EUR Analysis 14.10.2019

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 the highest since September 20 last against the US dollar on the eve of developments and economic data expected on Monday by euro-zone economies and amid the lack of economic data from The US economy was accepted earlier this week due to the Columbus Day holiday in the United States.

At 05:40 am GMT, the euro fell against the US dollar by 0.13% to 1.1030 levels compared to the opening at 1.1044, after the pair reached its lowest level during the session at 1.1024, while achieving the highest at 1.1051, knowing that the pair The session started at a bullish gap after it closed last week at 1.1042 levels.

Markets are looking ahead to the euro zone's largest economy, Germany's wholesale inventory reading, which may reflect a contraction in the decline to 0.2% from 0.8% in August, before the Eurozone economies as a whole witness the release of the seasonally adjusted industrial production index. A 0.3% rise versus a 0.4% decline in July could be seen, and the annualized reading of the same index may show a decline to 2.5% versus 2.0%.

Technical Analysis

EURUSD is showing some slight bearish bias on its way to retest the breached resistance of the bearish channel shown in the picture, which is now turning into important support at 1.0990, and we note that SMA 50 meets this support to add more strength to it, to keep positive expectations for the period. Next, mainly waiting for the 1.1180 level.

Therefore, the bullish scenario remains likely provided that the price holds above 1.0990.

Expected trading range for today is between 1.0950 support and 1.1120 resistance.

Expected trend for today: Bullish.