EUR Analysis 02.09.2019

The single currency of the European Union fluctuated in a narrow range upward during the Asian session to witness the rebound to the second session of the lowest since May 15, 2017 against the US dollar on the eve of developments and economic data expected on Monday by the euro zone economies amid tightness Economic data over the weekend and this month by the US economy due to the Labor Day holiday there.

At 04:50 am GMT, the euro against the US dollar rose by 0.04% to 1.0991 levels compared to the opening at 1.0987, after the pair reached its highest level during the trading session at 1.0999, while the lowest level at 1.0984, knowing that the pair The week and September started a bullish price gap after closing last week and month at 1.0982.

Markets are looking to reveal the manufacturing sector data from Spain, the fourth largest economy in the euro zone with the release of the manufacturing PMI which may reflect a contraction in contraction to 48.6 vs. 48.2 in July, before we see the release of the same indicator for Italy third. The region's largest economy may also reflect a contraction in contraction to 48.6 from 48.2 in July.

This comes before we see the final reading of the manufacturing PMI for France, the second largest economy in the euro zone and Germany, the largest economies in the region as well as the economies of the euro area as a whole, which may reflect the stability of the expansion at 51.0 in France against the contraction of 49.7 in July, and the stability of deflation At 43.6 in Germany versus 43.2 in July, deflation also stabilized at 47.0 in the region as a whole versus 46.5.

On the other hand, we followed last Friday ECB members Ewald Nowotny and Spini Lottenschleeger separately expressed their exclusion of the ECB's reactivation of the monetary easing and bond purchase program, while stating that the ECB may modify the existing instruments to some extent and that it may Take into account the reduction of the leader before going to re-adopt the cash facilitation and asset purchase program.

On the other hand, by the end of this week, the week looks forward to the release of the US labor market data before we see on Friday the upcoming speech of Fed Governor Jerome Powell and deliver a speech entitled "Economic Outlook and Monetary Policy" at the event hosted by the Swiss Institute for International Studies in Switzerland, Zurich.

Technical Analysis

The EURUSD closed last week below 1.1000, reinforcing expectations for the bearishness to continue in the intraday and short-term, and the way is open for further declines towards our next major target of 1.0857.

Therefore, we are waiting for more negative trading over the coming sessions supported by SMA 50, keeping in mind that the breach of 1.1040 may push the price to test 1.1100 areas and then 1.1180 before any new attempt to decline.

Expected trading range for today is between 1.0900 support and 1.1050 resistance.

Expected trend for today: Bearish.