EURUSD Analysis 24.01.2019

The single currency of the European Union region fluctuated in a narrow upward range during the Asian session to reflect its rebound to its third-lowest session since January 3 against the US dollar on the eve of developments and economic data expected Thursday by the Eurozone economies and the US economy. The world economy, which guarantees the decisions and directions of the European Central Bank and Congress vote on a bill aimed at ending the partial closure of the federal government, which is the longest in the history of the United States.

At 04:12 GMT, the EURUSD rose 0.07% to 1.1389, compared with the opening at 1.1381, after reaching the highest level at 1.1391 while the lowest at 1.1379.

The markets are looking for both the French economy, the German economy and the Eurozone economies as a whole. The initial reading of the Markit Index for Industrial and Service Purchasing Managers for January, which may reflect the expansion of the industrial and service sectors in France, the contraction of the industrial sector and the expansion of the service sector in Germany, Industrial and service sector in the economies of the region as a whole.

This comes ahead of the European Central Bank meeting, which is expected to keep interest rates at current zero levels and stabilize the marginal lending rate at 0.25% while staying at a negative deposit rate of -0.40% Draghi during the press conference of the European Center.

On the other hand, US investors are looking ahead to the January 19 reading of the Jobless Claims Index, which could reflect a rise of 6K to 219K last week, before we see the initial reading of the Managers Index Industrial Procurement and Service Markit for the United States and the release of leading indicators for the last month.

Markets are also looking to the US Senate vote on Democratic-backed legislation to end the partial closure of the federal government, which is in its fifth consecutive week, knowing that US President Donald Trump has repeatedly noted that he did not approve interim funding for the government by Congress Unless it includes the financing package for a border wall with Mexico.

Technical Analysis

The EUR / USD pair has found it difficult to break the support of the ascending channel so far, showing some slight upside and testing SMA 50 which continues to form a good resistance to the price.

Overall, we continue to push the downside move steady below 1.1443, as a breach will push the pair to gains starting at 1.1550 and extend to 1.1705, while the break will need 1.1350 to confirm the opening of the way toward 1.1181 which is our next main target.

The trading range for today is expected among 1.1300 support and 1.1460 support

Support and resistance:

Support: 1.1341-1.1300-1.1211

Resistance: 1.1386-1.1443-1.1512

The general trend for today is bearish