EUR Analysis 17.10.2019

The single currency of the European Union fluctuated in a narrow, bullish range during the Asian session to witness the rebound of the tenth session in thirteen sessions from the lowest since May 12, 2017 against the US dollar on the eve of developments and economic data expected on Thursday by Italy The third largest economy in the eurozone and the launch of the EU summit in Brussels in addition to the developments and economic data expected by the US economy, which wishes to speak members of the Federal Open Market Committee.

At 04:46 am GMT the EURUSD rose 0.04% to 1.1076 levels from the opening at 1.1072, after the pair reached a session high of 1.1085, while the pair reached its lowest at 1.1071.

Markets are looking ahead to Italy's trade balance reading, which could show the surplus narrowed to 6.21 billion euros from 7.63 billion euros in August, hours after the Italian government approved yesterday's budget plan for next year, which includes a project to cancel the increase. In the VAT and inject new funds for public investments, the draft budget is scheduled to be sent to the European Commission later.

Yesterday, European Council President Donald Tusk said that the fate of Brexit will be determined in the next few hours. The comments came hours before the start of the EU summit today and tomorrow in Brussels amid growing hopes in recent times. To reach an agreement on an orderly Brexit from the European Union.

On the other hand, investors are awaiting the US economy to reveal the housing market data with the release of the Housing Starts and Building Permits for September and expectations that building permits will fall 5.8% to 1.34 million versus a rise of 7.7% at 1.43. Housing starts in August may also show a decline of 3.2% to 1.32 million from a decline of 12.3% at 1.36 million.

This also comes in conjunction with the release of the index of claims for the last week on the 12th of this month, which may reflect an increase of 2,000 applications to 212 thousand applications compared to 210 thousand applications in the previous weekly reading, while the reading of the claims applications index may show investors for the week that ended on the fifth of This month, a decrease of 14 thousand applications to 1,670 thousand applications compared to 1,684 thousand applications.

Markets from the world's largest industrialized nations are also eyeing the release of the Philly Fed Manufacturing Index, which may reflect a contraction in the expansion to 7.3 from 12.0 in September, before we see the release of the industrial production index which may show a 0.1% decline versus a rise. 0.6% in August, while the Energy Exploitation Rate reading may show a slowdown in growth to 77.7% versus 77.9% in August.

FOMC Fed Governor Michelle Bowman and Chicago Fed President Charles Evans speak at the Federal Reserve Bank of Chicago listening event, before we see another Federal Reserve Chairman, the Federal Reserve Bank of New York. John Williams at the Managed Funds Expectations Conference in New York.

Technical Analysis

EUR / USD stabilizes around 1.1080 after yesterday's rally, keeping the bullish scenario valid and active in the coming sessions, and the price gets positive support from SMA 50, with our main target at 1.1180.

Stability above 1.0980 is important for the continuation of the expected bullish bias, as a breach will pressure the price to return to the descending channel shown.

Expected trading range for today is between 1.1000 support and 1.1180 resistance

Expected trend for today: Bullish