EUR analysis 1.08.2019

The single currency of the European Union region fell during the Asian session to its lowest level since May 16, 2017 against the US dollar on the eve of developments and economic data expected Thursday by eurozone economies and the US economy, the world's largest economy. / July for losses that stopped in June for the first time in five months.

At 05:02 GMT, the EURUSD fell 0.21% to 1.1053 compared to the opening at 1.1076, after hitting a two-year low of 1.1034, while reaching a high of 1.1082.

The markets are looking to release industrial data from Spain, the fourth-largest economy in the euro area, as the Industrial PMI is released, which may reflect contraction of the contraction to 48.1 from 47.9 in June before seeing the same indicator for Italy's third largest The region's economies, which may reflect the contraction of the contraction to 48.0 versus 48.4 in June.

This comes before we see the final reading of the PMI for France, the second largest economy of the euro zone and Germany, the largest economy in the region as well as the economies of the euro zone as a whole, which may reflect the stability of the expansion at 50.0 in France compared to 51.9 in June, 43.1 in Germany versus 45.0 in June, and the contraction of 46.4 in the region as a whole against 47.6.

On the other hand, investors are currently looking for the US economy to release the Jobless Claims reading for the week ending July 27, which could reflect a 6K increase to 212K before we see the final reading of the Industrial PMI by Marquette From the US, which may reflect the stability of the widening at 50.0, unchanged from the previous reading of the previous month and against 50.6 in June.

Leading to the disclosure by the largest industrialized country of the index of the Industrial Supply Institute index, which may show a widening to 52.0 compared to 51.7 in June, while the same index may indicate the price index contraction contraction to 49.1 compared to 47.9, in conjunction with The construction spending index, which reflects a rise of 0.5% versus 0.8%.

This came hours after the Federal Open Market Committee decided to cut the federal funds rate by 25 basis points for the first time in more than a decade, which was expected in the markets, Federal Reserve Governor Jerome Powell during his press conference after the expiration The fact that the decision was made in view of "global developments" and "inflation" is the subject of the meeting of the Federal Commission.

In the same context, Federal Reserve Governor Paul said that the committee's decision at the July 30-31 meeting to cut interest rates to between 2.00% and 2.25% "was not the beginning of a long series of interest rate cuts." To global risk insurance and that it is not necessarily one-time only, reflecting that the course of monetary policy in the future will depend on the impact of global economic data on the performance of the economy.

Technical Analysis

EURUSD managed to confirm the breach of 1.1100 yesterday, and starts further bearish towards the next target of 1.1000, reinforcing expectations for a continuation of the bearish trend in the coming period, noting that exceeding this level will push the price to visit 1.0857 as the next major station .

Therefore, we are waiting for further downside over intraday and short term unless the 1.1180 level is breached and stability above it

The trading range for today is expected among the support at 1.0950 and the resistance at 1.1100

The general trend for today is bearish.