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Today’s Economic Calendar
GMT we follow today:
– At exactly six o’clock in the morning, the British consumer price index is released on an annual basis for the month of June, and the core consumer price index (excluding food and energy).
– At 9:00 am, the European CPI in the eurozone on an annual basis for the month of June, and the core CPI as well.
– At 12:30 noon, the US Home Construction Index for June will be released.
-Finally, at 2:30 pm, the US Crude Oil Inventories report.
Top News in Global Markets:
Yesterday’s main events:
– Canadian CPI was released, and the result was lower than expected on a monthly basis for June, and also lower than expected for the Core CPI.
– In the US, the change in retail sales was released on a monthly basis for the month of June, and the result was lower than expected, and the core retail sales index was also lower than expected.
– From the Fed, the US Industrial Production Index was released, and the result was lower than expected on a monthly basis for the month of June.
-The New York session indices advanced, as the Dow Jones Industrial INDEX rose by 366 points, the Standard & Poor’s 500 rose by 32 points, and the Nasdaq, in turn, rose by 108 points.
And in the morning:
– New Zealand Consumer Price Index for the second quarter of the year was released, and the result was higher than expected.
– UK CPI and core CPI came in below expectations, on an annual basis for June.
– The performance of the Asian session indices varied, as the Japanese Nikkei index advanced by 402 points, while the Hang Seng index in Hong Kong fell by 100 points.
During today’s sessions, we await:
– The final reading of the European consumer price index on an annual basis for the month of June.
– Starting Home Construction Index in the US for the month of June.
– The weekly report of US crude inventories.
Technical Analysis
Dollar Index – 4 Hours Timeframe
The support levels around 99.23 succeeded in stopping the price falling on the US Dollar Index, to rebound upwards in a corrective move over the medium-term, trading above the 20-day moving average.
Technically, the corrective rise is likely to continue during today’s trading, targeting resistance levels around 99.92, and in case of a breach, we target 100.50 points.
Gold – 1 Hour Timeframe
Yesterday, the yellow metal rose nearly 300 points, after weak US retail sales data, as the gold price reached $1984.40.
Technically, gold is trading above the 100-hour moving average after it succeeded in breaching the $1976 resistance. We expect the rise to continue if the current $1984 resistance is breached, to then target $2002.
US Dow Jones – 4Hours Timeframe
The Dow Jones industrial index continued to rise, now trading around the 35,000 resistance levels that we mentioned yesterday, and settling above the 20-day moving average after basing on it and receiving momentum around it.
Technically, we expect a further rise on the index during today’s trading, targeting the next resistance levels around 35,355 points.
US Crude Oil – 1H Timeframe
Yesterday, Crude Oil rose nearly 200 points to reach $75.96, as the inflationary pressures in the US economy began to recede.
Technically, oil is trading above the 50% Fibonacci retracement area and the 100-hour moving average. Despite this, the bullish momentum for oil is still fading, and we expect it to decline to 38% Fibonacci levels at 75.16, before returning to rise again.
Bitcoin – 1H Timeframe
The digital currency, Bitcoin, rose after rebounding from the support of 29395, to reach the level of 30176 USD, with the continuation of the selling pressures, amid the decline in the digital currency capital.
Technically, the rise of Bitcoin stopped at the 100-hour moving average amid declining bullish momentum. We expect prices to decline again and test yesterday’s support at 29395, and if broken, the decline will continue towards 28470 USD.
EUR/USD – 1 Hour Timeframe
Supported by the rise of the US dollar for a correction, the (EUR/USD) pair retreated after the weak consolidation move, to touch the support levels around $1.12029, which is the minimum horizontal movement prevailing over it.
Technically, we expect further decline on the pair during today’s trading, especially in case it breaks the support levels around 1.1202, and targets the next support levels around 1.11300.
GBP/USD – 1 H Timeframe
The British pound fell against the dollar after the consumer price index data from the United Kingdom, by 7.9%, to trade the pair now around $1.2940 levels.
Technically, the pair is trading below the 200-hour moving average, after it succeeded in breaching the 38% Fibonacci retracement area, to reach 1.2931. We expect the decline to continue towards 1.2840, provided it continues below the $1.2970 resistance.
GBP/JPY – 4 Hours Timeframe
The ( GBP/ JPY ) pair continued to move below the 20- and 50-day moving averages, trading around the resistance level 181.55, awaiting British inflation data during the day.
Technically, the negative outlook remains valid for the pair, and it is likely to continue its decline during today’s trading, targeting the support levels around 178.00 yen.
