EUR Analysis 07.10.2019

The single currency of the European Union fluctuated in a narrow, bullish range during the Asian session to witness the bounce for the fifth consecutive session from the lowest since May 12, 2017 against the US dollar on the eve of developments and economic data expected on Monday by the euro zone economies and amid This week's economic data was tightened by the world's largest economy.

At 05:03 AM GMT the EURUSD rose 0.02% to 1.0981 levels compared to the opening at 1.0979 after the pair reached its highest level during the session at 1.0990, while the lowest level at 1.0970.

Markets from the euro zone's largest economy are looking to reveal the factory orders index, which may show a decline to 0.4% from 2.7% in July, and the seasonally adjusted annual reading of the same index may show a decline to 6.6% from 5.6% Before we see the release of the Sentix consumer confidence index for the euro area as a whole, which shows deflation widened to 12.9 from 11.1 in September.

On the other hand, investors are looking forward to brief remarks by Federal Reserve Governor Jerome Powell at a movie premiere in Salt Lake City. And his participation on Wednesday in the Federal Reserve's listening panel discussion in Kansas City.

This comes ahead of the release on Wednesday of the minutes of the FOMC meeting held on 17-18 September, in which it was approved to cut the federal funds rate for the second time in a row by 25 basis points to between 1.75% and 2.00 This was in line with expectations, with the Commission's expectations for growth, inflation and unemployment in addition to the future of interest rates for the next three years.

Fed Governor Powell, at the end of last week's opening remarks at a Fed event in Washington, listened to the fact that the US economy is good so far and that the Fed's task is to keep the economy strong for as long as possible. Approaching the target at two percent.

Powell also said Friday that the US economy faces long-term challenges as low interest rates make it harder to cut interest rates on federal funds in a recession, adding that the Fed is now looking at how efficient monetary policy tools are currently available. This year there are two meetings of the Federal Open Market Committee and they will discuss the state of the economy.

Technical analysis

The EURUSD stabilized around 1.0980 and keeps the price flat within the descending channel shown above, keeping the overall bearish scenario valid for now, awaiting a visit to 1.0840 as the next major stop.

Keep in mind that the breach of 1.1030 will stop the suggested decline and lead the price to start recovery attempts over intraday basis.

Expected trading range for today is between 1.0870 support and 1.1050 resistance.

Expected trend for today: Overall bearish.