Analysis of currency and stock markets 01.10.2019

Trading ideas for FACEBOOK Inc. (NASDAQ)

The support level of 176.56 held back sellers. The Awesome Oscillator indicator has formed a Bullish Divergence, while Stochastic Oscillator indicator signals oversoldness of the stock. Breakout the resistance level will result the formation of an upward 123 pattern.

Trading recommendations:

Buy above 178.75.

Stop Loss below the support level 176.56.

Target levels – 184.00; 191.34; 205.00.

GBPUSD Analysis

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

The support level of 1.2270, which is the level of 50% of the upward wave, holds back sellers. The MACD indicator has formed a Bullish divergence, where an intersection of the balance line of the indicator took place in the zone (B) – breaking the bearish line. Before buing, an upward wave structure and complete downward breakdown of the inclined channel are necessary.

Trading recommendations:

Buy on the formation of an ascending wave structure, where the wave (A) breaks through the inclined channel of the descending structure.

Stop Loss below the support level 1.2270.

Target levels –  1.2500; 1.2720.

AUDUSD Technical analysis

The pair reached the target of 0.6700 amid the RBA's decision not only to lower interest rates by 0.25%, and even hinting at possible rate cuts in the future in case of necessity.

The price is below the lower Bollinger band, below SMA 5 and SMA 14. RSI is in the oversold zone. Stoch are also there.

Trading recommendations:

The pair may correct up to 0.6720 due to local oversoldness. It should be sold from this level with the goals of 0.6700 and 0.6675.

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.

AUD Analysis 

The Australian dollar fell during the Asian session to witness the lowest since September 3, when it tested the lowest since March 18, 2009 against the US dollar following the developments and economic data that followed from the Australian economy and on the threshold of the decisions and directions of the Reserve Bank of Australia and the economic data expected today Tuesday by the US economy the largest economy in the world which includes the speech of members of the Federal Committee.

At 03:01 AM GMT, the AUDUSD fell 0.21% to 0.6736 levels, compared to opening levels at 0.6750, after hitting a one-month low of 0.6733, while hitting a session high of 0.6760.

The Australian Manufacturing Index was released by the Australian Industrial Group (AIG) which expanded to 54.7 vs. 53.1 in August, before the housing market data was released with the release of Building Permits. That showed the decline narrowed to 1.1% from 9.7% in July, worse than expectations for a 2.1% rise.

In the same context, we followed the release of the annual building permits index which showed a decline to 21.5% versus 28.2% in the previous year before July, contrary to expectations for a decline to 20.0%. Otherwise, markets are looking ahead to RBA policy makers' decisions and the RBA rate statement.

This comes before we see RBA Governor Philip Lowe making brief remarks at the Federal Reserve dinner in Melbourne, and we would like to note that expectations are for the RBA to resume its 25bp rate cut at an all-time low of 0.75% from 1.00 % After confirmation at the previous meeting and following a 25 basis point reduction in the two meetings preceding the previous meeting.

On the other hand, investors are now awaiting the speech of Chicago Fed President Charles Evans at a monetary policy conference hosted by the Bundesbank in Frankfurt, before Fed Vice Governor Richard Clarda made brief remarks at a conference on unconventional data, machine learning and processing. Natural language in macroeconomics is hosted by the Federal Reserve in Washington.

This comes before we see St. Louis Fed President James Pollard giving his opening speech in the banking community at the 21st Century Research Conference hosted by St. Louis Federal Reserve, to another FOMC member and another Fed Governor Michelle Bowman. At the very conference in St. Louis.

Otherwise, markets are looking to reveal the final reading of the US Manufacturing PMI by Markit, which may reflect the stability of the expansion at 51.0, little changed from the initial reading of last month and against 50.3 last August, and that comes before we see a reading Construction spending index reflecting accelerated growth to 0.5% vs. 0.1% in July.

Investors from the US, the world's largest industrial nation, are also awaiting the release of the ISM manufacturing index, which may show a widening of 50.4 versus a contraction of 49.1 in August. Worth 50.5 versus a contraction of 46.0 in August.

Markets are also looking ahead by the world's largest economy by tomorrow to release preliminary labor market data ahead of the US labor market data by the end of the week, leading to Federal Reserve Governor Jerome Powell opening remarks at a Federal Reserve listening event. Washington on Friday, which will also talk many members of the Federal Committee.

Technical analysis:

AUDUSD continues to decline quietly, gradually approaching the 0.6700 barrier, to keep the downside scenario intact for the coming period, relying on moving inside the descending channel shown, waiting to visit 0.6670 mainly, while stability below 0.6830. An important condition for the continuation of the bearish trend.

