Today’s Economic Calendar
We follow today in GMT:
– At 6:00 a.m., the Swiss unemployment rate for July is only a quarter away.
– At sixth German industrial production index on a monthly basis for June.
– At 8:30, the investor confidence index in the eurozone will be released from Sentix for financial behavior for the month of August.
Top News in Global Markets:
Highlights of the weekend:
– From Standard & Poor’s Global, the UK Construction Purchasing Managers’ Index for July was released, and the result was higher than expected.
– From the European statistical center Eurostat, retail sales in the eurozone were released, and the result was negative on a monthly basis for the month of June. In Canada, the employment change was very disappointing, while the unemployment rate was similar to expectations for July.
– In the United States, the US jobs report for July was released, as the average hourly earnings were higher than expected on a monthly basis, while the change in non-farm payrolls fell less than expected, and the unemployment rate also fell less than expected.
– New York’s major indices fell, and the Dow Jones Industrial Average fell by 150 points.
Technical Analysis
Dollar Index – 4 Hours Timeframe
The US dollar index rose in the first hours of trading today, after rebounding from the support levels around 101.50 points, which corresponds to the 50-day moving average.
Technically, the index is likely to rise during today’s trading, targeting the resistance levels around 102.15, around which the index is likely to bounce down again, targeting the support levels 101.50 again.
Gold – 4 Hours Timeframe
The price of the yellow metal fell today, Monday, to below 1941 dollars, after achieving a high last Friday at 1946.91, with the return of demand for the US dollar.
Technically, gold is trading below the moving average 200 with the formation of a selling cloud for the Ichimoku indicator. The price is now heading to test the Tenkan Sen reversal line at 1936.12, and if it is broken, we expect the decline to continue towards 1924 USD.
US Dow Jones – 4 Hours Timeframe
The Dow Jones Industrial index rose slightly with the start of the week’s trading, but it is still stable below the 20- and 50-day moving averages.
Technically, the negative outlook still dominates the index, so it is likely that the index will continue to decline during today’s trading, targeting the support levels around 34,855 points.
US Crude Oil – 1 H Timeframe
Oil continued to rise for the third day in a row, before returning to fall this morning below $83.00 per barrel.
Technically, oil is trading below the Tenkan Sen reversal line, with the price continuing above the bullish cloud of Ichimoku indicator, which indicates the continuation of the bullish momentum. We expect the correction to continue down to 81.40 before returning to the upside.
Bitcoin – 1Hour Timeframe
The price of the digital currency, Bitcoin, fell to the $29,000 level this morning, before bouncing up at 29215, to continue moving in the sideways direction.
Technically, oil is trading between the 100 and 200 hourly moving averages, and we expect the digital currency to slowly move upwards towards 29412, before bouncing back down towards 28,900 USD.
EUR/USD – 4 Hours Timeframe
The (Euro / Dollar) pair returned to decline with the opening of the week’s trading today, as the resistance levels around 1.10325 succeeded in stopping the price’s upward push for the third time in a row.
Technically, the pair is likely to continue to decline during today’s trading, targeting support levels around 1.0890.
GBP/USD – 1Hour Timeframe
The (GBP/ dollar) pair continues to fall for the second day in a row, near 1.2700, after the modest recovery of the US dollar and the increase in expectations of another rate hike at the next Federal Reserve meeting.
Technically, the pair is trading below the Tenkan Sen reversal line, after breaking the 38% Fibonacci retracement area, which indicates the continuation of the selling pressure for the pair, and we expect the decline to continue towards $1.2690 again.
GBP/JPY – 4Hours Timeframe
The (GBP / JPY ) pair continued its decline, completing the downward trend of last week, within the sideways movement prevailing over it, and settling in trading below the 20- and 50-day moving averages.
According to the technical outlook, we expect the pair to continue to decline during today’s trading, targeting support levels around 179.45, especially in case it breaks levels around 180.55 yen.
