EURUSD Analysis 24.12.2018

The single currency of the European Union region fell during the US session last Friday to see its rebound to its second highest session since November 7, while it is still in weekly gains against the US dollar following developments and economic data that followed on Friday the economies of the eurozone and the economy. The largest economy in the world.

At 05:04 pm GMT, the EURUSD dropped 0.38% to 1.1402 compared to the opening at 1.1446 after the pair reached a low of 1.1383 and a high of 1.1474.

We also followed Germany's import price reading, which showed a 1.0% drop from 1.0% in October, while the annualized reading showed slower growth to 3.1% versus 4.8%, in conjunction with a statistical reading of the GFK Consumer Confidence Index The German currency has stabilized at 10.4, unchanged from the previous reading for December, beating expectations of a 10.3 contraction.

This came before the French economy saw a final reading of Gross Domestic Product, which showed a 0.3% expansion from the previous preliminary reading of the third quarter and expectations of 0.4%, while the final annual reading of the index showed a stable growth of 1.4%, leading to the publication of the French consumer spending, 0.3% versus 0.9% in October, worse than expectations for stability at zero levels.

On the other hand, we followed the US economy to reveal the final reading of GDP for the third quarter, which showed the widest economy in the world 3.4% compared to the previous reading and expectations of growth of 3.5%, compared to growth of 4.2% in the second quarter, while reading GDP growth of 1.8% compared to the previous reading and expectations of growth of 1.7%, versus 3.0% growth in the second quarter.

This came in tandem with the Durable Goods Index, which accounts for almost half of consumer spending, which accounts for more than two-thirds of US GDP, which rose 0.8% from 4.3% in October, below expectations for a 1.6% rise. The core reading of the index itself showed a 0.3% drop from 0.2% in October, in contrast to expectations of a 0.3% growth rate.

We also followed the release of personal income and expenditure data last month, which showed a slowdown in personal income growth to 0.2% from 0.5% in October, worse than expectations for a slowdown in growth to 0.3%. 0.4% versus 0.8% in October, beating expectations that growth slowed to 0.3%.

The reading of Core Personal Consumption Expenditures showed growth stability at 0.1%, unchanged from October, below expectations for an acceleration of growth of 0.2%, while the reading of personal consumption depressing slowed growth to 0.1% vs. 0.2% As opposed to expectations for stability at zero levels, and the annual reading of the same index showed a slowdown in growth to 1.8% in line with expectations versus 2.0%.

This came in conjunction with the second and final reading of the University of Michigan Consumer Confidence Index, which showed a widening to 98.3 compared to the previous reading of the previous month and the previous reading for the month of November at 97.5, exceeding the expectations that indicated a widening at 97.6, with the sub-report of the index Economic conditions expanded to 116.1 versus 112.3 and economic expectations expanded to 87.0 versus 88.1.

Technical Analysis

The EURUSD confirmed stability below 1.1443 after Friday's closing below it, to reactivate the bearish scenario over the short and short term, targeting 1.1300 and 1.1181 after breaching the previous level.

Moving averages are moving close to each other as the SMA 50 has fallen to near the level at which the averages are moving 7-20 and price fluctuation is moving around these averages

Stochastic is providing a negative signal to support the expected decline, which requires stability below 1.1443, noting that the markets may witness a quiet trading today due to the holiday of most major banks.

The trading range for today is expected among 1.1300 support and 1.1443 resistance

Support and resistance:

Support: 1.1341-1.1300-1.1200

Resistance: 1.1386-1.1443-1.1500

The general trend for today is bearish