Expected trading range for today is between 0.6690 support and 0.6780 resistance.

Expected trend for today: Bearish.

EUR Analysis

The single currency of the European Union fluctuated in a narrow range tilted to decline during the Asian session to see its stability near the lowest since May 2017 against the US dollar on the eve of developments and economic data expected on Tuesday by the economies of the euro zone and the US economy, the world's largest economy Which includes the FOMC speech.

At 05:12 am GMT, EUR / USD fell 0.06% to 1.0892 levels from the opening at 1.0899, after the pair reached a session low of 1.0886, while hitting a high of 1.0901.

Markets are now looking to reveal the industrial sector data from Spain, the fourth largest economy in the euro zone, with the release of the manufacturing PMI which may reflect a widening contraction to 48.2 vs. 48.8 in August, before we see the release of the same indicator for Italy. The region's third-largest economy may also reflect a widening deflation to 48.2 vs. 48.7 in August.

This comes before we see the final reading of the manufacturing PMI for France, the second largest economy in the euro zone and Germany, the largest economies in the region as well as the economies of the euro area as a whole, which may reflect the stability of the expansion at 50.3 in France compared to 51.1 in August, and the stability of deflation at 41.4 in Germany versus 43.5 in August, and the contraction stabilized at 45.6 in the region as a whole versus 47.0.

Investors are also awaiting the outcome of Chicago Fed President Charles Evans' speech at a monetary policy conference hosted by the Bundesbank in Frankfurt, before Fed Vice Governor Richard Clarda makes brief remarks at a conference on unconventional data. Machine learning and natural language processing in macroeconomics are hosted by the Federal Reserve in Washington.

This comes before we see St. Louis Fed President James Pollard giving his opening speech in the banking community at the 21st Century Research Conference hosted by St. Louis Federal Reserve, to another FOMC member and another Fed Governor Michelle Bowman. At the very conference in St. Louis.

Otherwise, markets are looking to reveal the final reading of the US Manufacturing PMI by Markit, which may reflect the stability of the expansion at 51.0, little changed from the initial reading of last month and against 50.3 last August, and that comes before we see a reading Construction spending index reflecting accelerated growth to 0.5% vs. 0.1% in July.

Investors from the US, the world's largest industrial nation, are also awaiting the release of the ISM manufacturing index, which may show a widening of 50.4 versus a contraction of 49.1 in August. Worth 50.5 versus a contraction of 46.0 in August.

Markets are also looking ahead by the world's largest economy by tomorrow to release preliminary labor market data ahead of the US labor market data by the end of the week, leading to Federal Reserve Governor Jerome Powell opening remarks at a Federal Reserve listening event. Washington on Friday, which will also talk many members of the Federal Committee.

Technical analysis:

EURUSD is showing more bearish bias to gradually approach our main awaited target at 1.0857, and is under constant negative pressure from SMA 50, which supports the chances of a continuation of the decline inside the descending channel shown, and the opportunities are available to overcome the mentioned level and extend the descending wave to reach To 1.0770 as the next main station.

Therefore, the bearish trend will remain intact and likely over the coming sessions unless the price pushes to breach the 1.1020 level and hold above it.

Expected trading range for today is between 1.0770 support and 1.0965 resistance.

Expected trend for today: Bearish.

Gold Analysis

Gold futures fell during the Asian session to witness the lowest since August 6 last amid the rise of the US dollar index to its highest since May 12 of 2017 in accordance with the inverse relationship between them on the eve of the decisions of the Reserve Bank of Australia and the direction of economic data on Tuesday by the US economy the largest economy in the world which includes the speech of members of the Federal Open Market Committee.

Gold futures for December delivery fell 0.90% to trade at $ 1462.91 an ounce compared with the opening at $ 1472.99 an ounce, with the US dollar index up 0.09% to 99.49 compared to the opening at 99.40.

Markets are looking ahead to RBA policy makers' decisions and the RBA rate statement on expectations of a 25bp rate cut this year to an all-time low of 0.75% from 1.00%. We are seeing RBA Governor Philip Lowe make brief remarks at the Fed dinner in Melbourne.

Investors are also awaiting the outcome of Chicago Fed President Charles Evans' speech at a monetary policy conference hosted by the Bundesbank in Frankfurt, before Fed Vice Governor Richard Clarda makes brief remarks at a data conference. Traditional machine learning and natural language processing in macroeconomics are hosted by the Federal Reserve in Washington.

This comes before we also see St. Louis Fed President James Pollard giving his opening speech in the banking community at the 21st Century Research Conference, hosted by St. Louis Federal Reserve, to another FOMC member and another deputy governor of the Federal Reserve, Michelle. Bowman at the same conference in St. Louis.

