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’s events in GMT:
At 6:30 a.m., the Swiss Consumer Price Index is released on a monthly basis for the month of May.
– At eighth is the PMI for the services sector in the eurozone for May.
– And at half past eight, the same indicator is issued for the United Kingdom.
At 9:00 am we follow the producer price index in the Eurozone on a monthly basis for the month of April.
– At quarter to two in the afternoon, the PMI for the services sector in the United States for the month of May will be released.
– In the second, the American Institute for Supply Management issues the Purchasing Managers’ Index for the non-manufacturing sectors for the month of May.
Top News in Global Markets:
Highlights of this past weekend:
– US employment data was released for the month of May, where the average hourly earnings were similar to expectations on a monthly basis, the change in non-agricultural employment came above expectations, while the unemployment rate was higher than expected, which is not good for the economy.
– The indices of the New York trading session rose, as the Dow Jones Industrial Average closed up by more than 700 points, and the Nasdaq closed up by 139 points, and the Standard & Poor’s Index reached its highest level since August 2022.
– OPEC members agreed to extend the oil production cut until the end of 2024, and the Kingdom of Saudi Arabia decided to make an additional cut in its oil production, starting in July, by an amount of one million barrels per day.
– US President Joe Biden signed a bill that disrupts the government debt ceiling and cuts spending to prevent the state from defaulting on its financial obligations, thus the law becomes enforceable.
And in the morning:
– From Standard & Poor’s Global, the services PMI was released for the month of May, and the reading was higher than expectations and the previous reading.
– The indices of the Asian trading session rose, and the Japanese Nikkei index rose by more than 585 points, and in Hong Kong the Hang Seng index rose by 67 points.
– Gold retreats to the level of 1960 dollars an ounce.
Among the most important events expected today:
German Trade Balance for the month of April.
Swiss consumer price index on a monthly basis for the month of May.
– European Investor Confidence Index for the month of June.
– The final reading of the PMI for the services sector in Britain for the month of May.
– Producer price index in the Eurozone on a monthly basis for the month of April.
– The final reading of the PMI for the services sector in the United States for the month of May.
– The same indicator is also issued, but from the American Institute for Supply Management.
Among the most important events of the week:
– The interest rate decision of the Reserve Bank of Australia tomorrow.
– On Wednesday, Australia’s first-quarter GDP, and the Bank of Canada’s interest rate decision.
On Friday, the Unemployment Rate and the Canadian Employment Change Index will be released..
Technical Analysis
Dollar Index – 1 Hour Timeframe
The markets closed at the end of last week’s trading, on the recovery of the US dollar
Strong US non-farm labor data, which showed that the US economy added 339 thousand jobs, came in hotter than market expectations.
Technically, we expect more Bullishness on the index during today’s trading, targeting the resistance levels around 104.35 points, around which we expect the index to decline again.
Gold – 1 Hours Timeframe
The yellow metal’s losses extended at the beginning of today’s trading, in continuation of the impact of last week’s US jobs data and the increase in expectations that the Federal Reserve will continue it’s tightening policy.
Technically, gold is trading near the 100-day moving average around the levels of 1940 and 1930.50 USD, we expect the decline to continue to test this support again.
US Dow Jones – 1 Hour Timeframe
After a violent rise on the Dow Jones industrial index from around support levels 32745, supported by the formation of the double bottoms pattern over the medium intervals, the purchasing power declined today on the index, trading around 3380 points.
Technically, we expect the index to decline during today’s trading, and target support levels around 33,600 again, and in the event of a break and stability below it, we will target 33,250 points.
US Crude Oil – 1 Hour Timeframe
Oil prices rose at the beginning of the week’s trading to their highest level since last May, after OPEC members announced to continue cutting as agreed upon in the previous meeting.
Technically, oil prices rose to $74.30, before falling again below 73.00. We expect the decline to continue in a corrective move towards the 200-hour moving average and the 38% Fibonacci area around $71.65 and $71.50, on the condition that it continues below the resistance of 73.00.
Bitcoin – 1 Hour Timeframe
The digital currency, Bitcoin, rose near $27,500 levels at the beginning of the week’s trading, before falling again in the early hours of this morning, to settle near the $26,700 support.
Technically, the digital currency rebounded from the 38% Fibonacci retracement area, losing about 70 points, and is now trading below the 100 and 200 hourly moving averages, so we see that if the current support 26,700 is breached, the Bearishness will continue towards 26,400 USD.
EUR/USD – 1 Hours Timeframe
The EUR/USD pair continued its decline, since the end of last week’s trading, to bounce down from the resistance levels around 1.07950, supported by the dollar’s recovery.
Technically, we expect further decline on the pair, targeting the support levels around 1.06750, then the next levels around 1.06350.
GBP/USD – 1 Hours Timeframe
The (GBP /USD) pair continues to decline at the beginning of the week’s trading, after rebounding from its highest levels in 3 weeks.
Technically, the pair is trading below the 100-hour moving average, for the pair to move between the 38 and 50% Fibonacci correction areas. We expect that if it closes below the current support of 1.2414, the decline will continue slowly towards 1.2400 and 1.2390, near the 200-hour moving average.
GBP/JPY – 1 Hour Timeframe
the (GBP/JPY) pair declined at the beginning of the week’s trading today, Monday, breaking the prevailing bullish trend on short-term intervals, and trading below the resistance levels around 174.15 yen.
Technically, we expect a further decline on the pair during today’s trading, targeting support levels around 173.80, then in the event of a break and close below it, we target 173.30 yen
