EUR analysis 21.05.2019

The single currency of the European Union region fluctuated in a tight range in the Asian session to see its sixth session retreat in seven sessions from its highest since early May against the US dollar after Federal Reserve Governor Jerome Powell spoke in Florida on the eve of economic developments and data. Which is expected on Tuesday by the economies of the euro zone and the US economy, the world's largest economy.

At 05:08 GMT, the EURUSD dropped 0.06% to 1.1159, compared to the opening at 1.1166, after the pair reached a low of 1.1158 and a high of 1.1172.

Investors are currently eyeing the economy of the euro-zone as a whole for the Consumer Confidence reading, which may reflect a stabilization of deflation at a value of 8 unchanged from last April. Otherwise, we followed yesterday the European Commission spokesman Commission President John Claude Juncker will meet US President Donald Trump at the G20 summit in Osaka for trade talks between the two sides.

On the other hand, we have just followed Fed Governor Jerome Powell's speech titled "Risk Assessment of Our Financial System" at the Financial Markets Conference. Markets are currently looking to release US housing data with the Existing Home Sales Index, which may reflect a rise of 2.7 To 5.35 million homes, compared to a 4.9% decline at 5.21 million in March.

This comes before the Federal Open Market Committee's meeting with Federal Reserve Bank President Charles Evans at the Florida Financial Markets Conference on Economy and Monetary Policy before Federal Reserve Chairman Eric Rosengren at the Economic Club in New York.

Technical Analysis

The EUR / USD pair has not seen any strong movement in the past sessions to remain stable below 1.1180, so there is no change in the bearish scenario which is supported by SMA 50, which is based on stability below 1.1250, At 1.1100 and extending to 1.1000.

The trading range for today is expected among the key support at 1.1080 and resistance at 1.1230.

The general trend for today is bearish.