EURUSD Analysis 30.01.2019

The single currency of the European Union region fluctuated in a narrow upward range during the Asian session to see its fifth session retreat since December 14 against the US dollar on the brink of economic developments and data expected Wednesday by Eurozone economies and the US economy. Including the decisions and directions of monetary policy makers at the Fed.

At 04:58 GMT, the EURUSD rose 0.05% to 1.1439 compared to the opening at 1.1433 after the pair hit a session high of 1.1444 and a low of 1.1428.

The markets for the second largest economy in the region are looking for the initial reading of the GDP index, which may reflect a slowdown in growth to 0.2% versus 0.3% in the third quarter. The annualized index may also show a slowdown of 0.9% to 1.4%. We are seeing the release of the French consumer spending index, which may reflect a stable decline of 0.3% during December.

Investors in the region's biggest economies are also looking for inflation data to be released as the consumer price index preliminary reading, which may show a contraction of 0.9% versus 0.1% in December, while the initial reading of the same index may show a slowdown of 1.6% versus 1.7% In the annual reading for the month of December.

The markets are also looking for Germany to release the import price index, which may reflect a contraction of the decline to 0.8% from 1.0% in November, while the annual reading of the same index may show a slower growth to 2.1% compared to 3.1% in the previous year's reading. In conjunction with the disclosure of a statistical reading of the German consumer confidence index GFK, which may reflect the contraction of the breadth to 10.3 compared to 10.4 in January.

On the other hand, markets are currently looking for the US economy to reveal preliminary data for the labor market with the publication of the index of change in private sector jobs, which may reflect the slow pace of job creation to 180 thousand added jobs compared with 271 thousand jobs added in December, Hours before the disclosure of the monthly report of non-agricultural jobs and unemployment rates in addition to the average income per hour for the month.

Before we see the release of housing market data with the release of new home sales, which may reflect a rise of 0.8% from a 0.7% decline in November, to the event of today's decisions and directions of the Federal Open Market Committee amid expectations to keep interest on Federal funds at between 2.25% and 2.50% and move forward in reducing bond repurchase by $ 50 billion per month.

Technical Analysis

The EUR / USD pair continues to fluctuate around 1.1443 and is trying to breach it. As mentioned yesterday, the price needs to confirm the breach to activate the bullish scenario over the short and short term and then rush towards 1.1550 and 1.1705 as the next key targets.

On the other hand, the failure of the breach will put the price under negative pressure again, to head towards the levels of 1.1300 then 1.1181 initially.

Thus, we continue to neutralize until the price confirms the position towards the level of 1.1443, noting that the conflict between the positive move above the 50 MA and Stochastic negativity remains.

The trading range for today is among the key support at 1.1330 and resistance at 1.1530

The expected general trend for today: neutral