Analysis of currency and stock markets 24.09.2019

Important support and resistance levels

When buying an option against the trend, it is necessary to confirm other technical analysis tools – the presence of divergence, reversal candlestick patterns. Buy against the trend strictly on the retest level! Buying an option before publishing important economic news is considered risky.  The expiration time depends on the strength of the level and confirmation by additional tools of technical and fundamental analysis.

Trading ideas for FACEBOOK Inc. (NASDAQ)

The support level of 185.00 holds back sellers. The downward sloping channel level design M15 is breeched. A rising pattern is forming within the general uptrend. Stochastic Oscillator signals oversoldness.

Trading recommendations:

Buy above 187.60.

Stop Loss – 185.00.

Target levels – 191.34; 205.00.

CADJPY Analysis

Analysis based on round-number levels, price channels and modified Elliot Waves

Pin Bar has formed on D1 timeframe. The price is in the range of 5 and 22 moving averages.

Reversal pattern Head and Shoulders has formed on TF and H1.The pair is trading in the range of the important round level 81.00. A breakout of the secondary round level 81.20 will result in a formation of a level N1 rising wave and a breakout of the "neck line" of the Head and Shoulders. The pair is also trading in the range of 365 and 135 moving averages.

Trading recommendations:

Buy above 81.20

Stop loss under round secondary level 80.80

Target levels – 82.00 (a trap for pros – close½ and move to breakeven); 82.50.

GBPUSD Technical Analysis

The pair is consolidating below the level of 1.2445 under the influence of Brexit. The pair is more likely to continue falling than to grow.

The price is below the middle Bollinger band, above SMA 5, but below SMA 14. RSI moves horizontally below the level of 50%. Stoch are rising.

Trading recommendations:

If the pair doesn’t rise above the level of 1.2445, it should be sold with a target of 1.2280.

Gold Analysis

Gold futures fluctuated in a narrow range that tended to decline during the Asian session to witness the bounce for the second session from the highest since September 6 amid positive stability of the US dollar index, indicating that it bounced for the third consecutive session from the lowest since 16 of this month according to the inverse relationship TOKYO (Reuters) - The US economy, the world's largest, is on the eve of developments and economic data on Tuesday, as the Bank of Japan's Governor and Reserve Bank of Australia head looking ahead.

At 04:28 am GMT gold futures for December delivery fell 0.08% to trade at $ 1520.50 an ounce compared with the opening at 1522.86 an ounce, with the US dollar index rose 0.01% to 98.66 compared to the opening at 98.65.

Investors are currently awaiting the outcome of Bank of Japan Governor Haruhiko Kuroda's speech at a meeting of business leaders in Osaka. This comes before the Bank of Australia Governor Philip Lowe will deliver a speech entitled “Economic Modernization” at the dinner of the Armipal Chamber of Commerce in New South Wales. This is just hours before the Reserve Bank of New Zealand's monetary policy-makers' decisions tomorrow.

On the other hand, investors are awaiting the US economy to release housing market data with the release of the annual reading of the S&P House Price Index, which may show the acceleration of growth to 2.2% vs. 2.1% last June, coinciding with the release of the price index. Homes which may reflect accelerated growth to 0.3% vs. 0.2% in June.

This comes before we are witnessing by the largest industrial country in the world the disclosure of the industrial sector data with the release of the Richmond Manufacturing Index, which may show an expansion to the value of 2 to 1 last August, in conjunction with the release of consumer confidence index, which may show Breadth shrank to 134.1 from 135.1 in August

In view of the development of trade talks, we have recently followed the Chinese Ministry of Commerce expressed that the discussions on economic and trade conditions held last weekend in Washington between the world's two largest economic powers are "constructive" and good about the "detailed arrangements" for the upcoming trade talks in October. Next high-profile, and that both the United States and China agreed to stay in touch.

This came after the US Trade Representative's Office last Friday issued a brief statement describing the two-day talks with China as "fruitful" amid the assertion that the high-level trade meeting between the two parties will be held in Washington next month as planned. Last weekend, the United States also removed tariffs on more than 400 Chinese products in response to orders from US companies.

Otherwise, investors are awaiting caution on the eve of national holidays next week in China. Following the Chinese delegation's cancellation last week of a planned visit to US agricultural states, particularly Montana, which was priced in the markets that the recent trade negotiations were Fragile on the eve of the high-level talks between the parties expected by early October.

Technical analysis:

The bullish gold rally has stopped at our first target of 1524.00, showing some slight bearish bias affected by the negativity of the stochastic, while SMA 50 continues to support the price from below.

Therefore, we believe that chances are available for resuming the overall bullish trend over the coming sessions, whose next target is at 1555.00, taking into consideration that breaching 1505.00 then 1485.00 will stop the expected rally and press the price to start a bearish corrective wave.