Otherwise, markets are looking to reveal the final reading of the US Manufacturing PMI by Markit which may reflect the stability of the expansion at 51.0, little changed from the initial reading of last month versus 50.3 in August, and that comes before we see the reading of the index Construction spending reflecting accelerated growth to 0.5% versus 0.1% last July.

Investors are also awaiting the US, the world's largest industrialized country, to reveal the ISM manufacturing index, which may show a widening of 50.4 vs. a contraction of 49.1 in August. Valued at 50.5 versus a contraction of 46.0 in August.

Technical analysis:

Gold confirmed the breach of 1485.00 and completed the formation of the head and shoulders pattern mentioned in our recent reports, where the price is under negative pressure targeting 1447.00 levels and then 1413.00 as the next major stops, waiting for further decline today.

SMA 50 supports the continuation of the bearish wave, taking into consideration that its continuation requires stability below 1485.00 and 1488.90 levels.

Expected trading range for today is between 1450.00 support and 1475.00 resistance.

Expected trend for today: Bearish.

Gooogle Stock Analysis

Google's stock came out of the bumper channel in which it was moving, breaking the minimum channel. However, it faces resistance as a moving average 20 with 23.6% Fibonacci retracement.

SMA 50 is still a support level while SMA 7 is moving above the price and forming resistance.

Stochastic is in a bearish move after moving sideways near overbought area, thus increasing pressure on the price to try to break the support level.

The general direction of movement is: Bullish.

JPY Analysis

The US dollar fluctuated in a narrow uptrend range during the Asian session to see the 16th session rebound from its lowest level since November 9, 2016 against the Japanese Yen following the developments and economic data that followed from the Japanese economy and on the eve of developments and data. The US economy, the largest in the world, is scheduled to be released on Tuesday.

At 06:13 am GMT, the USDJPY rose 0.14% to 108.23 levels from the opening levels of 108.08, after the pair reached a session high of 108.30 and a low of 108.05.

The Japanese economy followed the release of the labor market data with the release of the unemployment rate which showed stability at 2.2%, little changed from the previous reading last July, contrary to expectations for a rise to 2.3%, and in the same Context, the employment-to-applicant ratio showed a stable at 1.59, little changed from the previous reading, in line with expectations.

This came before we witnessed by the third largest economy in the world revealed the reading of the Industrial and Service Index which showed that the industrial sector shrank to 5 vs. 7 in the second quarter, surpassing the expectations that the shrinkage to 1, as the sector shrank. Services to 21 to 23 in the second quarter, contrary to expectations that the expansion to shrink to 20.

The final reading of the Nikkei Manufacturing Purchasing Managers' Index (PMI) showed that the contraction stabilized at 48.9, little changed from the preliminary reading for September, contrary to expectations for a contraction to 49.3. This is the same as the previous reading for August.

Investors are also awaiting the outcome of Chicago Fed President Charles Evans' speech at a monetary policy conference hosted by the Bundesbank in Frankfurt, before Fed Vice Governor Richard Clarda makes brief remarks at a data conference. Traditional machine learning and natural language processing in macroeconomics are hosted by the Federal Reserve in Washington.

This comes before we also see St. Louis Fed President James Pollard giving his opening speech in the banking community at the 21st Century Research Conference, hosted by St. Louis Federal Reserve, to another FOMC member and another deputy governor of the Federal Reserve, Michelle. Bowman at the same conference in St. Louis.

Otherwise, markets are looking to reveal the final reading of the US Manufacturing PMI by Markit which may reflect the stability of the expansion at 51.0, little changed from the initial reading of last month versus 50.3 in August, and that comes before we see the reading of the index Construction spending reflected accelerating growth to 0.5% versus 0.1% in July.

Investors from the US, the world's largest industrial nation, are also awaiting the release of the ISM manufacturing index, which may show a widening of 50.4 versus a contraction of 49.1 in August. Worth 50.5 versus a contraction of 46.0 in August.

Markets are also looking ahead by the world's largest economy by tomorrow to release preliminary labor market data ahead of the US labor market data by the end of the week, leading to Federal Reserve Governor Jerome Powell opening remarks at a Federal Reserve listening event. Washington on Friday, which will also talk many members of the Federal Committee.

Technical analysis:

USDJPY is showing a bullish inclination to reach 108.30 now, and continues to move inside the ascending channel shown, waiting to push the price to breach the mentioned level and open the way for the extension of the bullish wave over the intraday and short term, where our next target is located at 109.30.

In general, we hold onto our bullish outlook for today unless it breaks the 107.70 level and remains intact with a daily closing below it.

Expected trading range for today is between 107.70 support and 109.30 resistance.

Expected trend for today: Bullish.