EUR Analysis 18.10.2019

The single currency of the European Union fluctuated in a narrow range tilted to decline during the Asian session to witness the rebound for the second session from its highest since August 26 against the US dollar on the eve of developments and economic data expected on Friday by the economies of the euro area as a whole and the US economy The EU Summit and the FOMC members talk.

At 05:11 am GMT, EUR / USD fell 0.02% to 1.1123 levels from the opening at 1.1125, after the pair reached a session high of 1.1131, while the pair bottomed at 1.1121.

Investors are looking ahead to the Eurozone economies as a whole, revealing the seasonally adjusted reading of the Current Account, which could reflect a widening surplus to € 21.3 billion from € 20.5 billion last July. It is possible that the Brexit agreement will take effect in early November.

Council President Tusk also noted that he is awaiting the outcome of the vote of both the British and European Parliament on the agreement reached on the issue of Brexit from the European Union, pointing out that the main change that allowed an agreement between the parties, is the UK's acceptance of customs checkpoints In Northern Ireland, adding that the agreement ensures the integrity of the single market of the agreement.

On the other hand, investors are currently awaiting the release of leading indicators which may show a 0.1% growth against the zero level in August. This comes in conjunction with FOMC and Kansas City Fed Chairman Esther. George at the Energy and Economics Conference hosted by the Denver Branch of the Kansas City Fed.

The Federal Open Market Committee (FOMC) and Deputy Governor of the Federal Reserve Richard Clarda talked about the economic expectations and monetary policy at the Chartered Income Management Conference on Financial Stability. Because these meetings are open to the press.

Technical Analysis

EURUSD stabilized above the 1.1100 barrier after yesterday's bullish rally, and the path is open to our key target at 1.1180, noting that a break above this level will extend the bullish wave to 1.1280 as the next major stop.

Therefore, the bullish bias remains likely in the coming sessions unless 1.1040 is breached and stability below it.

Expected trading range for today is between 1.1040 support and 1.1220 resistance.

Expected trend for today: Bullish.