EUR analysis 17.07.2019

The single currency of the European Union region fluctuated in a narrow upward range during the Asian session against the US dollar on the eve of developments and economic data expected Wednesday by the Eurozone economies and the US economy, the world's largest economy.

At 0539 GMT, the EURUSD rose 0.04% to 1.1215, compared with the opening at 1.1211 after the pair reached a high of 1.1217 and the lowest at 1.1217.

Investors are now eyeing the Euro-zone economy as a whole to reveal inflation data with the release of the annual CPI reading, which could reflect a stable 1.2% growth, And the core annual reading of the index itself may show a stable growth of 1.1% versus 0.8% in May.

On the other hand, investors are currently looking for the US economy to release housing market data with the Housing Starts and Construction Permits reading for June, expected to see building permits slow to 0.1% for 1,300K vs. 0.3% 1,294 thousand in May, while the start-up homes may show a decline to 0.7% for about 1,260 thousand homes compared to 0.9% at 1,269 thousand homes.

This comes before we see the disclosure of the book report Beige, which is important in being issued two weeks before the meeting of the Federal Open Market Committee, which is one of the pillars on which the monetary policy makers of the Federal Reserve decisions and directions to support and stimulate the US economy, knowing that the next meeting The next federal commission will be held on 30-31 of July.

Technical Analysis

The EUR / USD pair is trading around the 1.1200 level, and the pair is facing a trade-off between the technical factors as the price moves below the support of the ascending intraday channel, which is under negative pressure formed by SMA 50, while the price remains above the pivotal support at 1.1180, Positive signals through stochastic.

Therefore, we prefer to remain neutral until we get a clearer signal for the next direction by breaking the resistance 1.1295 or break the support at 1.1180, noting that breaking this support will press the price to provide additional negative trades targeting the 1.1100 areas, Will push the price to resume the positive scenario with the following key targets at 1.1350 and 1.1443.

The trading range for today is expected among the 1.1120 support and the 1.1300 resistance

The expected general trend today: Depends on the levels mentioned in the report