Join us as we follow the market’s most significant events and provide technical analysis of the most important financial assets, so you are more aware of the factors driving daily price changes and economic data.
Today’s Economic Calendar
We follow today in GMT:
The Final German service PMI at 07:55 AM
– The final services PMI in the UK at 8:30 AM
– Producer price index in the euro area at 09:00 AM
– US factory orders on a monthly at 02:00 PM
Top News in Global Markets:
Yesterday’s most important events:
Swiss GDP showed stagnation in the second quarter, after growth of 0.9% in the first quarter.
– The German trade balance showed a surplus below expectations of 15.9 billion euros in July 2023.
– The Sentix economic index indicated that there will be further contraction in the global economy and a strengthening of the economy’s strength.
During her speech in London yesterday, Christine Lagarde avoided indicating whether the European Central Bank would raise or maintain interest rates next week.
And this morning:
The Australian dollar fell below $0.645, falling to its lowest level in a week after the Reserve Bank of Australia kept interest rates steady for the third month in a row at 4.1%.
– The New Zealand dollar fell 0.4 percent after falling the previous day against the backdrop of concerns about the economic slowdown in China, the main trading partner.
The Shanghai Composite Index fell by 0.5%, from its highest levels in one week, due to investors’ reaction to data indicating a slowdown in the growth of the services sector in China to the lowest level in eight months in 2019.
– The Nikkei 225 fell below 32,900 while the broader Topix index lost 0.1% on Tuesday, falling for the first time in seven sessions as investors turned cautious as they awaited new market signals.
We wait during the day:
The Final German service sector
– The final services sector data in the UK
– Producer price index in the euro area
– US factory orders on a monthly basis
Technical Analysis
Dollar Index – 4 Hours frame
The US dollar index continued to fluctuate around the support levels of 104.00 points, as selling pressures failed to break those levels. The index bounced upward in the early hours of today’s trading.
Technically, the moving averages have begun to show positive signs on the index, so the index is likely to continue rising during today’s trading, targeting resistance levels around 104.60 points.
Gold – 1 Hour Timeframe
The yellow metal fell below the $1940 level as US bond yields rose awaiting US data today.
Technically, gold is trading below the 100-hour moving average and near the 1934.70 support area, which we expect that if broken, the decline will continue towards the $1927 support at the 38% Fibonacci retracement area.
US Dow Jones – 4 Hours Timeframe
The Dow Jones Industrial index continued its decline, after the resistance levels around 35170 succeeded in stopping the price advance and completing the rise, closing the index below the 20-period moving average yesterday.
Technically, the index is trading below the resistance levels around 34806, so in the event of stability below those levels, we expect further decline in the index and target the support levels around 34550 points.
US Crude Oil – 1 D Timeframe
Oil prices rose to their highest level since the beginning of the year and are trading near the level of $86.00 per barrel.
Technically, oil has been moving sideways since yesterday after touching the 85.40 support and moving back up again trying to break the 85.20 resistance and remain above it. We expect more Bullishness towards 86.70$ if the 86.00 resistance is breached.
GBP/USD – 4 H Timeframe
GBP/USD is trading around the 1.2600 area ahead of UK PMI data
Technically, the pair is trading below the 200-hour moving average after rebounding from the 1.2640 resistance yesterday, continuing the downward trend, which we expect to continue to 1.2485 and then $1.2390.
USD/JPY– 4 Hours Timeframe
The pair (USD/JPY) has pushed upward since yesterday, regarding of the dollar’s recovery and stability above 104 levels, and investors also reacted to data that showed Japanese business activity expanding in August at the fastest pace in three months.
Technically, the pair is trading at the highest levels of support around 146.50 yen, after receiving purchasing momentum from the 20- and 50-day moving averages, so more Bullishness is expected during the day, targeting 147.50 points.
