EURUSD Analysis 06.02.2019

The single currency of the European Union region fluctuated in a narrowly bearish range during the Asian session to see its fourth session retreat in five sessions since January 11 after US President Donald Trump delivered a State of the Union address to Congress in Washington on the eve of developments. And economic data expected Wednesday by the largest economies of the eurozone Germany and the US economy the largest economy in the world.

At 0436 GMT, the EURUSD fell 0.06% to 1.1399, compared to the opening at 1.1406 after hitting its lowest level since January 28 at 1.1396, while the highest in the session At 1.1410.

The markets are looking for the largest eurozone economies to show the factory demand index, which may rise 0.3% from 0.1% in November, while the seasonally adjusted annualized reading for the same index may show a drop to 6.7% from 4.3%. The previous annual reading for the month of November.

The German Chancellor Angela Merkel said there was still time to find a political solution to Britain's exit from the EU, stressing the importance of knowing exactly what Britain wanted, and stating that a solution to the Pakstop plan would depend on the trade agreement to be implemented. It is expected that the European Commission President John Claude Juncker will meet with British Prime Minister Teresa Mae on Thursday.

On the other hand, we have followed US President Trump's presentation of the State of the Union address to Congress amid a state of anxiety about a new partial closure of the federal government that shines in the shadows of Trump's determination to establish a border wall with Mexico and the Democrats' refusal to finance the Wall. For the first reading of the single labor cost index, which reflects the acceleration of growth to 1.7% compared to 0.9% in the third quarter last.

The US economy is also closely approaching the preliminary reading of US non-farm productivity, which may show growth slowing to 1.7% versus 2.3% in the third quarter, in conjunction with the November trade balance reading, to $ 54.0 billion from $ 55.5 billion last October.

Technical Analysis

The EUR / USD pair is trading slightly lower today, moving below the SMA 50, on its way to the pivotal support test at 1.1370, which is one of the keys to the next trend along with the 1.1443 resistance. As mentioned yesterday, the price needs to breach one of these levels to define its next targets He explained.

Therefore, our neutral position will remain until we get a clearer signal for the next direction, noting that breaching the mentioned support will press the price towards 1.1181 mainly while breaching the resistance will lead the price to resume the upside targeting 1.1550 then 1.1705 initially.

The trading range for today is expected among 1.1300 support and 1.1500 resistance

The expected general trend for today: neutral