Analytic reviews

The Australian dollar fluctuated in a narrow range that tends to decline during the Asian session, to witness its lowest since August 26 against the US dollar, following the speech of the Assistant Governor of the Reserve Bank of Australia, in charge of the Risk Management Committee, Jay Debel and on the cusp of economic developments and data expected today, Tuesday, by the American economy. The largest economy in the world, which includes the testimony of Federal Reserve Governor Jerome Powell to Congress.

At 04:28 GMT, the Australian dollar against the US dollar fell 0.01% to 0.7223 levels, compared to opening levels at 0.7224, after the pair achieved its lowest level in four weeks at 0.7192, while its highest during the session’s trading at 0.7235.

We have followed up on Jay Dibel, Assistant Governor of the Reserve Bank of Australia, in charge of the Risk Management Committee, giving a speech under the title "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 Australian Central Bank Closely watched "mixed" experimental evidence of negative rates.

The Assistant Governor of the Reserve Bank of Australia, in charge of the Risk Management Committee, Debel also stated that the policy options for reducing the target return and the rate of facilitating financing for the term 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 US economy, the largest industrial country in the world, for the release of the Richmond Industrial Index, which may reflect a contraction of the expansion to a value of 12 compared to 18 last August, in conjunction with the disclosure of housing market data with the release of the annual reading of the index. House prices, which may show a slowdown in growth to 2.4% to about 6.05 million homes, compared to 24.7% at 5.86 million homes last July.

This comes before we witness the first half of the semi-annual testimony of Federal Reserve Governor Jerome Powell before the US Congress, specifically before the House Financial Services Committee in Washington on the "CARES" Act, and Powell is expected to testify before the House Select Committee tomorrow. Wednesday, about the economic effects of the Corona pandemic, before he gave the second half of his testimony, tomorrow, Thursday, to the Senate Banking Committee.

We would like to point out that Treasury Secretary Stephen Mnuchin will also deliver his testimony on Thursday, with Powell, about the CARES Act before Congress. The repercussions of the Corona pandemic, with his assertion that there is a need for more fiscal and monetary policy to prevent the health crisis from causing long-term damage to the economy.

Technical analysis

The Australian dollar against the US dollar achieved a strong breakout of 0.7250 and settled below it, which turned the intraday path to the downside, on its way to visit 0.7100 and then 0.6964 levels, as major negative targets.

Thus, the bearish bias will be favored for today, supported by the SMA 50, noting that the expected decline will remain valid unless 0.7325 is breached and stability above it.

The expected trading range for today is between 0.7140 support and 0.7280 resistance.

The expected general trend for today: Bearish.

The single currency, the euro, fluctuated in a narrow range that tends to decline during the Asian session against the US dollar due to the developments and economic data expected today, Tuesday, by the economies of the euro area and the US economy, the largest in the world, which includes the first half of the semi-annual testimony of Federal Reserve Governor Jerome Powell before Congress American.

At 06:35 AM GMT, the euro pair fell against the US dollar by 0.09% to 1.1760 levels, compared to the opening levels at 1.1771, after the pair achieved its lowest level during the session's trading at 1.1753, while it achieved its highest at 1.1774.

The markets are looking to the economies of the euro area as a whole to reveal a reading of consumer confidence, which may reflect the stability of the contraction at a value of 15 during September, otherwise, we followed yesterday the European Central Bank Governor Christine Lagarde expressed that the current uncertainty requires careful evaluation. For the data received, including the exchange rate for the euro, and that the European Central Council believes that the economy still needs support.

On the other hand, investors are awaiting the US economy, the largest industrial country in the world, for the release of the Richmond Industrial Index, which may reflect a contraction of the expansion to a value of 12 compared to 18 last August, in conjunction with the disclosure of housing market data with the release of the annual reading of the index. House prices, which may show a slowdown in growth to 2.4% to about 6.05 million homes, compared to 24.7% at 5.86 million homes last July.

This comes before we witness the first half of the semi-annual testimony of Federal Reserve Governor Jerome Powell before the US Congress, specifically before the House Financial Services Committee in Washington on the "CARES" Act, and Powell is expected to testify before the House Select Committee tomorrow. Wednesday, about the economic effects of the Corona pandemic, before he gave the second half of his testimony, tomorrow, Thursday, to the Senate Banking Committee.

We would like to point out that Treasury Secretary Stephen Mnuchin will also deliver his testimony on Thursday, with Powell, about the CARES Act before Congress. The repercussions of the Corona pandemic, with his assertion that there is a need for more fiscal and monetary policy to prevent the health crisis from causing long-term damage to the economy.

