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:
– At exactly six in the morning, the German factory orders on a monthly basis for the month of July.
– At 8:30, the British PMI for the construction sector for August.
– At 12:30 p.m., the US trade balance for July.
– At a quarter to two, the purchasing managers’ index for the services sector for August.
– At two in the afternoon:
The Institute for Supply Management’s Non-Manufacturing Purchasing Managers’ Index for August.
Interest rate decision issued by the Central Bank of Canada.
Top News in Global Markets:
The following were the most important events from yesterday:
– According to Standard & Poor’s Global August:
-The PMI for China’s services was lower than expected.
-The reading of the same index in Germany was close to expectations.
-In the eurozone, the reading was lower than expected.
-The reading in the United Kingdom was higher than expected.
-The Reserve Bank of Australia maintained the interest rate at 4.10%.
– According to the European Statistical Center Eurostat, the Producer Price Index for July came in line with expectations on a monthly basis.
– New York session indices declined, as the Dow Jones Industrial Index fell by 195 points, and the Standard & Poor’s 500 Index also fell by 18 points.
And this morning:
– Australian GDP for the second quarter of the year was similar to expectations.
– Asian session indicators varied, as the Japanese Nikkei index exceeded 207 points, and the Australian ASX 200 index declined 57 points.
– The dollar/yen pair exceeded the level of 147 yen.
The euro advanced against the dollar from its lowest level since June, with the pair recording a price of $1.073.
– Bitcoin records a price of 25779 against the US dollar.
The dollar index is still at the highest level since March, recording 104.66 against a basket of major currencies.
Oil prices are at their highest levels since November, as Brent oil exceeded $90 per barrel, while US crude reached $86.69.
We are waiting during today’s hours:
– Purchasing managers’ index for the construction sector in Britain for August.
– Retail sales in the euro area on a monthly basis for July.
– Canadian and US trade balance for July.
– Canadian interest rate decision.
– Purchasing managers index for the services sector from the Institute for Supply Management for August.
Technical Analysis
Dollar Index – 4 Hours frame
The US dollar index continued to rise, breaching the 104.30 levels, as we indicated yesterday, as Treasury bond yields continued to rise while the US economy remained resilient.
Technically, the index declined slightly to correct on medium time intervals, so the pair is likely to continue falling to retest the support levels around 104.30, then rise again to target 105.20 points.
Gold – 1 Hour Timeframe
The yellow metal-stabilized above the 1927 level after a series of declines that continued for three consecutive days after the dollar’s rise stopped and awaiting today’s data from the United States.
Technically, gold is trading above the 38% Fibonacci retracement area, but it is still below the $1930 resistance. We expect prices to continue falling if they return below $1927, and we target $1916 support.
US Dow Jones – 4 Hours Timeframe
Since yesterday, the Dow Jones Index has fallen by more than 100 points, under the pressure of rising crude oil prices and concerns about global economic growth, breaking the moving averages for a period of 20 and 50 days, as we indicated yesterday.
Technically, we expect a further decline in the index during today’s trading, targeting support levels around 34550, in the event of a break, we will target the next support levels around 34170 points.
US Crude Oil – 15 M Timeframe
Oil prices declined from their highest level during the year, where prices reached a price of 88.14 before falling to levels of 86.00 US dollars.
Technically, oil is trading below the 87.10 resistance and the 38% Fibonacci retracement area, but it is still holding above the $86.00 support. We expect prices to rise again to the levels of 88.00 and then 88.70 US dollars.
GBP/USD – 1 H Timeframe
The GBP/USD pair is consolidating near $1.2600 after rebounding from its lowest level since last June at $1.2527.
Technically, the pair is trading near the 100 and 200 hourly moving averages in an attempt to continue the upward trend. We expect the correction to continue towards the 1.2620 level and then 1.26450 US dollars.
AUD/USD – 1 Hour Timeframe
The pair (AUD/USD) rose around the 0.6400 level after the GDP data in Australia this morning and the weakness of the US dollar.
Technically, the pair is trading around the 0.6400 level after rebounding from the low of 0.6350, and we expect the upward trend to continue towards the 100-hour moving average at a price of $0.6440.
USD/JPY– 4 Hours Timeframe
The resistance levels around 147.50 yen succeeded in halting the advance of the pair (USD/JPY), as we mentioned yesterday, coinciding with the dollar’s corrective decline today.
Technically, the pair is still trading above the moving averages for a period of 20 and 50 days, so the pair is likely to target the support levels around 146.50 yen, then rise again to target the resistance levels around 147.50, and 148.50 yen.
