Analytic reviews

Cisco share continues moving around the support level of 42.14 after the bearish price gap that formed during the past week. Where the stock fell very strongly and surpassed several support levels.

Trading stabilized below the moving averages, which supports expectations for further decline during the upcoming sessions, provided that the stability is below the 50-20 averages, which form resistance levels.

The expected trading range is between 38.32 support and 445.20 resistance

The expected overall trend for today: Neutral

The single currency, the euro, fluctuated in a narrow range sloping upward during the Asian session, to witness the resumption of its rebound from its lowest since the third of August for the sixth in seven sessions against the US dollar on the cusp of developments and economic data expected today, Thursday, by the economies of the euro area and the US economy, the largest economy In the world.

At 06:21 AM GMT, the euro pair rose against the US dollar by 0.03% to 1.1842 levels, compared to the opening levels at 1.1838, after the pair achieved its highest level during the session's trading at 1.1854, while it reached its lowest level at 1.1831.

Investors are currently awaiting by the largest economy in the euro area, Germany, the release of the producer price index reading, which is a preliminary indicator of inflationary pressures, which may show 0.1% growth versus stability at zero levels last June, and this comes before we witness the European Central Bank unveiled the minutes It's last meeting, during which it decided to keep interest rates at zero levels.

On the other hand, investors are currently awaiting the American economy for the release of the aid requests index reading for the past week on August 15th, which may reflect a decline of 33 thousand applications to 930 thousand applications compared to 963 thousand applications in the previous reading. The reading of aid requests may also appear. Continuing for the past week on the eighth of this month, a decrease by 486 thousand requests to 15.0 million requests, compared to 16,486 thousand requests in the previous reading.

This comes in conjunction with the disclosure by the largest industrial country in the world of industrial sector data with the release of the Philadelphia Industrial Index reading, which may reflect a contraction of the expansion to a value of 21.0 compared to 24.1 last July, before we witness the release of the leading indicators reading, which may It shows that the pace of growth has slowed to 1.0%, compared to 2.0% in June.

Other than that, we have just followed up on the Fed’s disclosure of the minutes of the Federal Open Market Committee’s meeting held on July 28-29 in which monetary policymakers at the Fed addressed the fact that the current situation surrounding the Corona pandemic could “severely affect Economic activity, employment and inflation are in the near term and pose significant risks to the economic outlook in the medium term. "

It is noteworthy that Federal Reserve Governor Jerome Powell stressed in the press conference held after the meeting at the time that the Fed was committed to using all its tools to support the recovery and reduce the negative repercussions of the Corona pandemic, and according to the latest figures issued by the World Health Organization, the number of cases infected with the Coronavirus increased to nearly 21.99 million and 775,893 died. People killed in 216 countries.

Technical analysis

The EUR / USD pair traded with strong negativity yesterday, reaching support for the ascending channel now, in conjunction with positive signs appearing on the stochastic indicator, noting that the SMA 50 is trying to protect the price from incurring more losses.

Thus, we believe that opportunities are available to rebound to the upside and resume the main bullish trend, which extends its next main target to 1.2070, while breaking 1.1825 represents the key to the extension of the descending wave, targeting additional negative levels that start at 1.1710 and extend to 1.1645.

The expected trading range for today is between 1.1760 support and 1.1940 resistance.

The expected general trend for today: Bullish.

Gold futures rose during the Asian session, to witness the resumption of their rebound from the lowest since July 23 for the fifth session in seven sessions, with the US dollar index resuming its rebound from the top since the third of August for the sixth session in seven sessions according to the inverse relationship between them before Economic developments and data expected today, Thursday, by the US economy, the largest in the world.

At exactly 05:38 a.m. GMT, gold futures contracts for December delivery rose 1.34% to trade at $ 1,960.30 per ounce, compared with the opening at $ 1,934.40 per ounce, knowing that the contracts started the session on a downward price gap after it was concluded Yesterday's trading at $ 1,970.30 per ounce, with the US dollar index declining 0.01% to 92.97 compared to the opening at 92.98.

Investors are currently awaiting the American economy to see the release of the aid claims index reading for the past week on August 15th, which may reflect a decline of 33 thousand requests to 930 thousand applications compared to 963 thousand applications in the previous reading, and the reading of continuous aid requests for last week may also appear. On the eighth of this month, a decrease of 486 thousand applications to 15.0 million applications compared to 16,486 thousand applications in the previous reading.

