July 18th 2019 13th February-2020

TIME CURRENCY EVENT EXPECTED PREVIOUS CONSENSUS IMPACT

12:30 PM EUR German CPI

(MoM) (Jan) -0.6% -0.6% -

NEGATIVE

FOR EUR

07:00 PM USD Core CPI (MoM)

(Jan) 0.2% 0.1% -

POSITIVE

FOR USD

07:00 PM USD Initial Jobless

Claims 210K 202K -

NEGATIVE

FOR USD

- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -

TOP ECONOMIC EVENTS OF THE DAY

SNAPSHOT

SCRIP PRICE % CHANGE TREND

AUDUSD 0.6729 -0.08 STRONG

NZDUSD 0.6453 -0.13 STRONG

EURUSD 1.0873 0.02 WEAK

GBPUSD 1.2957 0.03 STRONG

USDJPY 109.97 -0.09 NEUTRAL

USDCAD 1.3246 -0.05 WEAK

USDCHF 0.9782 -0.02 STRONG

DXY 98.99 -0.06 STRONG

GOLD 1,568.96 0.21 NEUTRAL

SILVER 17.58 0.37 STRONG

CRUDEOIL 51.42 -0.05 STRONG

MARKET BYTES: • ASIAN EQUITY MARKET CLOSED HIGHER Asian benchmark indices closed in green on Wednesday as the country reported improving on coronavirus outbreak, with the number of new cases declining. At close, the South Korea's KOSPI finished 15 points or 0.7% higher at 2,238 and the Nikkei 225 index in Japan gained 175 points or 0.7% to close at 23,861. The Shanghai Composite in China added 25 points or 0.9% to 2927 and in Hong Kong the Hang Seng index gained 240 points or 0.9% to 27,824. • JAPANESE ECONOMIC DATA: PRODUCER PRICES BETTER THAN

EXPECTED According to bank of Japan, Producer prices in Japan climbed 1.7% in January 2020, up from a 0.9% climb in the previous month and compared to market expectations of a 1.5% increase led by a 9.2% jump in oil & coal prices, well above a 1.2% climb in the previous month.

ASIAN ECONOMY UPDATE

MSCI

OUR VIEW MSCI has formed a ‘Spinning Top’ candle stick pattern on daily scale that signals for indecisiveness in the sentiments of market participants. RSI is closed at 73.49 levels showing no signs of divergence and overbought. Stochastic oscillator is continued with bullish crossover.

AUDUSD TREND: STRONG

TECHNICAL OUTLOOK:

AUD/USD has been bounced back after sensing support from lower portion of ‘Rising Channel’ on hourly scale that signals for a consolidated move with a positive bias. The 100-hours Exponential Moving Average will continue to act as a major support for the counter.

INDICATORS 30 MIN 1 HOUR 4 HOUR DAILY

RSI BUY BUY SELL BUY

STOCHASTIC NEUTRAL BUY SELL BUY

BOLLINGER BAND NEUTRAL NEUTRAL SELL BUY

10 SMA SELL SELL NEUTRAL BUY

MA CROSSOVER(20,50) BUY BUY NEUTRAL BUY

SENTIMETER BUY NEUTRAL BUY BUY

FUNDAMENTAL ASPECT:

AUDUSD AUD/USD pair is extending gains after Beijing reported the lowest number of new coronavirus cases since January. Later the day, the RBA’s Lowe’s public appearance, Aussie Consumer Inflation Expectations for February, expected 4.3% versus 4.7% prior, will be the key to watch.

STRATEGY

ACTION ENTRY TARGET 1 TARGET 2 STOP LOSS

BUY 0.6736 0.6760 0.6782 0.6715

SCRIP SUPPORT 1 SUPPORT 2 RESISTANCE 1 RESISTANCE 2

AUDUSD 0.6703 0.6681 0.6798 0.6814

0.

NZDUSD TREND: STRONG

TECHNICAL OUTLOOK: NZD/USD has witnessed a stalwart rally earlier so a mean reversion to 100-hours Exponential Moving Average was expected by market participants. RSI is trading at 48.12 levels but expected to expand after breaching 60 levels.

INDICATORS 30 MIN 1 HOUR 4 HOUR DAILY

RSI BUY BUY NEUTRAL BUY

STOCHASTIC BUY SELL NEUTRAL BUY

BOLLINGER BAND BUY BUY NEUTRAL BUY

10 SMA NEUTRAL SELL SELL BUY

MA CROSSOVER(20,50) BUY NEUTRAL NEUTRAL BUY

SENTIMETER BUY NEUTRAL NEUTRAL BUY

FUNDAMENTAL ASPECT : NZDUSD NZD/USD pair was trading higher on Wednesday after the Reserve Bank of New Zealand announced that it will holding interest rates unchanged and policymakers also presented an upbeat assessment of the economy, which fueled market sentiments.

