EURUSD Analysis 14.12.2018

The single currency of the European Union (EU) region fell during the US session to see its rebound to a third session in four sessions since November 20 against the US dollar following developments and economic data that followed Thursday on the economies of the euro zone and the US economy, the world's largest economy. Including the decisions and directions of the ECB monetary policy makers.

At 05:43 pm GMT, the EURUSD dropped 0.13% to 1.1354 compared to the opening at 1.1369 after the pair reached a low of 1.1331 and the highest at 1.1393.

We have followed Germany's final reading of the consumer price index, which showed a stable growth of 0.1%, unchanged from the prior November preliminary reading in line with expectations, versus 0.2% growth in October, before the disclosure of reading Of the same index for France, which showed a contraction of 0.2%, unchanged from initial reading and 0.1% growth in October.

This came ahead of the European Central Bank meeting, during which the interest rate was maintained at current zero levels and the marginal lending rate stabilized at 0.25% while maintaining a negative deposit rate of -0.40% amid the confirmation of the expiry of the quantitative easing program by the end of the month. , To the press conference of ECB Governor Mario Draghi, who followed the meeting.

Draghi noted that the European Central Bank expects interest rates to stabilize at zero levels until at least the summer of 2019 or later, in line with the need to stabilize inflation near the target of 2 percent in the near term, adding that the path of monetary policy is subject to developments in the economic situation in the coming periods, That the economies of the eurozone still need to continue some of the expansionary monetary policy measures.

On the other hand, we followed the release of the reading of the index of US claims for the week ending on the eighth of this month, which showed a decline of 27 thousand requests to 206 thousand requests in the previous weekly reading, compared to expectations of 226 thousand applications, For the week ending with the beginning of this month, up 25 thousand applications to 1,661 thousand applications, worse than the expectations at 1,649 thousand applications.

The import price index, which showed a drop of 1.6% from 0.5% in October, was worse than the 1.0% expected. The markets are currently looking to unveil the Treasury budget reading, which may reflect a widening deficit to 193.5 Billion compared to $ 100.5 billion in October.

Technical Analysis

The EUR / USD pair is fluctuating around the 1.1360 level after approaching the 1.1400 level today, so that the downside scenario remains intact, relying on stability below 1.1443, supported by SMA 50, with a reminder that our awaited targets start at 1.1300 and then 1.1181.

Stochastic is trading near the oversold area in a sideways path that does not provide any clear signals for price action

Support and resistance:

Support: 1.1341-1.1300-1.1210

Resistance: 1.1386-1.1443-1.1500

The general trend for today is bearish