This comes in conjunction with the disclosure by the largest industrial country in the world of industrial sector data with the release of the Philadelphia Industrial Index reading, which may reflect a contraction of the expansion to a value of 21.0 compared to 24.1 last July, before we witness the release of the leading indicators reading, which may It shows that the pace of growth has slowed to 1.0%, compared to 2.0% in June.

Other than that, we have just followed up on the Fed’s disclosure of the minutes of the Federal Open Market Committee’s meeting held on July 28-29 in which monetary policymakers at the Fed addressed the fact that the current situation surrounding the Corona pandemic could “severely affect Economic activity, employment and inflation are in the near term and pose significant risks to the economic outlook in the medium term. "

It is noteworthy that Federal Reserve Governor Jerome Powell stressed in the press conference held after the meeting at the time that the Fed was committed to using all its tools to support the recovery and reduce the negative repercussions of the Corona pandemic, and according to the latest figures issued by the World Health Organization, the number of cases infected with the Coronavirus increased to nearly 21.99 million and 775,893 died. People killed in 216 countries.

Technical analysis

The price of gold fell strongly yesterday to break the level of 1967.90 and directly touch the level of 1934.86, which forms a strong support ground in front of the price, noting that the price starts today positively to move away from the aforementioned support, which indicates that the price is on its way to start an upward wave and compensate for the losses it incurred in Past sessions.

From here, we expect to witness positive trading in the upcoming sessions supported by the positivity of the stochastic indicator, noting that our targets start at 1967.90 and extend to 2008.80, while breaking 1934.86 represents the key to incurring additional losses that reach 1901.80.

The expected trading range for today is between 1920.00 support and 2000.00 resistance.

The expected general trend for today: Bullish.

The US dollar fluctuated in a narrow range that tends to decline during the Asian session, to witness the resumption of its rebound from its high since July 23 for the fourth session in six sessions against the Japanese yen amid scarcity of economic data by the Japanese economy before the developments and the expected economic data today, Thursday, by the economy. The US is the largest economy in the world.

At exactly 07:56 am GMT, the US dollar against the Japanese yen fell by 0.02% to 106.10 levels compared to the opening levels at 106.12 after the pair achieved its lowest level during the session's trading at 105.98, while it achieved its highest at 106.22.

Investors are currently awaiting the American economy to see the release of the aid claims index reading for the past week on August 15th, which may reflect a decline of 33 thousand requests to 930 thousand applications compared to 963 thousand applications in the previous reading, and the reading of continuous aid requests for last week may also appear. On the eighth of this month, a decrease of 486 thousand applications to 15.0 million applications compared to 16,486 thousand applications in the previous reading.

This comes in conjunction with the disclosure by the largest industrial country in the world of industrial sector data with the release of the Philadelphia Industrial Index reading, which may reflect a contraction of the expansion to a value of 21.0 compared to 24.1 last July, before we witness the release of the leading indicators reading, which may It shows that the pace of growth has slowed to 1.0%, compared to 2.0% in June.

Other than that, we have just followed up on the Fed’s disclosure of the minutes of the Federal Open Market Committee’s meeting held on July 28-29 in which monetary policy makers at the Fed addressed the fact that the current situation surrounding the Corona pandemic could “severely affect Economic activity, employment and inflation are in the near term and pose significant risks to the economic outlook in the medium term. "

It is noteworthy that Federal Reserve Governor Jerome Powell stressed in the press conference held after the meeting at the time that the Fed was committed to using all its tools to support the recovery and reduce the negative repercussions of the Corona pandemic, and according to the latest figures issued by the World Health Organization, the number of cases infected with the Coronavirus increased to nearly 21.99 million and 775,893 died. People killed in 216 countries.

Technical analysis

The dollar against the yen was unable to break the level of 105.20 yesterday, to rebound strongly and approaching the test of the pivotal resistance 106.44, noting that the stochastic indicator shows overbought signs now, which makes us expect to witness negative trading in the upcoming sessions, and targets begin to test 105.20.

Therefore, the overall bearish scenario will remain valid for the upcoming period, unless the price rallies to breach 105.20 and build above it.

