Daily Wrap Up – 22 May 2017

22 May 2017 06:22 PM

During the weekend, the most significant events were the first foreign visit of US President Donald Trump, which included Saudi Arabia, as the White House sought to shift focus away from domestic affairs from its dismissal to the director of the FBI and reports on his administration's ties with Russia.

Trump's achievement of this visit was a $ 110 billion deal whereby Riyadh would buy US weapons with options worth $ 350 billion over the next 10 years.

The meetings of the Euro Group were the most prominent on the economic agenda today, and the most important of those meetings is talk about the start of negotiations with the United Kingdom to get out of the European Union. The Council adopted a resolution authorizing the opening of exit negotiations with Britain and the nomination of the official committee as Commissioner of the European Union, Of the talks.

The European Commission will agree with the British side on the first negotiating sessions, and is likely to be the first such formal meetings in June. The issue of Greece's debt was also on the agenda of today's meetings, and according to the head of the Euro Group, a decision to reduce the debt of the Greek people may be made in 2018.

The most prominent statements today were to German Chancellor Angela Merkel, which blamed the European Central Bank and its policies that plunged the euro currency to its lowest levels, prompting the euro to rise against the US dollar to its highest level since 9 November 2016 at 1.1264. that’s besides her support for French president  Emmanuel Macaron, as confirmed by the German and French finance ministers during their meeting in Berlin today and that France and Germany have a great responsibility to strengthen the euro zone.

Turning to the oil market, markets optimism that oil producers when they meet next Thursday will lead to a new agreement to extend the cut-off agreement until the first quarter of 2018, and this bringing crude to its highest level since April 20 at $ 51.40 a barrel.

Here is a look at the most important technical movements of the market:

EURUSD

As we expected in the morning report that the pair will test the last peak formed to take the bullish momentum and this is what happened the pair climbed above the resistance barrier 1.1210 so we expect to continue rising targeting levels of 1.1300. prices would find Support at 1.1210 and 1.1160.

Gold

After stabilizing above the  1253$ level, we expected in the morning report prices would test resistance at  1258$ and actually achieved it, but it still didn’t get our target of 1262$. Gold support level is 1254.50$.

Oil

Oil prices has gapped up with the beginning of trading week reaching to highest price at 51.23$. current resistance for prices will be at 51.60$ then 52.80$ we expect prices would reach these levels as it stays higher than 50$ levels. Prices would find important support at level of 49.90$.

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