It is reported that the Federal Open Market Committee meeting held last week on September 15-16, during which interest rates were kept between zero and 0.25%, the program to purchase Treasury bonds by $ 80 billion per month and mortgage bonds by $ 40. At least monthly, with the disclosure at the time of the expectations of members of the Federal Commission for growth rates, inflation and unemployment, in addition to the future of interest rates for the next three years.

Technical analysis

The EUR / USD pair succeeded in reaching a difference of a few points from our awaited target at 1.1720, and some slight bullish tendency appears affected by the positivity of the stochastic indicator, noting that the price is moving within the descending corrective descending channel that appears in the image, which supports the chances of surpassing the aforementioned level and paving the way for the trend towards Next corrective level up to 1.1540.

From here, we expect the bearish tendency to continue during the upcoming sessions, supported by the negative pressure formed by the MA 50, bearing in mind that the expected decline will remain intact unless the price pushes to breach 1.1860 then 1.1910 and hold above it.

The expected trading range for today is between 1.1670 support and 1.1840 resistance.

The expected general trend for today: Bearish.

Gazprom settled below the support level of 186.00, as it continues to move within the 

descending channel that appears on the chart.

The price is now moving below the 20-50 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 exited from the overbought area and returns to the oversold zone and the movement within a bearish path will therefore press the price for further decline.

The price action will be between the support level 158.75 and the resistance level 202.20.

The general direction of the movement is bearish.

Futures contracts for gold prices fluctuated in a narrow range that tends to rise during the Asian session, to witness its rebound for the second session from the lowest since August 12, amid the dollar index rebounding for the second session from its highest since the same day according to the inverse relationship between them on the cusp of developments and expected economic data today Tuesday by the US economy, the largest economy in the world, which includes the first half of Fed Governor Jerome Powell's semi-annual testimony before Congress and amid growing concern over a second wave of Coronavirus.

At exactly 06:06 AM GMT, gold futures contracts for December delivery rose 0.13% to trade at $ 1,920.50 an ounce, compared to the opening at $ 1,918.10 an ounce, knowing that the contracts started the session on a rising price gap after it closed Yesterday's trading at $ 1,910.60 an ounce, with the US dollar index declining 0.03% to 93.53 compared to the opening at 93.56.

Investors from the US economy, the largest industrial country in the world, are awaiting the release of the Richmond Industrial Index reading, which may reflect a contraction of the expansion to a value of 12 compared to 18 last August, in conjunction with the disclosure of housing market data with the release of the annual home price index reading, which It may show a slowdown in growth to 2.4% to about 6.05 million homes, compared to 24.7% at 5.86 million homes last July.

This comes before we witness the first half of the semi-annual testimony of Federal Reserve Governor Jerome Powell before the US Congress, specifically before the House Financial Services Committee in Washington on the "CARES" Act, and Powell is expected to testify before the House Select Committee tomorrow. Wednesday, about the economic effects of the Corona pandemic, before he gave the second half of his testimony, tomorrow, Thursday, to the Senate Banking Committee.

We would like to point out that Treasury Secretary Stephen Mnuchin will also deliver his testimony on Thursday, with Powell, about the CARES Act before Congress. The repercussions of the Corona pandemic, with his assertion that there is a need for more fiscal and monetary policy to prevent the health crisis from causing long-term damage to the economy.

Technical analysis

The price of gold faced strong negative pressure, as we mentioned in our technical updates yesterday, and it made attempts to break the 1901.80 level, to show signs of a negative technical combination indicating that the price is on its way to achieve further decline during the coming period, noting that the confirmation of a breach of 1901.80 will push the price to 1860.90 As the next negative terminal.

Thus, the bearish trend will be expected in the intraday and short term, taking into consideration that breaching 1934.86 will stop the expected decline and lead the price to recover and restore the main bullish trend again.

The expected trading range for today is between 1880.00 support and 1935.00 resistance.

The expected general trend for today: Bearish.

The US dollar fluctuated in a narrow range tilted towards a decline during the Asian session, to reflect the resumption of the marches of losses that stopped yesterday for the first time six sessions against the Japanese yen amid scarce economic data at the beginning of this week by the Japanese economy due to the holiday for the Day of Respect for the Elderly yesterday and the holiday of the Autumn Equinox today. Tuesday in Japan, and on the cusp of economic developments and data anticipated by the US economy, the largest economy in the world, which Fed Governor Jerome Powell testified before Congress.

At 06:56 AM GMT, the US dollar against the Japanese yen fell by 0.11% to 104.54 levels compared to opening levels at 104.65, after the pair achieved its lowest level during the session’s trading at 104.46, while it achieved its highest at 104.75.