The expected trading range for today is between 105.30 support and 106.60 resistance.

The expected general trend for today: overall bearish.

Gold Spot

The price of gold is correcting down for two reasons. Firstly, the asset is technically overbought, secondly, there’s an increase in demand for stocks with potentially bigger profits in the future. Expect that the gold to remain under $2,000 per ounce.

Technical side:

The price is below the middle Bollinger band, below SMA 5, but above SMA 14. Moving averages intersect and suggest selling. RSI is below the 50% level and is turning up. Stoch are in the oversold zone and uninformative.

Gold Spot rate online: monitor the price movement in real time.

Trading recommendations:

If the price falls below 1927.50, it will likely go further down to 1875.00.

EURJPY

The overall trend is upward. A descending truncated H2 level pattern has formed. Awesome Oscillator indicates a bullish divergence. The currency pair is trading in the range of 365 and 135 moving averages.

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

Trading recommendations:

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

Stop Loss: 125.34.

Target levels: 126.46; 127.40.

#BA

The support level of 168.80 continues to hold back sellers. Awesome Oscillator indicates a bullish divergence, while Stochastic Oscillator indicates an oversold condition.

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

Trading recommendations:

Buy when an ascending wave pattern is formed.

Stop Loss under the support level of 168.80.

Target levels: 189.26; 197.20.

Wednesday, August 19th, today’s news—S&P 500, an index that includes stocks of large American companies, hit a new all-time high, trading closed at 3,389.78. Asian and European markets are behind, US Treasury yields and the dollar weaken ahead of the Fed's meeting minutes. The price of Brent oil is $45.08, WTI—$42.78. EUR/USD is at 1.1940, GBP/USD—1.3245, gold is $2,003.30 per ounce. Read the daily selection of analytical reviews from Grand Capital experts to navigate the market during a time of volatility.

EURUSD technical analysis

The pair broke out of the range above 1.1900 on positive US economic data, which is currently playing against the dollar, boosting the demand for risk assets and sell-offs of the US Treasury bonds. Keep track of the price movement in real time.

Trading recommendations: a downward correction to 1.1900 is possible. If the pair holds above this level, it will continue to grow towards 1.1000.

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AUDCHF analysis

The currency pair is trading at the upper bound of the descending price channel. An ascending truncated H2 level pattern has formed. Awesome Oscillator indicates a bearish divergence, while Stochastic Oscillator indicates an overbought condition. Keep track of the rate changes in real time.

Trading recommendations: sell strictly when a descending wave pattern is formed, where the wave (A) breaks through the inclined channel of the ascending H2 level pattern.

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Trading ideas for BYD (HKEX)

The overall trend is upward. A false breakout of the support level of 70.30 has formed, after which a hammer (a reversal candlestick pattern) has formed. Awesome Oscillator indicates a bullish divergence, while Stochastic Oscillator has been indicating an oversold condition for a long time.

Trading recommendations: buy when a 1-2-3 ascending pattern is formed; Stop Loss: local minimum; target levels: 77.56, 89.50.

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Useful info and online charts

Visit the new section on Grand Capital website to monitor the rate changes of your preferred instruments and get useful information to help you decide on a trading strategy.

^{*Trading recommendations offered by analysts do not constitute a solicitation. Before starting to trade on currency exchange markets, please make sure that you understand the risks connected with the use of leverage and that you have sufficient level of training.}

EURUSD

The pair broke out of the range above 1.1900 on positive US economic data, which is currently playing against the dollar, boosting the demand for risk assets and sell-offs of the US Treasury bonds.

Technical side:

The price is above the middle Bollinger band, below SMA 5, but above SMA 14. RSI is coming out of the overbought zone. Stoch are also declining.

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

Trading recommendations:

A downward correction to 1.1900 is possible. If the pair holds above this level, it will continue to grow towards 1.1000.

AUDCHF

The currency pair is trading at the upper bound of the descending price channel. An ascending truncated H2 level pattern has formed. Awesome Oscillator indicates a bearish divergence, while Stochastic Oscillator indicates an overbought condition.

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

Trading recommendations:

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

Stop Loss: beyond the local maximum of the H2 level pattern.

Target levels: 0.6506; 0.6450.