EUR Analysis 24.10.2019

The euro rose on the European market on Thursday against a basket of global currencies, to maintain gains for the second day in a row against the US dollar, with the European Union to give Britain a new postponement of Brexit, so that it can pass the recent Johnson agreement in the British Parliament, comes ahead of the release of important data The main sectors that make up the European economy during October, in addition to the results of the ECB monetary policy meeting.

The euro rose against the dollar by 0.1% to $ 1.1141, and the opening price of the day at $ 1.1129, and recorded the lowest level at $ 1.1128.

The euro ended yesterday's trading up 0.1% against the dollar, its first gain in three days, with correction from a two-month high of $ 1.1180 halted.

European Council President Donald Tusk said he had recommended to EU leaders that Britain should give Brexit a new postponement, and senior EU diplomats said the delay would likely be three months.

The British parliament this week backed Prime Minister Boris Johnson's separation deal with European leaders, but rejected the government's tight timetable for passing legislation to pass the deal, so the proposed delay could be a last resort for the current confusion within the UK. British.

Later in the day, investors awaited data on key sectors of the European economy, to survey the extent of the economic recovery in the euro area during the fourth quarter, to be released respectively the preliminary reading of the PMI manufacturing and service sectors across Europe during October.

The ECB will conclude its October 24 meeting later, with the European interest rate decision and monetary policy statement due by 11:45 GMT, and Mario Draghi speaking by 12:30 GMT.

Most expectations are that the ECB will leave monetary policy unchanged, after announcing at the previous meeting that it was buying new assets and cutting interest rates, and vowed to take further action if necessary.

Technical Analysis

EUR / USD rebounded after testing the 1.1105 level yesterday, keeping the bullish scenario valid and effective for the coming period, supported by SMA 50, which continues to carry the price from below, waiting for the initial test of 1.1180.

The breach of the target will push the price to 1.1280 as the next positive target, while the expected rise will remain valid provided stability above 1.1105 and 1.1065 levels.

Expected trading range for today is between 1.1060 support and 1.1230 resistance

Expected trend for today: Bullish