EURUSD Analysis 08.02.2019

The euro fell marginally on the European market on Friday against a basket of global currencies, continuing losses for the fifth day in a row against the US dollar, to the lowest level in two weeks recorded earlier in yesterday's trading, after the European Commission sharply lowered its forecast for economic growth in the eurozone this year And next year.

EUR / USD fell less than 0.1% to 07:10 GMT, trading at $ 1.1336, the opening price of $ 1.1338, the highest at $ 1.1344 and the lowest at $ 1.1335.

The euro lost 0.2% against the dollar on Wednesday, its fourth daily loss in a row, hitting a two-week low of $ 1.1324, as US currency purchases continued against a basket of major and minor currencies, coinciding with a gloomy outlook for European economic growth.

Over the course of this week, the single European currency "Euro" lost 1.1% against the US dollar "Dollar" in the first weekly loss during the last three weeks, the biggest weekly loss since late September last.

The loss has led investors to focus on buying the US dollar as the best investment in the foreign exchange market, with the ECB tightening the possibility of tightening monetary policy this year, especially as data and indicators confirm the sharp decline in European economic growth.

The European Commission on Thursday sharply lowered its outlook for economic growth in the euro zone this year and next year, fueled by strong prospects that major EU nations will be drained by internal challenges and global trade tensions.

The eurozone's growth will slow to 1.3% this year from 1.9% growth rate in 2018, before rising to 1.6% by 2020, the commission said. The new estimates are much less optimistic than those issued in November, with Brussels expecting growth At 1.9 percent in 2019 and 1.7 percent in 2020.

In another ECB concern, the EC expects Eurozone inflation to reach 1.4% this year, below the central bank's 1.6% estimate, below the Bank's target of 2.0%.

Technical Analysis

The EURUSD finished yesterday's trading below 1.1370, and negative pressure remains for the coming period supported by SMA 50, awaiting further downside towards our next target at 1.1181.

Keep in mind that breaching 1.1370 and 1.1443 will stop the negative scenario and lead the pair to return to the upside in the short term.

The trading range for today is among the key support at 1.1240 and resistance at 1.1410

The general trend for today is bearish