EURUSD Analysis 21.02.2019

The single currency of the European Union region fluctuated in a narrow upward range during the Asian session to see its rebound for the third session in five sessions from its lowest since November 13 against the US dollar on the eve of developments and economic data expected Thursday by Eurozone economies The US economy is the largest economy in the world.

At 05:04 am GMT, the EURUSD rose 0.11% to 1.1350, compared to the opening at 1.1338, after reaching a high of 1.1352, while reaching a low of 1.1333.

The markets for the euro zone's biggest economies are expecting Germany, the final reading of the consumer price index, which could reflect a stabilization of 0.8% contraction, unchanged from the previous December reading, versus 0.1% growth in November, before the disclosure On the final reading of the same index for France, the second largest economy of the region, which may reflect the stability of deflation at 0.5% and against stability at zero.

And the economy of the region as a whole, the initial reading of the Markit index of industrial and service procurement managers for the month, which may reflect the widening contraction of the service sector and the shrinking of the industrial sector in France, the stability of the contraction of the industrial sector and the contraction of the expansion of the service sector in Germany , To the contraction of the expansion of the industrial sector and the breadth of services in the economies of the region as a whole.

This comes ahead of the release of the ECB's monetary policy meeting held on the 24th of last month, during which the interest rate was maintained at current zero levels and the marginal lending rate was stabilized at 0.25% while maintaining a negative deposit rate of -0.40 Investors are looking forward to European Central Bank President Mario Draghi's speech on Friday with an honorary degree from the University of Bologna.

On the other hand, investors by the US economy, the world's largest industrial nation, are looking to release the Philadelphia Manufacturing Index, which may reflect a narrowing to 14.1 versus 17.0 last January, in conjunction with the February 16 Jobless Claims reading Which could reflect a drop of 11K to 228K versus 239K last week.

This comes in conjunction with the release of the Durable Goods Orders, which account for nearly half of consumer spending, which accounts for more than two-thirds of US GDP, which could reflect accelerated growth to 1.6% from 0.7% in November. The core reading of the index itself is up 0.3% from 0.4% in November.

Before we see the preliminary reading of the PMI index for the United States of America for the month of February, amid expectations of the expansion of the service sector to 54.4 compared to 54.2 in January, and the stability of the industrial sector at 54.9 compared to 54.8 With little change from what it was in January.

To the release of housing market data with the release of the existing home sales index, which may reflect a rise of 1.5% to 5.01 million, compared with 6.4% decline at 4.99 million in December, coinciding with the release of the leading indicators for the month of January Which could show a 0.1% rise versus a 0.1% decline in December.

This came hours after the minutes of the Federal Open Market Committee meeting, which was held on 29-30 January, during which Federal Reserve policy makers kept interest rates at between 2.25% and 2.50% Cut bond repurchase by $ 50 billion a month, and the committee said it was determined to be patient and monitor economic data before resuming tightening monetary policy.

Technical analysis:

The EUR/USD continues to fluctuate between the 1.1310 and 1.1380 resistance, keeping our neutrality in place so far, as the pair face a trade-off between the technical factors and the price needs to break through one of the mentioned levels to define its next targets more clearly.

We will note that breaching the resistance will lead the price to achieve more gains that start at 1.1443 and extend to 1.1550 while breaking the support will press the price to resume the bearish trend targeting 1.1180 as the next major station.

The trading range for today is expected between 1.1260 and 1.1440 support.

The expected general trend for today: neutral.