EURUSD Analysis 14.02.2019

The single currency of the European Union region fluctuated in a narrowly bullish range during the Asian session to see its lowest bounce since November 13 on the eve of developments and economic data expected Thursday by the Eurozone economies and the US economy, the world's largest economy.

At 05:23 GMT, the EURUSD pair was up 0.13% to 1.276, compared to the opening at 1.1261 after a, its three-month low at 1.1250, while its highest at 1.1284.

The markets are currently waiting for the euro zone's largest economy to release the seasonally adjusted quarterly GDP reading for the fourth quarter, which could reflect a 0.1% expansion versus a 0.2% contraction in the third quarter, while the seasonally adjusted annual reading of the same index may show slower growth To 0.8% compared to 1.1% in the previous third quarter reading.

This comes before we see the economies of the region as a whole disclosure of the seasonally adjusted quarterly GDP reading for the fourth quarter, which may reflect a stable growth of 0.2%, unchanged from the previous reading of the third quarter, as may show the same annual reading of the stability index Growth at 1.2% is also little changed from the previous year's reading for the third quarter.

On the other hand, investors are currently looking for the US economy to reveal the reading of retail sales, which account for about half of consumer spending, which represents more than two thirds of the United States GDP, which may reflect a slowdown in growth to 0.1% compared to 0.2% in November last year, While the core reading of the retail sales index may show stability at zero versus 0.2% in November.

The markets are also looking for the PPI, which is a preliminary index of inflationary pressures, which could reflect a 0.1% expansion versus a 0.2% contraction in December, while the annual reading of the same index may show a slowdown of growth to 2.1% versus 2.5% in the previous annual reading for the month of December.

The core reading of the PPI shows a 0.2% growth versus 0.1% contraction in December, while the core annualized reading of the same index may show a slowdown in growth to 2.5% versus 2.7% in the previous December reading, A reading of the index of aid applications, which may reflect a decline of 9 thousand requests to 225 thousand applications during the week of the ninth of this month.

Technical Analysis

The EUR / USD pair is trading below the 1.1300 level after yesterday's strong decline, reinforcing the bearish outlook for the coming sessions, supported by the negative momentum formed by SMA 50, awaiting the visit of 1.1180 which is our next main target.

Keep in mind that the continuation of the current bearish wave requires stability below 1.1365 and above 1.1443.

The trading range for today is among the key support at 1.1180 and resistance at 1.1365

Support and resistance:

Support: 1.1216-1.1181

Resistance: 1.1307-1.1357-1.1390

The general trend for today is bearish