EUR Analysis 11.10.2019

The single currency of the European Union fluctuated in a narrow and bullish range during the Asian session to witness its seventh rebound in nine sessions from the lowest since May 12, 2017 against the US dollar on the eve of developments and economic data expected on Friday by Germany, the largest economies The euro zone and the US economy are the largest in the world.

At 05:27 AM GMT, the EURUSD rose 0.11% to 1.1017 levels from the opening at 1.1005, the pair's lowest level during the session, while the pair reached its highest at 1.1020.

Germany is awaiting the release of the final consumer price index, which may reflect steady stability at zero levels unchanged from the initial reading for the month of September and against a contraction of 0.2% last August, coinciding with the meetings of the finance ministers of the euro zone Ecofin In Brussels they discuss several financial issues such as the mechanisms of euro support and government funding.

On the other hand, investors are waiting for the US economy to release the import price index, which may show a decline of 0.5% against a rise of 0.2% in August, while the annual reading of the same indicator may show a decline to 2.0% vs. 1.8%, before we see the disclosure The University of Michigan's preliminary reading of consumer sentiment may reflect a widening of 90.4 vs. 89.9 last September.

The Federal Open Market Committee (FOMC) and Boston Fed Chairman Eric Rosengren talked about monetary policy and interest rates at the US Economic Challenges in Madison, hours after Fed Governor Jerome Powell said the US economy was doing well. He faces some risks and the Fed's strategy and tools are still very effective.

Technical Analysis

EURUSD ended yesterday's trading above the descending channel resistance, which stops the negative scenario suggested in our recent reports and leads the price to achieve further gains expected in the coming sessions, en route mainly to 1.1180.

Therefore, the bullish trend is likely for today supported by a move above SMA 50, taking into consideration that breaching 1.1000 levels and then 1.0975 will bring the price back to the downside path and stop the current rally.

Expected trading range for today is between 1.0940 support and 1.1110 resistance

Expected trend for today: Bullish.