EUR Analysis 03.05.2019

The single currency of the European Union region fluctuated in a narrowly bullish range during the Asian session to see its fourth session retreat in six sessions from its lowest since May 30, 2017 and to prepare for the first weekly gain in three weeks against the US dollar on the eve of developments and data Economic outlook on Friday by euro area economies and the US economy, the world's largest economy.

At 04:22 GMT, the EURUSD rose 0.10% to 1.1207 compared to the opening at 1.1196, after reaching a high of 1.1209, while reaching a low of 1.1194.

The markets are looking ahead to Spain's fourth-largest economy to release the services PMI, which may reflect a widening of 50.4 versus 48.9 in March before we see the economies of the region as a whole Detect inflation data with the release of the initial reading of the index Consumer prices, which may reflect the acceleration of growth to 1.6% compared to 1.4% in March, and the core annual reading of the same index may show growth accelerated to 1.0% vs. 0.8%.

This comes in conjunction with the release of inflation data that is less important for the economies of the euro zone as a whole with the PPI reading, which is a preliminary index of inflationary pressures, which may reflect stability at zero levels versus 0.1% in February, while the annual reading of the index The same growth stability of 3.0%, unchanged from the previous reading of the previous month of February.

On the other hand, investors are looking for the US economy to reveal labor market data which may show unemployment stabilizing at 3.8%, unchanged from the previous March reading, amid expectations that the reading of the average hourly earnings index Growth accelerated to 0.3% from 0.1% in March.

This comes in tandem with the Non-Farm Payrolls Index, which may indicate a slowdown in job creation to 181,000 jobs, up from 196,000 jobs in March, amid expectations that the trade balance index will reflect a widening deficit to $ 73.0 Billion compared to $ 72.0 billion in February, and the preliminary reading of the Wholesale Sentiment Index showed growth stability at 0.2%, little changed from February.

Leading to the final reading of the index of the Institute of Supply Services by Markit for the United States, which may reflect the stability of the widening at 52.9 compared to 55.3 in March, before the disclosure of the index of the Institute of Supply Service, which may show a wide to 57.2 compared to 56.1 in March , And we would like to point out, because the provision of services is important in the fact that the service sector in America represents more than two thirds of the GDP there.

Technical Analysis

The pair managed to break the 1.1180 level and closed the daily candlestick below it, reinforcing expectations of the bearishness over the short and short term, and the way ahead towards the next target at 1.1100, noting that breaking this level will push the price towards 1.1000 as a next stop.

SMA 50 continues to support the suggested bearish wave, which requires stability to remain below 1.1250.

The trading range for today is expected between 1.1080 and 1.1240 support.

The general trend for today is bearish.