EURUSD Analysis 18.04.2019

The single currency of the European Union region fluctuated throughout the Asian session against the US dollar on the brink of economic developments and data expected Thursday by the Euro-Zone economies and the US economy, the world's largest economy.

At 4:37 am GMT, the EURUSD dropped 0.02% to 1.1294 compared to the opening at 1.1296, after the pair reached a low of 1.1290 and a high of 1.1301.

The markets are currently waiting for the euro zone's biggest economy to see the Producer Price Index (PPI), a preliminary indicator of inflationary pressures, which could reflect 0.2% growth versus 0.1% contraction in February, while the index's annual reading could see growth accelerating to 2.7% Compared with 2.6% in the previous February reading.

This is due to the fact that both the French economy and the economy of the region as a whole have seen the initial reading of the Markit Index for industrial and service purchasing managers this month, which may reflect the shrinking of the service sector, the expansion of the industrial sector in France, the contraction of the service sector and contraction of the industrial sector in Germany, To the contraction of the expansion of the service sector and shrink industrial contraction in the economies of the region as a whole.

Otherwise, we followed yesterday the European Trade Commission, Cecilia Malmstrom, that the European Union may impose customs duties on US products, including aircraft, chemicals in addition to food products, such as frozen fish and citrus estimated at $ 20 billion, explaining that this is part of the work to support European companies compete on fair and equal terms.

Cecilia Malmström recently reported that the European Union would respond to US $ 11 billion tariffs on European goods within two days and that it was ready to start trade talks with the United States at any time, against the background of the dispute between Washington and Brussels The first support of Boeing and the other support to Airbus Europe.

On the other hand, investors are currently looking for the US economy to detect a reading of retail sales, which accounts for about half of consumer spending, which accounts for more than two thirds of US GDP, which could reflect a 0.9% rise versus a 0.2% fall in February, The core reading of the index itself rose 0.7% from 0.4% in February.

This comes in conjunction with the April 13th Jobless Claims reading, which may reflect an 11,000 increase in demand to 207,000 versus 196,000, and the Philadelphia Manufacturing Index, which may reflect a contraction to 11.2 Compared to 13.7 in March, before we saw the initial reading of the PMI Index by the US.

It is expected that the initial reading of the PMI index for America will extend to 52.8 compared to 52.4 in March, while the preliminary reading of the PMI may show a contraction of 55.0 to 55.3, leading to a reading of wholesale stocks that may indicate slower growth To 0.3% versus 0.8% in January, and leading indicators showed accelerated growth to 0.4% versus 0.2% in February.

Technical analysis:

The narrow range continues to dominate the EUR / USD, which continues to fluctuate around the SMA 50 so that there is no change in the expected bullish intraday scenario, which depends on stability above 1.1235 and 1.1180, while its main targets are at 1.1350 and 1.1443.

The trading range for today is expected among the 1.1200 support and 1.1380 resistance

The expected general trend for today: temporarily bullish