EUR Analysis 30.10.2019

The single currency of the European Union fluctuated in a narrow range tilted to decline during the Asian session to witness the bounce of the fifth session in eight sessions from its highest since August 14 against the US dollar on the eve of developments and economic data expected on Wednesday by the economies of the euro zone and the US economy The decisions and directions of the Federal Open Market Committee and the upcoming press conference of Fed Governor Jerome Powell.

At 05:23 am GMT, EUR / USD fell 0.02% to 1.1110 levels compared to the opening at 1.1112, after the pair reached its lowest level during the session at 1.1106, while the pair achieved the highest at 1.1115.

The French economy, the region's second-largest, is currently looking to reveal its third-quarter growth data with the preliminary GDP figure, which may reflect a slower pace of growth to 0.2% vs. 0.3% in the second quarter. The pace of growth to 1.3% versus 1.4% in the annual reading for the second quarter.

This comes before the release of the preliminary CPI reading by Germany, the largest economy in the euro zone, which may reflect the stability of zero levels remained unchanged from September, and before the release of the annual reading of the same indicator for Spain, the fourth largest economy of the region, which may clarify Growth stabilized at 0.1%, up to Germany's Unemployment Change which may reflect a rise to 2K versus a 10K decline in September.

On the other hand, investors are awaiting the US economy to release preliminary data for the labor market with the release of the indicator of change in private sector jobs, which may reflect the slowing pace of job creation to 125 thousand jobs added to 135 thousand jobs added in September, hours before The monthly report on non-farm payrolls and unemployment rates, as well as the hourly rate of income for the month of October.

The market is then looking to reveal the preliminary GDP figure for the US for the third quarter, which may show a slower pace of growth for the world's largest economy to 1.6% versus 2.0% in the second quarter, and the preliminary GDP reading measured in prices for the quarter. The quarterly pace of growth slowed to 1.8% from 2.4% in the second quarter.

This comes in conjunction with the FOMC meeting in Washington, which is expected to cut interest rates on federal funds by 25 basis points for the third meeting in a row to between 1.50% and 1.75%, and before we witness the upcoming press conference of the Federal Reserve Governor Jerome Powell, following US President Donald Trump's demand for more stimulus and interest rate cuts.

Technical Analysis

The EURUSD pair provided positive trading yesterday evening and closed the daily candle above 1.1105, reinforcing expectations for the continuation of the bullish trend over the intraday basis, aiming to visit 1.1180 as a first stop, waiting for further rallies in the coming sessions supported by SMA 50.

Conversely, failing to hold above 1.1105 and falling to break the 1.1065 level will stop the positive scenario and press the price for further bearish correction in the coming period.

Expected trading range for today is between 1.1020 support and 1.1200 resistance.

Expected trend for today: Bullish.