Euro Analysis 08.10.2021

The single currency, the euro, fluctuated in a narrow range tilted to the downside during the Asian session to reflect its stability near its lowest since July 2020 and to prepare for its fifth consecutive weekly losses against the US dollar on the cusp of developments and economic data expected today, Friday, by the German economy, the largest economy in the region The euro and the US economy is the largest economy in the world.

At exactly 06:59 am GMT, the euro pair fell against the US dollar by 0.07% to 1.1542 levels, compared to the opening levels at 1.1550, after the pair achieved its lowest level during the trading session at 1.1541, while it achieved its highest at 1.1560.

The markets are looking forward to Germany to reveal the seasonally adjusted reading of the trade balance index, which may show the surplus shrinking to 15.7 billion euros, compared to 17.9 billion euros last July, amid expectations that the export reading would show stable growth at 0.5% during August and showed Imports increased by 1.8% compared to a 3.8% decline in July.

On the other hand, investors are currently awaiting the release of labor market data by the US economy, with the release of a reading of the employment change index for sectors other than agricultural, which may reflect 490 thousand jobs added compared to 235 thousand jobs added last August, and a reading of unemployment rates may appear. A decrease to 6.9% compared to 7.1%, while the average hourly earnings index may indicate a slowdown in growth to 0.4% compared to 0.6% in August.

This comes before the release of the final reading of the wholesale inventories index, which may confirm a growth of 1.2%, unchanged from the initial reading for the month of August, and compared to 0.6% in July. to extend the debt ceiling to early December and that he hopes to complete it soon, after his meeting with Republican House Minority Leader Mitch McConnell.

Technical Analysis

The narrow range dominated the euro against the dollar's trading yesterday, and it hovers around the 1.1563 level, maintaining its stability below it, to keep the bearish trend scenario valid as it is without change, waiting to visit the 1.1500 then 1.1420 levels as main targets.

It should be noted that breaching 1.1563 and holding above it will lead the price to achieve intraday gains, targeting 1.1635 then 1.1700 mainly.

The expected trading range for today is between 1.1460 support and 1.1620 resistance

The forecast general trend for today: Bearish