STARTEGY

ACTION ENTRY TARGET 1 TARGET 2 STOP LOSS

BUY 0.6463 0.6490 0.6513 0.6440

SCRIP SUPPORT 1 SUPPORT 2 RESISTANCE 1 RESISTANCE 2

NZDUSD 0.6423 0.6401 0.6498 0.6519

EUROPEAN ECONOMY UPDATE

MARKET BYTES:

• EUROPEAN EQUITY MARKET CLOSED IN POSITIVE TERRITORY European equities market ended in positive territory on Wednesday amid easing concerns about the coronavirus outbreak after Beijing said the number of new confirmed cases dropped to the lowest level since January 30th . At close, the DAX 30 rallied 0.9% to finish at a fresh record of 13,750, the FTSE 100 gained 35 points or 0.5%; the CAC 40 advanced 50 points or 0.8%; the IBEX added 58 points or 0.6%; and the FTSE MIB rose 172 points or 0.7%. • BREXIT: UK CHANCELLOR JAVID SAID FRICTIONLESS TRADE WITH THE EU WOULD BE "OVER" UK’s Finance Minister Sajid Javid recently crossed wires on UK border customs checks after the Brexit transition period said "Of course, we are not going to have completely frictionless trade because we have left the [EU] customs union and single market”. He further added, “ we are an independent sovereign nation trading with European friends, but also trading more so with the rest of the world.”

EURUSD TREND: WEAK

TECHNICAL OUTLOOK: EUR/USD is trading in a ‘Falling Channel’ on hourly scale that signals for a consolidated move with a negative bias. RSI is trading at 30.34 levels showing no signs of divergence and oversold. Stochastic oscillator is continued with bearish crossover.

INDICATORS 30 MIN 1 HOUR 4 HOUR DAILY

RSI NEUTRAL BUY NEUTRAL SELL

STOCHASTIC SELL NEUTRAL SELL SELL

BOLLINGER BAND SELL SELL SELL SELL

10 SMA NEUTRAL NEUTRAL NEUTRAL SELL

MA CROSSOVER(20,50) SELL BUY NEUTRAL SELL

SENTIMETER SELL NEUTRAL NEUTRAL SELL

FUNDAMENTAL ASPECT :

EURUSD EUR/USD pair is in bearish territory as the US dollar is strong across the board after the US Federal Reserve Chair Powell reiterated his cautiously optimistic testimony. On the other hand, he said about the coronavirus that the impact of the virus on the US economy will be seen very soon.

STRATEGY

ACTION ENTRY TARGET 1 TARGET 2 STOP LOSS

SELL 1.0900 1.0876 1.0855 1.0915

SCRIP SUPPORT 1 SUPPORT 2 RESISTANCE 1 RESISTANCE 2

EURUSD 1.0863 1.0826 1.0928 1.0959

GBPUSD TREND: STRONG

TECHNICAL OUTLOOK : GBP/USD has formed a classic ‘Marubozu’ candle stick pattern that often signals continuation of downtrend. RSI is closed at 65.82 levels showing no signs of divergence and oversold situation. DMI’s have been converged for continuation of upside.

INDICATORS 30 MIN 1 HOUR 4 HOUR DAILY

RSI BUY BUY NEUTRAL BUY

STOCHASTIC BUY NEUTRAL BUY NEUTRAL

BOLLINGER BAND BUY BUY NEUTRAL BUY

10 SMA BUY NEUTRAL NEUTRAL SELL

MA CROSSOVER(20,50) BUY BUY NEUTRAL SELL

SENTIMETER BUY NEUTRAL NEUTRAL SELL

FUNDAMENTAL ASPECT: GBPUSD GBPUSD pair is in positive territory as Brexit hopes continue to underpin the demand for pound against the greenback. However, there is no economic event in both countries today.

STRATEGY

ACTION ENTRY TARGET 1 TARGET 2 STOP LOSS

BUY 1.2512 1.2545 1.2578 1.2486

SCRIP SUPPORT 1 SUPPORT 2 RESISTANCE 1 RESISTANCE 2

GBPUSD 1.2300 1.2270 1.2380 1.2400

GBPUSD TREND: STRONG

TECHNICAL OUTLOOK : GBP/USD is trading in a ‘Rising Channel’ on hourly scale that signals for a consolidated move with a positive bias. Potential resistance is placed at 1.3073 levels. The pair is holding its 100-hours Exponential Moving Average.

