EURUSD Analysis 01.02.2019

The single currency of the European Union region fluctuated in a narrowly bearish range during the Asian session as it rebounded to its second-highest session since January 11, while still on its second straight weekly gain after last month's third monthly gain Respectively, against the US dollar on the eve of developments and economic data expected Friday by the economies of the eurozone and the US economy, the largest economy in the world.

At 5:15 am GMT, the EURUSD dropped 0.06% to 1.1441, compared to the opening at 1.1448 after the pair hit a session low of 1.1438 and a high of 1.1450.

Investors are currently waiting for the Spanish economy, the region's fourth-largest economy, to release the Manufacturing PMI, which may reflect a contraction of 50.5 versus 51.1 last December, ahead of the same indicator for Italy, the third-largest economy in the region. The contraction widened to 49.0 versus 49.2 in December.

Before we see the final reading of the Industrial PMI for both France and Germany, which may reflect stability at 51.2 in France versus 49.7 in December and a contraction of 49.9 in Germany versus 51.5 in December. And the final reading of the euro-zone index as a whole may show stability at 50.5 versus 51.4 in December.

Leading to an annual CPI reading for the economies of the region as a whole, which may reflect a slowdown in growth to 1.4% from 1.6% in December, while the core annual reading of the index itself may show 1.0% growth stability. Donald Tusk said yesterday that European Commission President Jean-Claude Juncker said negotiations would not be opened on Britain's exit from the European Union.

On the other hand, markets are looking for the US economy to reveal labor market data for the month of December, which could reflect the stability of unemployment rates at 3.9% for the second month in a row after rising in December for the first time in four months from the lowest in nearly five decades of With average earnings per hour reflecting a slowdown in growth to 0.3% versus 0.4% in December.

The markets are also looking at the Non-Farm Payrolls, which may reflect a slower pace of job creation to 165,000 jobs versus 312,000 jobs added in December, before we see the final reading of the PMI by Market on the US last month, which may reflect the stability of the widening at a value of 54.9 versus 53.8 in December.

And the index of the Industrial Supply Institute index, which may show the stability of the widening at 54.1, unchanged from December, while the reading of the same indicator, measured in prices may narrow the breadth to 54.4 compared to 54.9, in conjunction with the final reading of the index Wholesale stocks that may reflect slower growth to 0.5% vs. 0.8% last November,

In addition to a reading of the Construction Spending Index, which could rise 0.2% from 0.1% in November and the final reading of the University of Michigan Consumer Confidence Index, which may reflect a widening to 90.8 from January's reading, January at 90.7 versus 98.3 in December, as well as consumer expectations of inflationary pressures for a year and five years.

This comes just hours after the FOMC meeting on 29-30 January, which left the committee on federal funds rates at between 2.25% and 2.50% with a further reduction in bond buybacks of $ 50 Billion dollars a month before Federal Reserve Governor Jerome Powell said the Fed would be patient about raising interest rates in the coming period.

Technical Analysis

The EURUSD ended yesterday's trading above 1.1443, with opportunities to resume the expected bullish trend for the coming period, targeting 1.1550 and 1.1705 as the next major stops.

SMA 50 continues to support the suggested bullish wave, noting that a break of 1.1443 and stability below it will return the price to the downside which has its next targets at 1.1300 and 1.1181.

The trading range for today is among the key support at 1.1370 and resistance at 1.1550

Support and resistance:

Support: 1.1443-1.1386-1.1341

Resistance: 1.1512-1.1583-1.1684

The general trend for today is bullish