EURUSD Analysis 29.03.2019

The single currency of the European Union region fluctuated in a narrow upward range during the Asian session to rebound to its second-lowest session since March 8, while it is still the second consecutive weekly loss against the US dollar on the eve of economic developments and data Which is expected on Friday by the Eurozone economies and the US economy, the world's largest economy.

At 4:50 am GMT, the pair rose 0.07% to 1.1229, compared to the opening at 1.1225 after the pair reached a high of 1.1235 and a low of 1.1223.

The markets for Germany, the biggest economy in the eurozone, are looking for a reading of the Retail Sales Index, which may reflect a 1.0% drop from a 3.3% rise in January. The same index may see growth slowing to 2.2% from 2.6%. The reading of the import price index, which may show a rise of 0.5% vs. 0.2% in January.

Ahead of France's second-biggest economy, consumer spending, which could reflect slowing growth to 0.2% versus 1.2% in January, and the release of France's inflation data with the release of a preliminary reading of the Consumer Price Index 0.9% versus stability at zero levels in February.

Leading to the release of labor market data for Germany, which may reflect a contraction of the decline to 10 thousand to 21 thousand in the February Unemployment Change Index and to the initial reading of the consumer price index of Italy, the third largest economy in the euro area, which may show accelerated growth To 0.3% from 0.2% in February.

On the other hand, investors are looking for the US economy to reveal spending and personal income data that may reflect personal spending rose to 0.3% from 0.5% in December and personal income rose to 0.3% from 0.1% December, while the reading of the Personal Consumption Expenditures (CPI) indicator may show growth stabilizing at 0.2% in January.

This comes ahead of the release of the Chicago PMI, which may reflect a contraction of 61.1 vs. 64.7 in February, to reveal housing market data with the release of the New Home Sales Index, which may reflect a 2.1% 625 thousand homes compared to a 6.9% decline at about 607 thousand homes in January.

With the release of the University of Michigan's consumer confidence index, which may reflect the stability of the widening at 95.8, little change from the initial reading this month and 97.8 in February, before we see the upcoming talk of the Federal Reserve Vice President and member of the Federal Market Commission Open Randall Quarles about the overall precautionary policy at the spring meeting of the Open Market Shadow Committee in New York.

Technical Analysis

EURUSD succeeded in confirming the breach of 1.1240 after closing the daily candle below it, pushing towards further decline in the coming period, noting that our next target is at 1.1180, which represents 61.8% Fibonacci retracement of the entire measured height from 1.0333 to 1.2553, indicating the importance and sensitivity of this level in determining the short term and medium term direction.

We note that breaking the target will extend the downside wave to target 1.1100 and go far to 1.0857, while its resistance to the current negative pressure and the rebound to breach the 1.1300 level will stop the bearish wave and lead the price to start recovery attempts targeting the 1.1443 areas initially.

The trading range for today is expected between 1.1130 and 1.1300 support

The general trend for today is bearish