EURUSD Technical analysis 09.11.2018

The single currency of the European Union region fluctuated in a tight range to retreat during the Asian session to see its rebound to its third-highest session since October 22 against the US dollar on the eve of economic developments and data expected on Friday by Eurozone economies and the US economy. The world economy and the forthcoming talk of Fed Governor and Federal Open Market Committee member Randall Cowards about financial regulation at the Brookings Institution in Washington.

At 05:06 GMT, the EURUSD fell 0.15% to 1.1346, compared to the opening at 1.1363 after hitting its lowest since early November at 1.1341, while the highest of the session at 1.1369 .

The markets are currently waiting for the release of the Industrial Production Index, which may reflect a 0.3% drop from 0.3% in August. Meanwhile, Italian bond yields rose following the European Union's warning that a budget deficit The government of Italy, the region's third-largest economy, will move dangerously near the Union's borders by three percent.

On the other hand, investors are looking for the US economy to release the Producer Price Index (PPI), a preliminary index of inflationary pressures that could reflect a 0.2% growth in stability, unchanged from September, while the annual reading of the same index may show slower growth To 2.5% from 2.6% in the previous annual reading for September.

In the same context, the core reading of the PPI may show a 0.2% growth rate unchanged from September, while the Core Annual Report itself may show a slowdown in growth to 2.3% versus 2.5% before we see The final reading of the Wholesale Inventories Index, which may reflect a stability of 0.3%, is largely unchanged from the previous reading for September and 1.0% in August.

To the initial reading of the University of Michigan Consumer Sentiment Index, which could reflect a narrowing to 98.0 versus 98.6 last October, after the FOMC meeting ended in which monetary policy makers agreed to stay short of benchmark interest rates Term trading at between 2.00% and 2.25%, which was expected by market analysts.

Technical Analysis:

The EUR / USD pair continues to show negative trading after confirming the completion of the previously mentioned bearish flag formation, reinforcing the chances for the continuation of the bearishness over intraday and short term basis, with its first target at 1.1300, noting that breaking this level will extend the bearish wave to reach To 1.1181.

This is supported by the indicators as the Stochastic is in the overbought level and the MACD is beginning to give bearish signals. All trades are below the average line of the Bollinger Index and near the bottom line while at the same time the moving averages sma7-sma20and sma50 are pushing on   the price and further downward.

Therefore, we will maintain our bearish bias unless the 1.1443 level is breached and stability above it.

The trading range for today is expected among the 1.1250 support and 1.1400 resistance

Support and resistance:

Support: 1.1300-1.1250-1.1180

Resistance: 1.1394-1.1450-1.1490

The general trend for today is bearish