INDICATORS 30 MIN 1 HOUR 4 HOUR DAILY

RSI BUY SELL NEUTRAL BUY

STOCHASTIC NEUTRAL NEUTRAL BUY BUY

BOLLINGER BAND SELL BUY NEUTRAL BUY

10 SMA SELL NEUTRAL NEUTRAL BUY

MA CROSSOVER(20,50) BUY BUY NEUTRAL BUY

SENTIMETER BUY NEUTRAL NEUTRAL BUY

FUNDAMENTAL ASPECT: GBPUSD The British pound is extending gains after the United States recorded a budget deficit of USD 32.6 billion in January of 2020 from a budget surplus of USD 8.7 billion a year ago and above market forecasts of a USD 11.5 billion gap.

STRATEGY

ACTION ENTRY TARGET 1 TARGET 2 STOP LOSS

BUY 1.2990 1.3030 1.3081 1.2966

SCRIP SUPPORT 1 SUPPORT 2 RESISTANCE 1 RESISTANCE 2

GBPUSD 1.2920 1.2852 1.3097 1.3138

MARKET BYTES: • US EQUITY FINISHED MIXED ON FRIDAY U.S equity ended mixed on Friday with S&P 500 and Nasdaq closed marginally lower at 0.1% and 0.2% or 2 and 18 points respectively while Dow Jones was marginally higher at 0.1% or 37 points as US retail sales beat market expectations in August led by increase in consumption of auto sector and online shopping platform stimulate the economic growth.

• TRUMP URGE TO GM AS UAW (UNITED AUTO WORKERS) CALLS

FOR STRIKE SINCE 2007 On Sunday, President Trump said to avoid the strike around 48,000 workers, the UAW and General Motors to come together to negotiate and “make a deal”. The strike is to improve wages, reopen idled plants, add jobs at others and close or narrow the difference between pay rates for new hires and veteran workers of UAW while General Motors wants its employees to pay a standard remuneration of their health care expenses, and to increase productive work-force in their work place.

US ECONOMY UPDATE

MARKET BYTES:

• U.S EQUITY CLOSED WITH NEW HIGHS U.S equity market ended in green on Wednesday after the Fed Chair Powell said the impact of the coronavirus on the US economy will be seen very soon but Beijing reported the lowest number of new coronavirus cases since January. At close, the final numbers were: the Dow Jones added 275 points or 0.9% to 29,551, the S&P 500 climbed 22 points or 0.7% to 3,379 and the NASDAQ gained 87 points or 0.9% to 9,726.

• AMERICAN AIRLINES: IT WILL SUSPEND FLIGHTS TO CHINA UNTIL

APRIL American Airlines announced Tuesday that it will suspend its flights to China and Hong Kong until the end of April. Meanwhile, another city in China has been shut down- Zhangwan District in the city of Shiyan, Hubei province due to coronavirus lockdown.

DOLLAR INDEX

OUR VIEW: The DXY has formed a ‘Bullish Belt Hold’ candle stick pattern that signals the strength of buyers and continuation of bullish momentum cannot be ruled out. RSI is closed at 69.97 levels showing no signs of divergence and overbought.

OUTLOOK: STRONG

USDJPY TREND: NEUTRAL

TECHNICAL OUTLOOK: USD/JPY is continued to march towards its previous highs that is placed at 110.30 levels on hourly scale. RSI has been bounced back after sensing support from 40 levels. The pair is holding its 100-hours Exponential Moving Average.

INDICATORS 30 MIN 1 HOUR 4 HOUR DAILY

RSI NEUTRAL SELL BUY NEUTRAL

STOCHASTIC NEUTRAL BUY BUY NEUTRAL

BOLLINGER BAND BUY BUY NEUTRAL NEUTRAL

10 SMA BUY SELL NEUTRAL NEUTRAL

MA CROSSOVER(20,50) BUY NEUTRAL NEUTRAL NEUTRAL

SENTIMETER NEUTRAL NEUTRAL NEUTRAL NEUTRAL

FUNDAMENTAL ASPECT: USDJPY USD/JPY pair is continued to remain in consolidation phase after Japanese Producer prices climbed 1.7% in January 2020, up from a 0.9 percent climb in the previous month and compared to market expectations of a 1.5% gains. Moreover, China's National Health Commission (NHC) announced that the recovery rate from infections rose to 10.6% from 1.3% on January 27th. STRATEGY

ACTION ENTRY TARGET 1 TARGET 2 STOP LOSS

BUY 110.00 110.22 110.48 109.80

SCRIP SUPPORT 1 SUPPORT 2 RESISTANCE 1 RESISTANCE 2

USDJPY 109.92 109.65 110.31 110.63

USDCAD TREND: WEAK

TECHNICAL OUTLOOK: USD/CAD has witnessed a steep fall after slipping below 30 (4-hours) Exponential Moving Average. The primary trend line will continue to act as a major support for the counter. RSI is trading at 29.21 levels showing no signs of divergence and oversold.

