EURUSD Analysis 03.04.2019

The single currency of the European Union region rose during the Asian session to rebound to its second-lowest session since March 7 when its lowest since June 27, 2017, against the US dollar on the trough of economic developments and data expected on Wednesday by the economies of the euro area and the US economy.

At 05:22 GMT, the pair rose 0.16% to 1.1222, compared with the opening at 1.1204, after reaching a high of 1.1227, while reaching a low of 1.1201.

Investors are currently looking for the PMI to show a reading of 55.0 versus 54.5 in February, and the same indicator for Italy, the third largest economy in the region, could see a widening of 50.9 Compared with 50.4 in February.

Before the final reading of the PMI for France and Germany, which may show deflation stabilizing at 48.7, little changed from the previous reading in France last month, compared with a widening of 50.2 in February, stability of 54.9 in Germany versus 55.3. The final reading of the index for the eurozone as a whole may reflect the widening stability at 52.7 and 52.8 in February.

And to the release of retail sales reading for the eurozone as a whole, which may show growth slowing to 0.2% from 1.3% in January. The same annualized reading may show that growth slowed to 1.5% versus 2.2% Yesterday, the EU's top EU commissioner, Michel Barnier, said the possibility of Britain leaving the EU without the agreement was increasing day after day.

On the other hand, markets are looking for the US economy to release preliminary data for the labor market with the reading of the Change in Private Sector Index, which may reflect the acceleration of job creation to 184,000 jobs as opposed to 183,000 jobs in February. On the monthly report of non-farm jobs and unemployment rates in addition to the average income per hour for the last month later this week.

Leading to the final reading of the index of the Institute of Supply Services by Markit from the United States, which may reflect the stability of the breadth at 54.8 compared to 56.0 in February, before the disclosure of the index of the Institute of Supply Service, which may show the narrowing of the breadth to 58.1 compared to 59.7 in February, and we would like to point out, because the supply of services is important in the fact that the service sector in America represents more than two-thirds of GDP there.

Technical analysis:

The EURUSD is finding it difficult to break the 1.1180 level, which represents the 61.8% Fibonacci correction for the entire upside shown in the picture, supported by the Stochastic positive, which may push the price to provide some temporary positive attempts.

So far, however, the main bearish scenario is still likely to hold steady below 1.1300, with the next target at 1.1100, while the break of 1.1300 represents the beginning of recovery attempts with initial targets around 1.1443.

The trading range for today is expected among the key support at 1.1120 and resistance at 1.1280.

The general trend for today is bearish.