EURUSD Analysis 07.12.2018

The single currency of the European Union region fluctuated in a narrowly bearish range during the Asian session against the US dollar following an interview by FOMC member and New York Bank Chairman John Williams in New York, as well as the speech of Federal Reserve Governor Jerome Powell in Washington on the eve of developments and data Economic growth expected Friday by the largest economies of the euro zone Germany and the US economy the largest economy in the world.

At 05:55 GMT, the EURUSD dropped 0.06% to 1.1367, compared to the opening at 1.1374, after reaching a low of 1.1367, while reaching a high of 1.1383.

The markets now look to Germany, the largest economy in the euro area, to release the Industrial Production Index, which may reflect a rapid growth to 0.3% from 0.2% in September. The same index may see growth accelerating to 2.1% vs. 0.8% Ahead of the same indicator for France, the region's second largest economy, which could reflect a rise of 0.8% from a 1.8% drop in September.

In line with the release of the French trade balance, which could reflect a widening deficit to 5.9 billion euros from 5.7 billion euros in September, and before the release of Italian retail sales, which may show contraction of the decline to 0.2% compared to 0.8% in September, The end of the change in employment for the euro area as a whole, which may reflect a stability of 0.2%, unchanged from the preliminary reading for the third quarter, compared to 0.4% in the second quarter last.

Leading to the release of the seasonally adjusted quarterly GDP reading for the euro zone as a whole for the third quarter, which may reflect the stability of the widening of 0.2%, unchanged from the initial reading for the third quarter and against 0.4% in the second quarter. 1.7%, also unchanged from the previous preliminary reading and 2.1% in the second quarter.

On the other hand, we followed Federal Reserve Chairman and Federal Reserve Bank of New York Chairman John Williams in an interview with Mervyn King as part of the London Foundation for Economics meeting in New York before we saw Federal Reserve Governor Jerome Powell talking about the economy, rural America and the economy. Annual event of the Housing Assistance Council in Washington.

Otherwise, markets are currently looking for the US economy to release labor market data for November which could reflect a stable 3.7% unemployment rate for the third straight month at its lowest level in almost five decades, amid expectations that the average income reading The rate of growth accelerated to 0.3% from 0.2% in October.

Investors are also looking for the Non-Farm Payrolls Index, which may reflect a slower pace of job creation, to 198,000 added jobs versus 250,000 jobs in October before the final reading of the Wholesale Inventories Index, which may reflect stability at 0.7%, unchanged from the previous October reading and 0.4% in September.

To the initial reading of the University of Michigan Consumer Sentiment Index, which may reflect a narrowing to 97.0 versus 97.5 last November, before we see the Federal Reserve Committee member for financial stability at the Peterson Institute in Washington as investors look for any hints at The future of monetary policy tightening by monetary policy makers in the Federal Reserve.

Technical analysis:

The EUR/USD pair is trading below the 1.1400 level after yesterday's positive attempts and is under the negative pressure of the SMA50 to support our bearish outlook for the intraday and short term, awaiting 1.1300 and 1.1181 mainly.

Therefore, the negative scenario will remain intact provided that stability remains below 1.1443, while noting the importance of caution during trading today, especially at the time of the release of US economic data which may cause strong and mixed trading in the markets.

The trading range for today is expected between 1.1260 and 1.1443 support.

Support and resistance:

Support: 1.1341-1.1294-1.1210;

Resistance: 1.1386-1.1443-1.1500.

The general trend for today is bearish.