Euro Analysis 06.10.2021

The single currency, the euro, fluctuated in a narrow range tilted to the downside during the Asian session, to witness its rebound to the third session from its highest since September 29, when it reflected the worst daily performance in three months against the US dollar on the cusp of developments and economic data expected today, Wednesday by the economies of the region. The euro and the US economy is the largest economy in the world.

At exactly 06:44 am GMT, the euro pair fell against the US dollar by 0.09% to 1.1586 levels, compared to the opening levels at 1.1597, after the pair achieved its lowest level during the trading session at 1.1583, while it achieved its highest at 1.1601.

The markets are looking forward to Germany, the largest economy in the euro area, for the release of the factory orders index, which may show a decline of 2.3% compared to a rise of 3.4% last July, and this comes before we witness from the economies of the euro area as a whole the disclosure of the retail sales index, which may It reflects an increase of 0.7% compared to a decline of 2.3% in July, while the annual reading of the same indicator may indicate a slowdown in growth to 0.4% compared to 3.1%.

On the other hand, investors are awaiting the release of preliminary data on the labor market by the US economy, with the release of a reading of the change in private sector jobs, which may reflect the acceleration of job creation to 425,000 jobs, compared to 374,000 jobs last August, hours before the disclosure Tomorrow, Friday, the monthly report on jobs except for agricultural and unemployment rates, in addition to the average hourly income for the last month.

This comes before we witness a speech by a member of the Federal Open Market Committee and President of the Federal Reserve Bank of Atlanta, Rafael Bostik, about the rural economy at the American Rural Prosperity Summit in Georgia, before giving another talk to him in a lecture at the University of Georgia on public leadership, and this comes in conjunction with the aspiration of Investors in financial markets for details about the Federal Reserve's plans to reduce its $120 billion in bond purchases per month.

Technical Analysis

The EURUSD pair continues its quiet decline, approaching the 1.1563 level, while the EMA50 forms continuous negative pressure in front of the price, waiting to break the mentioned level to push towards our expected main target at 1.1500.

In general, the bearish trend scenario will remain valid and active unless 1.1645 is breached and stability above it.

The expected trading range for today is between the 1.1500 support and the 1.1645 resistance

The forecast general trend for today: Bearish