EUR Analysis 17.09.2019

The single currency of the European Union (EU) has fluctuated in a narrow, bullish range during the Asian session, bouncing back to its third session in four of its lowest since September 3, when it tested its lowest level since May 15, 2017 against the US dollar. On the eve of economic developments and data expected on Tuesday by the economies of the euro zone and the US economy the largest economy in the world.

At 05:51 AM GMT the EURUSD rose 0.08% to 1.1010 levels from the opening at 1.1001, after the pair reached a session high of 1.1014, while a low of 1.0998.

Markets are looking to reveal a statistically significant ZEW Economic Sentiment reading for Germany and the Eurozone economies as a whole, which may reflect a contraction in deflation in Germany and the region as a whole to 38.0 and 37.4 versus 44.1 and 43.6 respectively in August. European Commission President Jean-Claude Juncker said the current Brexit negotiations with British Prime Minister Boris Johnson are good.

On the other hand, investors are awaiting the US economy, the largest industrial countries in the world for the release of the industrial production index, which may show a growth of 0.2% against a decline of 0.2% in July, while the reading of the energy utilization rate may show that growth accelerated to 77.6% against 77.5%, This is before we see the release of the housing market data with the release of the housing index by the National Association of Home Builders which may reflect a stable at 66 during September.

Markets are also looking to kick off the FOMC meeting later today 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% in conjunction with To reveal the expectations of the members of the Committee on the rates of growth, inflation and unemployment in addition to the future of interest rates for the next three years.

Federal Reserve Governor Jerome Powell will hold a press conference tomorrow, half an hour after the FOMC meeting, which has been widely criticized by US President Donald Trump. Powell cut interest rates "to zero or less."

Technical Analysis

EUR / USD is trading around the 1.1000 level after yesterday's decline, and SMA 50 continues to weigh on the price, while the Stochastic is showing negative signals on the daily time frame.

Therefore, these factors encourage us to continue to favor the bearishness for the upcoming period, which is the next target at 1.0857, noting that stability below 1.1080 represents the first condition for the continuation of the expected decline.

Expected trading range for today is between 1.0910 support and 1.1080 resistance.

Expected trend for today: Bearish.