Investors from the US economy, the largest industrial country in the world, are awaiting the release of the Richmond Industrial Index, which may reflect a contraction of the expansion to a value of 12 versus 18 in August, in conjunction with the disclosure of housing market data with the release of the annual home price index reading, which may Growth slowed down to 2.4% to about 6.05 million homes, compared to 24.7%, at 5.86 million homes in July.

This comes before we witness the first half of the semi-annual testimony of Federal Reserve Governor Jerome Powell before the US Congress, specifically before the House Financial Services Committee in Washington on the "CARES" Act, and Powell is expected to testify before the House Select Committee tomorrow. Wednesday, about the economic effects of the Corona pandemic, before he gave the second half of his testimony, tomorrow, Thursday, to the Senate Banking Committee.

We would like to point out that Treasury Secretary Stephen Mnuchin will also deliver his testimony on Thursday, with Powell, about the CARES Act before Congress. The repercussions of the Corona pandemic, with his assertion that there is a need for more fiscal and monetary policy to prevent the health crisis from causing long-term damage to the economy.

It is reported that the Federal Open Market Committee meeting held last week on September 15-16, during which interest rates were kept between zero and 0.25%, the program to purchase Treasury bonds by $ 80 billion per month and mortgage bonds by $ 40. At least monthly, with the disclosure at the time of the expectations of members of the Federal Commission for growth rates, inflation and unemployment, in addition to the future of interest rates for the next three years.

In the same context, we followed last Wednesday the press conference held by Federal Reserve Governor Powell after the end of the meeting to comment on the decisions and directions of the committee, which included expectations to remain the leader at zero levels until at least 2023, in which Powell expressed the importance of the fiscal stimulus policy to support the economy Amidst confirming the Fed’s commitment to using all its tools to support the recovery.

Technical analysis

The dollar against the yen provided positive trading yesterday, approaching the 105.00 barrier, noting that the stochastic indicator lost its positive momentum to reach overbought areas, waiting for the price to stimulate the resumption of the expected downside trend in the intraday and short term, which mainly targets 103.65.

Thus, the bearish trend scenario will remain effective unless the price rallies to breach 105.20 and build above it.

The expected trading range for today is between 103.50 support and 105.00 resistance.

The expected general trend for today: Bearish.

#GOOGLE

A bullish divergence has formed on Awesome Oscillator. Stochastic Oscillator indicates an oversold condition. The overall trend is upward.

#GOOGLE 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 pattern.

Stop Loss: 1402.00.

Target levels: 1552.0; 1650.0.

EURUSD

The pair dropped to the lower limit of the range 1.1740–1.1915 amid concerns over new coronavirus restrictions in several countries around the world. The US dollar gains support as a safe haven currency. This situation will persist as long as the second wave of the pandemic hangs over the countries.

Technical side:

The price is located below the middle Bollinger band, below SMA 5 and SMA 14. RSI is below the 50% level and is declining. Stoch are below the 50% level and are turning down.

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

Trading recommendations:

Sell the pair locally after it drops below 1.1740 with a likely decline to 1.1700.

EURCAD
The price pivot zone of 1.5668 holds back buyers. A bearish divergence has formed on Awesome Oscillator, and Stochastic Oscillator signals an overbought condition. The ascending H8 level pattern is currently truncated. The wave C H8 (H2 level pattern) is also truncated, a reversal wave pattern will probably form there.

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

Trading recommendations:

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

Stop Loss: beyond the price pivot zone of 1.5668 (or local maximum).

Target levels: 1.5530; 1.5450.

Monday, September 21st, today’s news—stocks of European and Asian companies are lower amid the rising COVID-19 case rate, new lockdown measures are expected. American markets and the dollar are also falling ahead of the speeches by the Fed officials this week, the oil prices are under pressure due to the possible reopening of production in Libya, but supported by the hurricane in the Gulf of Mexico. The price of Brent oil is $42.25, WTI—$40.37. EUR/USD is at 1.1783 GBP/USD—1.2856, gold is $1,937.95 per ounce.

EURUSD

The pair is trading in the range of 1.1750–1.1915. The pair may resume growth if the ECB head Christine Lagarde offers an optimistic outlook in her speech.

Technical side:

The price is above the middle Bollinger band, above SMA 5 and SMA 14. RSI is above the 50% level and is moving horizontally. Stoch are also above the 50% and are turning up.

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

Trading recommendations:

Buy the pair locally if it holds above 1.1855 with a likely growth to 1.1915.