EURUSD Analysis 08.04.2019

The single currency of the European Union region fluctuated in a narrow upward range during the Asian session to see its rebound for the second session in five sessions from its lowest since March 7, when its lowest since June 27, 2017, against the US dollar. It was tested on Economic developments and data expected on Monday by the economies of the euro area and the US.

At 04:30 GMT, the EURUSD rose by 0.11% to 1.1228 in comparison to the opening at 1.1217 after reaching a high of 1.1214 and a low of 1.1232.

The markets are currently looking ahead to Germany's biggest economy for the reading of the trade balance, which could reflect a widening surplus to 19.0 billion euros from 18.5 billion euros in January before we see the Sintex Consumer Confidence Index for the region as a whole. It shows contraction shrinking to a value of 1.7 versus 2.2 in March.

Otherwise, on Friday we followed up the European Commission's suspension of British Prime Minister Theresa May's request to delay the UK's exit from the European Union until the end of June. The decision to postpone the EU summit will take place at the upcoming EU summit of the 10 EU member states this April in Brussels with a unanimous decision by EU members.

Investors are waiting for the US economy to read the factory demand index, which may reflect a decline of 0.5% against January's 0.1% rise. This comes hours after the release of data on the US labor market, which came on Friday and on the eve of disclosure on the minutes of the meeting of the Federal Open Market Committee held on 19-20 March after Wednesday.

Technical analysis:

The narrow range continues to dominate the EURUSD pair. It remains below the broken main support seen in the picture while Stochastic is gradually losing its positive momentum.

Therefore, we will maintain our bearish outlook for today. The price needs to breach 1.1180 to confirm the rally towards 1.1100 as a next stop noting that the continuation of the expected decline requires stability below 1.1300.

The trading range for today is expected between 1.1140 and 1.1300 support.

The general trend for today is bearish.