EUR Analysis 21.10.2019

The single currency of the European Union fluctuated in a narrow, bullish range during the Asian session to witness the rebound of the twelfth session in the fifteenth lowest since May 12, 2017 against the US dollar on the eve of developments and economic data expected on Monday by the largest economies Eurozone Germany and amid tight economic data earlier this week by the US economy.

At 05:01 am GMT, the euro against the US dollar rose 0.11% to 1.1158 levels compared to the opening at 1.1146, after the pair reached its highest level during the session at 1.1165, while the pair achieved the lowest at 1.1137, knowing that The pair started the session on a bearish price gap after it ended last week's trading at 1.1167.

Markets are now looking to Germany to reveal the PPI reading, which is a preliminary indicator of inflationary pressures that may reflect a contraction in contraction to 0.1% vs. 0.5% in August, while the annual reading of the index itself may show a contraction of 0.2% vs. 0.3% growth. In the annual reading prior to August, comes before we see the release of the monthly report of the Bundesbank

On the other hand, over the weekend we followed the British parliament's vote to postpone the vote on the agreement reached by the British Prime Minister Boris Johnson with the European Union for the orderly exit of the United Kingdom and the postponement of the vote to a "meaningful vote" on the exit deal, which forced the The British prime minister is demanding that Brussels extend the pre-set exit deadline by the end of this month.

EU leaders do not necessarily have to accept an extension of the Brexit deadline again, while the chances of the kingdom leaving the EU by October 31 without a deal have diminished, with growing chances of delaying Brexit. Beyond the end of this month, or the British parliament's ratification of the British government's agreement with Brussels for an orderly exit later this week.

Technical Analysis

EUR / USD stabilizes around 1.1160 after reaching a few pips from our awaited target of 1.1180, and some bearish bias may be seen with stochastic negativity, while SMA 50 continues to support the price from below.

Therefore, we will maintain our bullish expectations for the coming period, and the price needs to breach the 1.1180 level to confirm the extension of the bullish wave towards 1.1280, taking into consideration that the continuation of the suggested bullish trend requires stability above 1.1060.

Expected trading range for today is between 1.1080 support and 1.1260 resistance.

Expected trend for today: Bullish.