INDICATORS 30 MIN 1 HOUR 4 HOUR DAILY

RSI BUY SELL BUY SELL

STOCHASTIC BUY NEUTRAL NEUTRAL SELL

BOLLINGER BAND NEUTRAL NEUTRAL BUY SELL

10 SMA BUY BUY NEUTRAL SELL

MA CROSSOVER(20,50) SELL BUY SELL SELL

SENTIMETER SELL NEUTRAL NEUTRAL SELL

FUNDAMENTAL OUTLOOK: USDCAD The loonie pair is in bearish territory after Powell added that the impact of the virus on the US economy will be seen very soon, which lifted the Canadian dollar against the greenback. Other than that, BOC's Poloz said the economy is in a good place, helped the CAD score gains.

STRATEGY

ACTION ENTRY TARGET 1 TARGET 2 STOP LOSS

SELL 1.3255 1.3230 1.3200 1.3276

SCRIP SUPPORT 1 SUPPORT 2 RESISTANCE 1 RESISTANCE 2

USDCAD 1.3246 1.3219 1.3328 1.3358

USDCHF TREND: STRONG

TECHNICAL OUTLOOK: USD/CHF has given a breakout of Inverted ‘Head and Shoulder’ pattern on 4-hour scale that signals for a bullish reversal and possesses high reliability. Stochastic oscillator is continued with bullish crossover.

INDICATORS 30 MIN 1 HOUR 4 HOUR DAILY

RSI SELL SELL SELL BUY

STOCHASTIC BUY BUY SELL BUY

BOLLINGER BAND SELL SELL NEUTRAL BUY

10 SMA NEUTRAL SELL SELL BUY

MA CROSSOVER(20,50) BUY BUY NEUTRAL BUY

SENTIMETER BUY BUY NEUTRAL BUY

FUNDAMENTAL OUTLOOK: USDCHF USD/CHF pair has been bounced back from previous trading session due to absence to Swiss economic activity that dented demand for safe-haven against the dollar. On the other hand, Beijing reported the lowest number of new coronavirus cases since January, that boosted market sentiments. STRATEGY

ACTION ENTRY TARGET 1 TARGET 2 STOP LOSS

BUY 0.9790 0.9815 0.9842 0.9774

SCRIP SUPPORT 1 SUPPORT 2 RESISTANCE 1 RESISTANCE 2

USDCHF 0.9768 0.9735 0.9829 0.9868

GOLD TREND: NEUTRAL

TECHNICAL VIEW: XAU/USD is trading in a ‘Symmetrical Triangle’ pattern that signals for indecisiveness in the sentiments of market participants. RSI is trading back and forth in a narrow range of 40-60 levels. Stochastic oscillator is hinting for a lackluster move.

STRATEGY

ACTION ENTRY TARGET 1 TARGET 2 STOP LOSS

BUY 1574.42 1581.51 1587.60 1569.00

SCRIP SUPPORT 1 SUPPORT 2 RESISTANCE1 RESISTANCE2

GOLD 1561.23 1558.02 1583.49 1589.71

GOLD

STRATEGY

SILVER TREND: STRONG

TECHNICAL VIEW: XAG/USD has been bounced back after tapping its potential ‘Demand’ zone that is placed in a narrow range of 17.451-17.497 levels on hourly scale. The pair is expected to extend its gains after breaching the 30-hours Exponential Moving Average.

STRATEGY

ACTION ENTRY TARGET 1 TARGET 2 STOP LOSS

BUY 17.555 17.690 17.786 17.464

SCRIP SUPPORT 1 SUPPORT2 RESISTANCE 1 RESISTANCE2

SILVER 17.320 17.201 17.719 17.875

CRUDEOIL TREND: STRONG

TECHNICAL VIEW: Crude Oil WTI futures is forming a ‘Rounded Bottom’ pattern on hourly scale that signals for continuation of bullish momentum and possesses high reliability. Potential resistance is placed at 53.37 levels. RSI is holding above 60 levels.

STRATEGY

ACTION ENTRY TARGET 1 TARGET 2 STOP LOSS

BUY 52.06 52.88 53.77 51.40

SCRIP SUPPORT1 SUPPORT 2 RESISTANCE1 RESISTANCE2

CRUDE OIL 51.53 50.34 53.58 55.06