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Today’s Economic Calendar
We follow today in GMT:
At twelve-thirty in the afternoon:
from USA.
Producer Price Index (MoM) (July).
Producer Price Index (Excluding Food and Energy) (MoM) (July).
Then at 2:00 PM Michigan Consumer Confidence (August)
Top News in Global Markets:
Highlights of yesterday’s events:
– From the Bureau of Statistical Labor, US inflation data for July was released. Core CPI and CPI on a monthly basis were similar to expectations, while the same index came on an annual basis lower than expected.
– From the Ministry of Labor, jobless claims came in higher than expected, for the previous week.
– From the Energy Information Agency, US natural gas inventories came higher than expected for the previous week, which means a decline in demand
In the morning:
– The indicators of the Asian session were mixed, and the Japanese Nikkei index rose 269 points.
Today’s expected events:
– British Gross Domestic Product on a monthly basis for the month of June, along with the preliminary reading of the same indicator but for the second quarter of the year.
– US Producer Price Index on a monthly basis for the month of July.
– Preliminary reading of the Consumer Confidence Index issued by the University of Michigan for the month of August.
Technical Analysis
Dollar Index – 4 Hours Timeframe
Randomness still dominates the movement of the US dollar, as negative inflation data failed to direct the dollar to adopt its direction, stable in trading above the moving averages for a period of 20, 50 days.
Technically, we expect a continuation of the randomness on the index, as it heads upwards again, targeting resistance levels around 102.60, and in case of a breach, we target 103.00 points.
Gold – 1 Hour Timeframe
The yellow metal rose to 1930.14 yesterday, before returning again to 1910 dollars, after the decline in inflation on an annual basis, in addition to the rise in unemployment claims in the United States of America.
Technically, gold is trading around 1914 price, below the 100-hour moving average and the Tenkan Sen reversal line, to continue the selling pressure on gold. We expect the continuation of the decline towards 1902 support with some corrections around 1920 USD levels.
US Dow Jones – 4 Hours Timeframe
The Dow Jones Industrial index continued to move sideways over the medium-term intervals, holding below the 20- and 50-day moving averages.
Technically, the negative view remains on the index, and the index is likely to decline to target support levels of around 34,855 points.
US Crude Oil – 4 H Timeframe
Oil reached the resistance of 84.89 yesterday, as it ended the ascending series that we referred to within the ascending channel, to rebound to the level of $82.60 after the mixed US inflation data.
Technically, oil is trading below the Tenkan Sen reversal line around $82.60, and we expect it to continue falling toward the moving average of 100 at approximately $80.90.
Bitcoin – 1 Hour Timeframe
The digital currency once again declined to breach the $30,000 resistance, as prices rebounded yesterday from the $29,727 level to held below 29,500 this morning.
Technically, the digital currency is trading around the 100-hour moving average and the 50% Fibonacci retracement area, and we expect the bearish trend to continue toward the $29,250 support.
EUR/USD– 4 Hours Timeframe
The US inflation data pushed the (Euro / Dollar) pair yesterday to rise, but the resistance levels around 1.1032 quickly succeeded in pushing the price down again, coinciding with those levels with the 20- and 50-day moving averages.
Technically, the price held below the moving averages, slipping from the resistance levels, so it is likely to continue to decline on the pair, targeting the support levels around 1.09150.
GBP/USD – 1 Hour Timeframe
The (GBP/USD) rebounded from its weekly high at 1.2818 after US inflation data, to Hold at 1.2685 before today’s GDP and trade balance data from the UK.
Technically, the pair is trading around the 61.8% Fibonacci retracement area, with a breach of the Tenkan Sen reversal line, and we expect the correction to continue upwards to the levels of 1.2730 and 1.2740 dollars.
GBP/JPY– 4 Hours Timeframe
The (GBP /JPY) pair rose in the first hours of today’s trading, after rebounding from the support levels around 183.27, after trying to retest it at the end of yesterday’s trading, continuing to trade above the 20- and 50-day moving averages.
According to the technical outlook, the pair is likely to continue rising during today’s trading, targeting the resistance levels around 185.50 yen.
