EURUSD Analysis 05.12.2018

The single currency of the European Union region fell during the Asian session to see its rebound for the second straight session since November 23 against the US dollar on the eve of developments and economic data expected Wednesday by the Euro-zone economies amid tight economic data on Wednesday. Ahead of the US economy, the largest consumer and producer of oil globally because of the official holiday, which was approved by President Donald Trump, a mourn to honor former US President George H. W.

At 05:30 GMT, the EURUSD fell 0.18% to 1.1323 compared to the opening at 1.1343 after the pair reached a low of 1.1318 and a high of 1.1346.

The markets are looking for Spain's fourth-largest economy to reveal the PMI service index, which may show a contraction of 53.9 versus 54.0 last October. Before we see ECB Governor Mario Draghi's opening remarks at a conference European Central Bank on banking supervision in Frankfurt.

This comes ahead of Italy's third largest economy, the PMI reading, which reflects the stability of the contraction at 49.2, unchanged from October, and the final reading of the same index for both France and Germany, the region's biggest economy Which may show stability at 55.0 in France against 55.3 in October and 53.3 in Germany against 54.7.

The final reading of the euro zone PMI may also show stability at 53.1 versus 53.3 in October, leading to the Retail Sales Index reading for the region's economies as a whole, which could reflect a 0.2% rise versus a zero-point rally in September. , While the annual reading of the same index may show growth accelerating to 2.0% versus 0.8% in September's annual reading.

Technical analysis:

The EUR/USD pair is trading around the 1.1330 level after yesterday's strong decline as SMA 50 continues to push the pair lower, while Stochastic is beginning to cross negatively.

Therefore, these factors encourage us to continue the bearishness in the coming sessions, targeting 1.1300 and then 1.1181 as the next major stations, noting that the continuation of the expected decline depends on stability below 1.1443.

The trading range for today is expected among 1.1240 support and 1.1400 resistance.

Support and resistance:

Support: 1.1341-1.1294-1.1210;

Resistance: 1.1386-1.1443-1.1510.

The general trend for today is bearish.