Expected trading range for today is between 1505.00 support and 1540.00 resistance.

Expected trend for today: Bullish.

AUD Analysis

AUDUSD has been trading around 0.6775 since yesterday, and the price continues to move within the descending main channel shown in the picture, and is under constant negative pressure from SMA 50.

Thereby, our bearish outlook will remain valid for the coming period, targeting 0.6670 as the next stop, while it requires stability below 0.6860.

Expected trading range for today is between 0.6720 support and 0.6800 resistance.

Expected trend for today: Bearish.

JPY Analysis

The US dollar fluctuated in a narrow uptrend range during the Asian session to witness the resumption of the rebound from the lowest since November 9, 2016 to the 13th session in twenty-two sessions against the Japanese yen following the developments and economic data that followed from the Japanese economy, which included talk Bank of Japan Governor Haruhiko Kuroda in Osaka is on the cusp of economic developments and data expected Tuesday by the world's largest economy.

At 05:59 AM GMT the USDJPY rose 0.05% to 107.60 levels from 107.55 opening levels, after hitting a session high of 107.69 and a low of 107.48.

We followed the preliminary reading of the Markit manufacturing PMI by Japan, the world's third largest industrialized nation, which showed deflation widened to 48.9 from 49.3 in August, before the Bank of Japan Governor Kuroda's confirmation during the branch meeting The Bank of Japan will keep short and long-term interest rates at very low levels at least until the spring of 2020.

On the other hand, investors are awaiting the US economy to release housing market data with the release of the annual reading of the S&P House Price Index, which may show the acceleration of growth to 2.2% vs. 2.1% last June, coinciding with the release of the price index. Homes which may reflect accelerated growth to 0.3% vs. 0.2% in June.

This comes before we see the release of the industrial sector data by the largest industrial country in the world with the release of the Richmond Manufacturing Index, which may show an expansion to the value of 2 to 1 in August, in conjunction with the release of consumer confidence, which may show contraction Expansion to 134.1 vs. 135.1 in August.

Technical analysis:

USDJPY broke the 107.70 level and closed the daily candlestick below it, opening the way for a return to the bearish path again, especially as the SMA 50 meets the mentioned level to add more strength to the resistance formed there, in addition to the stochastic losing its momentum. Gradually positive.

Therefore, these factors encourage us to favor the bearishness over the coming sessions, with targets starting at 106.70 and extending to 106.50, noting that breaching 107.70 and consolidating above it will re-activate the bullish scenario, where the first target is located at 108.30.

Expected trading range for today is between 106.60 support and 108.30 resistance.

Expected trend for today: Bearish.

Google Stock Analysis

Google started the sideways movement within the bullish channel, where it is temporarily moving as it is based on the support level provided by the 23.6% Fibonacci retracement.

Moving averages 20-50 form support levels while SMA 7 is temporary resistance.

Stochastic is in a bearish move after exiting the overbought area thus increasing the pressure on the price to try to support it.

The general direction of movement is: Bullish

EUR Analysis

The single currency fluctuated in a narrow, bearish range during the Asian session against the US dollar on the eve of economic developments and data expected on Tuesday by Germany, the euro zone's largest economy and the world's largest economy.

At 04:56 AM GMT, the EURUSD rose 0.12% to 1.1021 compared to the opening at 1.1008, the pair's lowest level during the session, while the pair achieved its highest at 1.1025, knowing that the pair started this The week is on a bearish price gap after closing last week at 1.1017 levels.

The German economy is currently looking to reveal the IFO business climate reading which may reflect an expansion to 94.5 vs. 94.3 last August, and the same forecast for the index may show an expansion to 92.0 vs. 91.3 in August. The reading of the same index for current assessments may show that the breadth has shrunk to 97.0 from 97.3 last month.

On the other hand, investors are awaiting the US economy to release housing market data with the release of the annual reading of the S&P House Price Index, which may show the acceleration of growth to 2.2% vs. 2.1% last June, coinciding with the release of the price index. Homes which may reflect accelerated growth to 0.3% vs. 0.2% in June.

This comes before we see the release of the industrial sector data by the largest industrial country in the world with the release of the Richmond Manufacturing Index, which may show an expansion to the value of 2 to 1 in August, in conjunction with the release of consumer confidence, which may show contraction Expansion to 134.1 vs. 135.1 in August.

Technical analysis:

EUR / USD is fluctuating around the 1.1000 level and remains below it, and continues to move inside the descending channel shown, keeping the bearish scenario valid for the coming period, and the way is open for achieving our next target at 1.0857.

SMA 50 continues to support the suggested bearish wave, which requires stability below 1.1070, as a breach through this level will lead the price to test 1.1180 areas initially.

Expected trading range for today is between 1.0900 support and 1.1070 resistance.

Expected trend for today: Bearish.