected general trend for today: Bearish.

The US dollar fluctuated in a narrow range slanting to an upside during the Asian session, to witness its retracement for the third consecutive session from the lowest since March 12 against the Japanese yen following the developments and economic data that they followed on the Japanese economy and on the cusp of economic developments and data expected today, Wednesday, by the economy. The US Congress, which includes the testimony of Federal Reserve Governor Jerome Powell before the US Congress.

At 07:15 AM GMT, the US dollar against the Japanese yen rose by 0.18% to 105.12 levels compared to the opening levels at 104.93, after the pair achieved its highest level during the session's trading at 105.20, while it reached its lowest level at 104.88.

We have followed up on the disclosure of the preliminary reading of the manufacturing PMI by Markit on Japan, which showed the contraction of the deflation to a value of 47.3 compared to 47.2 in August, below expectations of 48.0, and this came before we witness the Japanese economy, the third-largest industrial country. Globally, the index of all industrial activities was released, which showed growth slowing to 1.3%, in line with expectations, compared to 6.8% in June.

On the other hand, investors are awaiting the American economy to reveal the housing market data with the release of the house price index reading, which may indicate a slowdown in growth to 0.4% compared to 0.9% last June, in conjunction with the speech of a member of the Federal Open Market Committee and the president of the Bank Cleveland Federal Reserve Loretta Meester at the Chicago Satellite Payments Symposium.

This comes before we witness the unveiling of the preliminary reading of the Markit Industrial and Service Purchasing Managers Index on America, which may reflect the shrinking of the industrial sector in the largest industrial country in the world to a value of 52.5 compared to 53.1 in the previous reading for August, and the expansion of the service sector to It was worth 54.5, compared to 55.0 in August.

Up to the testimony of Federal Reserve Governor Jerome Powell before the House Select Committee in Washington, and in conclusion, Vice Governor of the Federal Reserve and a member of the Federal Open Market Committee Randall Quarles is expected to speak about the economic outlook at the Institute of International Bankers via satellite. Yesterday it was reported that the ball is in the court of Congress to provide support to companies affected by the Corona pandemic.

Technical analysis

The dollar against the yen continued to rise to test the pivotal resistance 105.20, which constitutes a strong barrier against the price, accompanied by the stochastic indicator losing positive momentum and the appearance of clear overbought areas, while the MA 50 forms negative pressure against the price.

Thus, we believe that opportunities are available to bounce to the downside and resume the expected bearish trend in the intraday and short term terms, whose next main target is at 103.65, while achieving it requires stability below 105.20.

The expected trading range for today is between 104.30 support and 105.50 resistance.

The expected general trend for today: Bearish.

 Sberbank's stock was unable to breach the resistance 233.10, trying to return to the bullish channel from which it had exited during the past two weeks, and which appears in the chart accordingly.

 The price is trying to end the descending path and return to the bullish path again. Especially after moving above the moving averages, especially the 50 average.

The current price action takes place between the support level 220.10 and the resistance level 223.10 over the intermediate period which will be the main targets of the price action.

 The moving averages -50-20-7 are below the price near 221.80 and add pressure on the price to continue rising further and breach the resistance. 

General direction of movement: An upward path.

EURNZD

The overall trend is downward. The currency pair is trading in the range of 365 and 135 moving averages. The ascending H2 level pattern is truncated, it ended with the breakout of the inclined channel (aC), which resulted in the formation of a start fractal below the 135 moving average.
A breakout of the start fractal will result in the formation of a descending wave pattern within the overall downtrend. Awesome Oscillator indicates a bearish divergence, while Stochastic Oscillator signals overbought condition.

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

Trading recommendations:

Sell on the breakout of the 1.7584 start fractal.

Stop Loss: 1.7707.

Target levels: 1.7470; 1.7332.

#ABC

The overall trend is upward. The price pivot zone of 92.56 restrains sellers. Awesome Oscillator indicates a bullish divergence, while Stochastic Oscillator indicates an exit from the oversold zone and the moving averages of the indicator are directed upwards. A breakout of the resistance level of 97.87 will result in the formation of a 1-2-3 ascending pattern within the overall uptrend.

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

Trading recommendations:

Buy above 97.87.

Stop Loss: 92.56.

Target: 104.15;

NZDUSD 

The pair is trading at the neckline of the "double top" reversal pattern, remaining under pressure following the RBNZ monetary policy decision, while the US dollar gains as a safe haven currency.

Technical side:

The price is located below the middle Bollinger band, below SMA 5 and SMA 14. RSI has entered the oversold zone. Stoch are also in it.

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

Trading recommendations:

Sell the pair after it crosses the level of 0.6600 with a probable drop to 0.6515.

Tuesday, September 22nd, today’s news—major aircraft maker Airbus may cut up to 15,000 jobs worldwide. European markets are recovering after the pandemic-related negativity, Germany's recovery is to shrink 5.2% this year, the dollar is stronger as a safe haven currency. The price of Brent oil is $41.98, WTI—$40.03. EUR/USD is at 1.1738 GBP/USD—1.2793, gold is $1,908.00 per ounce.