EURUSD Analysis 22.02.2019

The single currency of the European Union region fluctuated in a narrowly bearish range during the Asian session to see its rebound for a third straight session since Feb. 6 against the US dollar on the eve of economic developments and data expected on Friday by Eurozone economies, European Central Bank Governor Mario Draghi at the University of Bologna, and is looking forward to speaking with members of the Federal Open Market Committee in New York.

At 04:59 GMT, the EURUSD dropped 0.01% to 1.1335 compared to the opening at 1.1336 after recording a low of 1.1332 and a high of 1.1342.

German markets are looking for the end of GDP reading for the fourth quarter, which may reflect stable stability at zero levels for the eurozone's largest economies, unchanged from the previous reading and 0.2% contraction in the third quarter. The same growth stability of 0.6% and the seasonally adjusted annual reading of the index may show a 0.6% growth.

This comes ahead of Germany's reading of the IFO Business Climate Index, which may reflect a contraction of 99.0 vs. 99.1 in January, while the same indicator of expectations may show widening stability of 94.2, The same as the current assessments, which narrowed to 103.9 from 104.3 last month.

Leading to inflation data for the whole eurozone as the final reading of the Consumer Price Index (CPI), which may reflect a stable 1.4% growth, was unchanged from the previous January preliminary reading, as the final core annual reading The same index stabilizes growth to 1.1%.

Otherwise, European Commission President John Claude Juncker on Thursday described Britain's exit from the European Union as a real disaster, pointing out that the exit is the past of the United Kingdom and not its future, adding that he does not rule out Britain's exit from the EU without an agreement, In the avoidance of the worst, and the statement that he is not optimistic about the broad, and is expected to issue a report on Italy next week.

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 pair continues to fluctuate between the pivotal levels of 1.1310 and resistance at 1.1380, so there is no change to our neutral position, as we wait to breach one of these levels to define the next targets more precisely.

We will mention that breaching the resistance will push the price to resume positive attempts and achieve targets starting at 1.1443 and then 1.1550, while breaking the support will put the price under negative pressure targeting the test of 1.1180 mainly.

The trading range for today is among the key support at 1.1240 and resistance at 1.1430.

The expected general trend for today: neutral.