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
At exactly 6:00 am GMT, the UK consumer price index on an annual basis for the month of April.
-German Business Climate for May. Ifo – at eight indices
– At 9:30 am, Bank of England Governor Andrew Bailey’s speech.
– At 2:30 pm, the US Crude Oil Inventories report.
– At a quarter to six in the evening, Christine Lagarde, President of the European Central Bank, will speak.
– And at six o’clock the minutes of the meeting of the Federal Open Market Committee in the United States.
Top News in Global Markets:
Yesterday:
Standard & Poor’s Global released a set of indices for a number of countries in May, which are:
– The manufacturing PMI in Germany was lower than expected and the previous reading, while the services PMI was higher than expected and the previous reading.
In the Eurozone, the Manufacturing PMI was lower than expected, while the Services PMI was higher than expected, but still lower than previously.
In England, the Manufacturing PMI came in lower than expected, and the Services PMI also came in lower than expected.
– In the US, the Manufacturing PMI was lower than expected, while in the services sector, the result was higher than expected and the previous reading.
– According to the Federal Reserve Bank of Richmond, the Richmond Manufacturing Index fell less than expected for the month of May.
– New York session indicators declined.
And in the morning:
– To the Statistical Center of New Zealand, the retail sales index was lower than expected for the first quarter of the year.
The Reserve Bank of New Zealand raised interest rates by 25 basis points, bringing the interest rate to 5.50%.
Most of the indices of the Asian trading session declined.
– Bitcoin retreats again to the level of 26825 against the US dollar.
– The rise in oil prices, as US crude records a price of $73.83 per barrel, while Brent crude records a price of $77.70.
Markets are waiting for today:
– UK consumer price index on an annual basis for the month of April.
Speech by Andrew Bailey, Governor of the Bank of England.
– Crude oil inventories report in the United States.
– Minutes of the Federal Open Market Committee meeting.
Technical Analysis
Dollar Index – 1 Hour Timeframe
The resistance levels around 103.60 points succeeded in stopping the US dollar index’s upward push, bouncing down from it at the end of yesterday’s trading sessions, trading Now near the support levels around 103.30.
Technically, we are waiting for the price to remain above the support levels around 103.30 points, for the index to return to rise during today’s trading around the resistance levels 103.60 again, while in case of a break, we target the next support levels around 102.98.
Gold – 1Hour Timeframe
The price of the yellow metal rose yesterday, after rebounding from the $1954 support level, amid continuing fears of a US debt default.
Technically, gold is trading above the 100-hour moving average, after buyers succeeded in breaching $1974.25 levels. We expect the bullish trend to continue until $1988 near the 200-hour moving average, provided it continues above the current support at $1974 and $1970.
US Dow Jones – 1 Hour Timeframe
The Dow Jones industrial index declined during yesterday’s trading, as we mentioned, to stop this decline around the support level 33050 points, which represents the third test for these levels, which are the strongest levels in stopping the price’s bullishness in the medium term.
Technically, we expect the index to rebound upwards during today’s trading for correction, and target the resistance levels around 33270 again, especially in the case of closing above the support levels 33050, while in the event of a break and close below those levels, we target the support levels around 32805.
US Crude Oil – 1 Hour Timeframe
Oil rebounded from the support that we mentioned yesterday around 72.00 and 71.80 USD, to turn prices to the upside near 74.00 USD.
Technically, oil is trading above the 100-hour moving average in an uptrend, after the sellers failed to stay below $72.00. We expect the bullish trend to continue towards 75.96, in case the oil continues above the current support and does not return below the moving averages.
Bitcoin – 1 Hour Timeframe
The price of the digital currency, Bitcoin, declined as expectations increased for a solution to the US debt and progress in negotiations.
Technically, the digital currency prices turned bearish, after breaking the 38% Fibonacci area and the 100 and 200 hourly moving averages, to reach the $26,646 support area. We expect that if the current support is broken, the decline will continue toward $26,470 levels.
EUR/USD – 1 Hour Timeframe
The EUR/USD pair continued to decline, targeting support levels around 1.0770, as we mentioned yesterday, supported by the dollar’s further bullish during yesterday’s American session.
Technically, the pair is now trading at the highest levels of strong support, around which the pair may turn from slipping to the upside and completing the direction of the larger time intervals, and accordingly, we target the resistance levels around 1.0850 again, during today’s trading.
GBP/USD – 1 Hours Timeframe
The (GBP/USD) pair rose to 1.2464 after inflation data showed an increase in the United Kingdom this morning.
Technically, the pair is trading between the 100 and 200 hourly moving averages, we notice on the chart that the pound sterling is still under selling pressure and is facing resistance areas that are losing its purchasing power, so we expect the pair to return to the downside trend and target 1.2372 support again.
GBP/JPY – 1 Hour Timeframe
The (GBP / jpy) pair moves sideways over the short intervals between the levels of 172.50 and 171.25 yen, to rebound with the first hours of today’s trading around the upper limit of that sideways movement.
Technically, we expect a further decline on the pair during today’s trading, targeting the support levels around 171.25, in case the support levels broken around 172 yen and close below 172.50 levels, and forming a negative price Action.
USDCHF- 1 Hour TimeFrame
The dollar pair rose against the Swiss franc, reaching the resistance levels around 0.9025 that we mentioned yesterday. These levels succeeded in stopping the price’s upward push, to trade below it at the end of yesterday’s trading sessions.
Technically, the pair is likely to decline during today’s trading, targeting support levels around 0.8993 on the short-term intervals, and if the pair breaks these levels and close below them, we will target the next support levels around 0.8945
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