EUR Analysis 10.09.2019

The single currency of the European Union fluctuated in a narrow range tilted to decline during the Asian session to witness the resumption of rebound from the highest since August 29 last for the third session in four sessions against the US dollar on the eve of developments and economic data expected on Tuesday by euro zone economies The US economy is the largest in the world.

At 05:37 am GMT, EUR / USD fell 0.03% to 1.1045 levels from the opening at 1.1048, after hitting a session low of 1.1040 and a high of 1.1052.

Markets are currently looking ahead to France, the second largest economy in the euro zone, for a reading of industrial production, which may reflect a rise of 0.5% versus a decline of 2.3% in the previous reading for the month of June, before we see the same index reading for Italy, the third largest economy in the region. It may show that the decline shrank to 0.1% from 0.2% in June.

On the other hand, investors are awaiting the US economy for the release of the employment and employment turnover, which may reflect a decline to 7.31 million compared to 7.35 million in June, following hours of US labor market data for August. Last Friday showed the unemployment rate stabilized at 3.7% for the third month in a row in line with expectations.

In the same context, we also followed last weekend's Average Hourly Earnings, which showed growth accelerated to 0.4% compared to the previous July and expectations of 0.3%, while the change in jobs in non-agricultural sectors showed a slowing pace of job creation. The number of jobs added to 130 thousand jobs compared to 159 thousand jobs added in July, contrary to expectations that indicated 163 thousand jobs added.

Technical Analysis

The narrow range continues to dominate the EURUSD trading, which remains within the channel shown, thus, the temporary bullish scenario will remain probable over intraday basis, awaiting the test of 1.1100 before returning to resume the bearish main trend.

Note that a breach of the target will push the price to 1.1180 before any new negative attempt, while a break of 1.1005 will press the price to resume the decline without having to touch the suggested targets.

Expected trading range for today is between 1.0950 support and 1.1110 resistance.

Expected trend for today: Temporarily bullish.