EURUSD Analysis 07.02.2019

The single currency of the European Union region fluctuated in a narrowly bearish range during the Asian session to retrace its fifth session in six sessions from its highest since January 11 after Fed Governor Jerome Powell spoke in Washington on the eve of the upcoming economic developments and data On Thursday by the eurozone economies and the US economy, the world's largest economy.

At 04:58 GMT, the EURUSD dropped 0.03% to 1.1359, compared to the opening at 1.1362 after hitting the lowest level since January 25 at 1.1357. 1.1368.

The markets are currently looking ahead to Germany's biggest economy for the Industrial Production Index, which could rise 0.8% from 1.9% in November, while the index's annual reading may shrink to 3.3% from 4.7%. The second-largest economy in the region is seeing France's trade balance reading, which could reflect a contraction of the deficit to 4.1 billion euros from 5.1 billion euros in November.

This comes before we see the release of the ECB's monthly report in conjunction with the release of Italy's third-largest economy, which is expected to show a 0.1% drop from 0.7% in November, to the European Commissioner's economic forecast for the region. , We have followed yesterday the confirmation of European Council President Donald Tusk not to renegotiate the British exit agreement from the European Union.

On the other hand, we followed Fed Deputy Governor and Federal Open Market Committee member Randall Quarles on the stress test for banks at the New York Board of Education, before we see Federal Reserve Governor Jerome Powell speaking at the Virtual Teacher City Hall meeting at the national level. Noting that inequality in income and slow productivity are the biggest challenges of the coming decade.

Powell said slow productivity and a widening wealth gap are the biggest challenges facing the United States over the next decade, adding that his major economic concerns fall outside the purview of the Federal Reserve, with emphasis on the adoption of more aggressive policies to address income inequality. In the middle and lower levels "grew much slower" than wages in the upper limbs.

The markets are currently looking for the US economy to read the Jobless Claims Index for the week ending February 2nd, which may reflect a 33K drop to 220K in the previous week's reading before we see the Federal Reserve Vice President and member of the Federal Market Commission Open Richard Clareda about neutral interest rates at the Czech National Bank conference in Prague.

Technical Analysis

The EUR / USD pair broke the 1.1386 level and closed the daily candle below it, to activate the bearish scenario over intraday basis targeting the 1.1181 as the next major station.

Therefore, the bearish bias will be likely in the coming sessions, supported by the negative pressure formed by SMA 50, noting that the break of 1.1386 and stability above it will stop the suggested decline and bring us back to neutral again.

The trading range for today is expected among 1.1300 support and 1.1440 support

The general trend for today is bearish