EUR Analysis 04.10.2019

The single currency of the European Union has fluctuated in a narrow and bullish range during the Asian session to witness its rebound for the fourth consecutive session from the lowest since May 12, 2017 against the US dollar amid the lack of economic data by the euro-zone economies and on the eve of developments and economic data Expected on Friday by the US economy, the largest economy in the world, which includes the speech of the Governor of the Federal Reserve and the speech of members of the Federal Open Market Committee.

At 05:11 AM GMT, the EURUSD rose 0.05% to 1.0971 levels from the opening at 1.0965, which is the lowest level for the pair during the session, while the pair achieved the highest during the session at 1.0984.

Investors are awaiting the US economy to release last month's labor market data, which could reflect a steady unemployment rate of 3.7%, little changed from August, while the change in jobs index for non-agricultural sectors may show accelerated job creation. The average earnings per hour may show growth slowed to 0.3% vs. 0.4%.

This comes in conjunction with the release of the Trade Balance Index, which may reflect the widening of the deficit to $ 54.7 billion compared to $ 54.0 billion in July, and with the opening of the Federal Open Market Committee and Chairman of the Federal Reserve Bank of Boston, Eric Rosengren opening remarks of the annual conference hosted by the Bank Federal Reserve in Boston.

Federal Reserve Governor Jerome Powell gave the opening remarks at the Fed listening event hosted by the Federal Reserve Bank of Washington, before FOMC and Fed Governor Lyle Brainard moderated a panel discussion titled "Measuring Maximum Employment." In a changing labor market "and within the realities of a Fed event listens.

Markets are also looking forward to Federal Reserve Chairwoman and Kansas City Federal Reserve Chairman Esther George concluding remarks at the 61st annual meeting of the National Association of Business Economics in Denver, before another panelist and Fed deputy Randall Quarles oversaw a panel discussion on the importance of stability. Prices and lower inflation in today's economy "and that also within the realities of the event the Fed listens.

This comes amid anticipation of any hints about the future of monetary policy by the Federal Reserve in the wake of a series of disappointing economic data from the US economy, which boosted the chances of monetary policy makers at the Federal Reserve to cut interest rates for the third time in a row by 25 basis points during a meeting The FOMC is next with the end of this month.

Technical Analysis

EUR / USD stabilizes around 1.0980 after yesterday's rally, noting that the stochastic is starting to decline from overbought areas, forming a negative catalyst that will await the pair to resume the bearish main trend, which targets 1.0857 as the next major stop.

Stability below 1.1030 is important for the continuation of the expected decline, as a breach will push the price to start a bullish corrective wave over intraday basis.

We note the importance of monitoring trading today, as markets await the US unemployment and payrolls data, which may cause strong and mixed trading in major currency pairs.

Expected trading range for today is between 1.0840 support and 1.1050 resistance.

Expected trend for today: Overall bearish.