EURUSD Analysis 11.04.2019

The single currency of the European Union region fluctuated in a narrow upward range during the Asian session to see its fourth session rebound in eight sessions from its lowest since March 7 when its lowest since June 26, 2017, against the US dollar on the eve of Developments and economic data expected Thursday by the economies of the eurozone and the US economy, the largest economy in the world.

At 05:03 am GMT, the EURUSD rose 0.05% to 1.1280 compared to the opening at 1.1274, after reaching the highest level in the session at 1.1281, while achieving a low of 1.1267.

The markets are waiting for the euro zone's largest economy to release the final CPI reading, which could reflect a 0.4% growth instability, unchanged from the previous February reading and the previous January reading before the reading was released. Of the same index for France, the second largest economy of the region, which may reflect the stability of growth at 0.8% against stability at zero levels.

On Wednesday, EU leaders and the United Kingdom agreed to extend the deadline for Britain's exit from the EU until the end of October. European Council President Donald Tusk said that this development provides "an additional six months for the United Kingdom to find the best solution" "ECB President Mario Draghi warned of downside risks as he said the euro zone's economic growth momentum was slowing after the ECB decided to stay at zero interest rates.

As we have seen yesterday, the EU's trade commissioner Celisia Malmstrom said that the EU wants to avoid escalating the trade protectionism with the United States, especially with Airbus and Boeing, explaining that Brussels is ready to hold talks with Washington about Boeing and Airbus, American Donald Trump on imposing tariffs on his country's imports of European products estimated at $ 11 billion in response to the support of the European Airbus competition to Boeing Company of America.

On the other hand, the markets are currently waiting for the US economy to release the Producer Price Index (PPI), which is a preliminary index of inflationary pressures, which may reflect a rapid growth to 0.3% from 0.1% in February, while the same index may show growth stability at 1.9 A little less than the previous year's reading for February.

In the same context, the core reading of the PPI may accelerate growth to 0.2% from 0.1% in February, while the core annualized reading of the same index may show a slowdown in growth to 2.4% from 2.5% in the previous reading, Which is expected to rise by 8 thousand requests to 210 thousand applications during the week of the sixth of April this year.

The ongoing jobless claims index may show an increase of 18K to 1,735K during the week of March 30, before the Federal Open Market Committee's meeting with the two Fed Governor Richard Clarda and Michelle Bowman, Bank of New York Federal Reserve and St. Louis Fed John Williams and James Pollard.

This comes hours after the minutes of the meeting of the Federal Open Market Committee held on 19-20 March, which touched on patience and control of developments and economic data with a gradual reduction of the reduction of bond buyback until September, amid the reduction of the Commission's expectations for the pace Growth and raising its unemployment expectations, as well as its expectations of a rate hike this year, while the Committee kept its expectations of raising it once next year and then agreed to stay at rates between 2.25% and 2.50%.

Technical analysis:

The EURUSD pair continues to rise calmly near the 1.1287 resistance, and we still expect more intraday gains to test 1.1350 initially, relying on stability above 1.1235 as a first condition, noting that breaching the target will push the price towards 1.1443 as the next major station.

Keep in mind that breaking 1.1235 and 1.1180 will halt the expected rally and press the price to resume the short term bearish trend, which has the next target at 1.1100.

The trading range for today is expected between 1.1200 and 1.1360 support.

The expected general trend for today: temporarily bullish.