Weekly Overview

US Dollar Index

After recording a bottom below the level of 107.670, which represents the first negative confirmation signal for the dollar index in more than a year, this index is close to erasing half of its gains for this year due to the Fed’s tendency to reduce the pace of interest rate hikes, and it is expected that it will suffice with raising interest by only 50 basis points in the next meeting. As a result of the noticeable decline in inflation data, where the consumer price index recorded 7.7%, the results of employment data were also released, and the strength of the labor market appeared, recording a positive reading, but the effect was temporary before the decline in this indicator continued.
Technically, the US dollar index approached an important support area located at 103.775 and 103.440 levels, where the price traded above it for seven months in a row, and this is the first time it approached it, breaching the 103.440 level and recording a bottom below it will give more decline for this indicator, but to maintain it we will have a correction bullish to bearish
The level of 105.225 represents the first opportunity for a decline for this indicator in the medium term, and in the event that the highest level of 105.575 is recorded, further rise will be the closest, and the level of 107.045 represents the second opportunity for a decline in the long term

Gold

With the decline of the US dollar and the news of reducing the pace of interest rate hikes in the United States, gold rose last week by 2.55%, penetrating the level of 1786.680 and recording a peak above, which supports the bullish trend.
Technically, in the medium term, the level of 1785.266 represents a buying opportunity for gold, on the condition of maintaining the level of 1778.558 and not recording a bottom below it.
In the long term, in the event that 1778.558 is breached and a bottom is recorded below, the possibility of a decline increases for gold, which represents a correction on the daily frame. The level of 1745.184 represents a second buying opportunity on gold, and the level of 1727.630 must be maintained and not record a bottom below on the daily frame

Crude Oil

The price of crude oil rose again after the OPEC + coalition approved yesterday to maintain the current production levels, that is, to reduce production by two million barrels for two days, and also the reduction of restrictions in China positively affected oil prices.
Technically, crude oil is still in a negative framework in the medium term, and the reason is that it did not record the highest level at 83.31 on the daily basis, which maintains the possibility of a decline, but on the four-hour chart, the trend is still bullish, and the price records higher peaks and lower peaks than one another, while breaching the level of 79.97 And recording a bottom below it on the four-hour chart, the target for crude oil will be at 79, and on the long term at 74.50

Euro against US Dollar

For the first time since June 30, that is, about seven months, the euro against the dollar breached the level of 1.04888 and established itself above, with recording a top on the daily frame above this level, which confirms the bullish trend of the euro pair against the US dollar.
On the medium term, the level of 1.04617 represents a buying opportunity, on the condition that no bottom is recorded in the four-hour chart below the level of 1.04281.
In the long run, in the event that the euro records a bottom below the level of 1.04281, which will push the price to decline to the level of 1.03004, which in turn also represents a better buying opportunity for this pair, on the condition of maintaining the level of 1.02225 and not recording a bottom below it on the daily frame, in order to maintain the positive scenario.
Note: For the first time since June 2021, the EUR/USD pair has breached the 200 simple moving average, which gives a very positive signal if this pair maintains it

Sterling Pound against US Dollar

In the footsteps of gold and the major currencies in general, the pound sterling rose against the US dollar as a result of the decline in the US dollar index. In the medium and long term, this pair is trading in a bullish direction and is now trading at a resistance area located at 1.23311 and 1.24097, which provides the possibility of a decline for this pair
Traders should monitor the level of 1.21335, which represents the first support line that must be preserved and not be breached to the downside, and the level of 1.19014, which represents the last support line for the bullish trend

US Dollar against Canadian Dollar

The US dollar against the Canadian dollar rebounded from the level of 1.32504, which failed to record a bottom below, and recorded a peak above the level of 1.35710, which represents the last high decline recorded by the market, which indicates a change in the trend from bearish to bullish. Failure to breach the level of 1.33170 maintains the positive scenario and the next target. It is located at the level of 1.36
Note: This pair awaits the interest rate decision issued by the Canadian Central Bank on Wednesday, December 7th, which is expected to raise interest rates by 25 basis points, so that the interest rate becomes 4%

US Dollar against Japanese Yen

This pair is trading in a general downward direction, recording lower bottoms than each other. If this pair rises, it will be a corrective rise and a new selling opportunity that is divided into two levels, the first level is at 138.967 and the second level is at 140.412, and the next target for this pair is at 132 and 131. .566

Australian dollar vs US dollar

The Australian dollar pair against the US dollar is trading in a general downward direction, touching the resistance area located at the levels of 0.68286 and 0.69161, which raises the possibility of a decline for this pair, and we may also witness the formation of a negative pattern known as a rising wedge, but to confirm the decline for this pair, the level of 0.69161 must be maintained. Not recording a top above, and breaching 0.65853, and recording a bottom below
Note: The Australian dollar is awaiting on Tuesday morning, December 6th, the interest rate decision by the Central Bank of Australia, as expectations indicate that interest rates will be raised by 25 basis points, to reach a rate of 3.10%

New Zealand Dollar against US Dollar

The New Zealand dollar pair against the US dollar is trading in a general bullish trend over the medium and long term, and is approaching the resistance line located at the level of 0.64614
The first scenario, if the level of 0.64614 is breached and a top is recorded on the above daily frame, it will represent a serious positive sign for more rise for this pair.
The second scenario, after touching the level of 0.64614, and the price rebounds from it, and records a bottom below the level of 0.63282 on the four-hour chart, as this will be the first negative sign for this pair.
The third scenario, in succession to the second scenario, further decline and recording a low of 0.61568 on the daily frame, which indicates confirmation of the trend change from bullish to bearish

The most important economic data and news for this week

Monday, December 5th

US Dollar: Services PMI

Tuesday, December 6th

Australian dollar: rate decision by the Australian central bank

Wednesday, December 7th

Australian dollar: Gross domestic product
Canadian Dollar: The interest rate decision issued by the Bank of Canada

Thursday, December 8th

Eurozone: Speech by European Central Bank President Christine Lagarde

Friday, December 9th

US Dollar: producer price index
Prelim UoM Consumer Sentiment