EURUSD Analysis 29.11.2018

The single currency of the European Union region rose during the Asian session to see its second-lowest session since November 14 against the US dollar on the brink of developments and economic data expected Thursday by the Euro-zone economies and the US economy, Mario Draghi at the Global Forum on Research on International Macroeconomics and Finance in Frankfurt and the release of the semi-annual report on financial stability review by the European Central Bank.

At 05:24 am GMT, the EURUSD rose 0.20% to 1.1389, compared to the opening at 1.1366 after the pair hit a session high of 1.1390 ​​and a low of 1.1363.

The markets are looking for the second largest economy in the region to detect the second reading of the GDP index, which may reflect the stability of widening at 0.4%, unchanged from the initial reading of the third quarter compared to 0.2% growth in the second quarter, as shown by the annual reading of the index The same growth stability of 1.5% also remained unchanged from the previous annual reading of the previous third quarter, compared to 1.7% in the second quarter.

With a reading of the French Consumer Spending Index, which could reflect a 0.5% rise from a 1.7% drop in September and ahead of the forthcoming ECB President Mario Draghi's speech in Frankfurt before we see the initial CPI reading for Spain the fourth-largest economy in the euro zone, which could reflect slowing growth to 2.0% from 2.3% in October.

Investors in the region's biggest economies are also looking for a preliminary reading of the consumer price index, which could show a 0.2% growth in the index, unchanged from last month's reading, while the index's annual reading may slow to 2.4% from 2.5% Last month. Leading to the reading of Germany's unemployment change, which may show a decline in the number of people to 10 thousand versus 11 thousand in the previous month.

On the other hand, investors are currently looking for the US economy to reveal spending and personal income data that may reflect a stable personal spending growth of 0.4%, unchanged from last September, and personal income growth accelerated to 0.4% from 0.2% in September (September), while the reading of the Personal Consumption Expenditures (PPI) indicator may show a 0.2% growth rate unchanged from September.

This comes in conjunction with the reading of the index of requests for aid for the week ending on 24 of this month, which may reflect a decrease of 3 thousand requests to 221 thousand requests in the previous weekly reading, while the reading of the index of continuing claims for the week ending on 17 of this month, 3 thousand requests to 1,671 thousand applications against 1,668 thousand applications in the previous weekly reading.

Investors are also looking to release housing data, which may reflect the acceleration of new home sales growth to 0.8% from 0.5% in September, while the same year's annual reading may show a contraction of 2.8% versus 3.4% in September's annual reading, Before we see the Federal Reserve issued the minutes of the Federal Open Market Committee meeting held on the seventh and eighth of this month in Washington.

This came hours after Federal Reserve Governor Jerome Powell said Wednesday at the New York State Economic Center, under the headline "Federal Reserve Framework for Financial Stability Control", that the federal funds' interest is "slightly lower" than neutrality, Markets as a possible moderation in the pace of tightening monetary policy by monetary policy makers at the Fed.

Technical analysis:

The EURUSD pair traded around 1.1380 after yesterday's bullish rally, keeping the downside scenario intact so far, relying on stability below 1.1443, supported by negative pressure from SMA 50.

Our targets start with breaking 1.1300 to confirm the trend towards 1.1181 as the next major target, taking into account that a break of 1.1443 will stop the expected decline and lead the price for gains starting at 1.1550 and extending to 1.1705.

The trading range for today is expected among the 1.1280 support and the 1.1443 resistance.

Support and resistance:

Support: 1.1341-1.1292-1.1210

Resistance: 1.1386-1.1443-1.1500

The general trend for today is bearish.