EUR Analysis 16.09.2019

The single currency of the European Union fluctuated in a narrow range tilted to decline during the Asian session to witness a rebound for the second session from its highest since August 27 against the US dollar amid the lack of economic data earlier this week by the euro-zone economies and on the eve of developments and data The US economy is expected to be the largest in the world.

At 05:47 am GMT the EURUSD fell 0.04% to 1.1069 levels from the opening at 1.1075, after the pair reached a session high of 1.1075, while a low of 1.1067.

Investors are currently awaiting the US economy, the world's largest industrialized countries, on the release of the New York manufacturing index, which may show the contraction widened to 4.1 from 4.8 in August. This comes just hours before Tuesday's release of the industrial production index which may show a rise of 0.2% against It slipped 0.2% in July, while the Energy Expenditure Rate reading may reflect accelerating growth to 77.6% vs. 77.5%.

Markets are also looking ahead to the FOMC meeting on Tuesday and Wednesday in Washington, which is expected to cut the federal funds rate by 25 basis points for the second consecutive meeting to between 1.75% and 2.00%. On the expectations of members of the Committee on growth rates, inflation and unemployment in addition to the future of interest rates for the next three years.

Federal Reserve Governor Jerome Powell is due to hold a press conference next Wednesday, half an hour after the FOMC meeting, which has been widely criticized by US President Donald Trump for demanding the Fed. And Powell's governorate cut interest rates "to zero or less."

Technical Analysis

EUR / USD continues to fluctuate around the resistance of the descending channel and hold it below it. Note that SMA 50 meets this resistance to add more strength to it, while Stochastic is floating in overbought areas.

Therefore, we believe that chances are available to trade negatively in the coming sessions, waiting for heading towards 1.0857 as the next major stop, noting that exceeding the current resistance will push the price to test the 1.1180 level before any new attempt to decline.

Expected trading range for today is between 1.0960 support and 1.1120 resistance.

Expected trend for today: Bearish.