EUR Analysis 01.11.2019

The euro rose on Friday in the European market against a basket of global currencies, extending gains for the fifth consecutive day against the US dollar, with the continuation of the first monthly gain in the last four months, and the biggest monthly gain in about 21 months, comes on the eve of developments and economic data expected today Friday by the largest US economy in the world.

The euro rose against the dollar by 0.2% to $ 1.1174, and the opening price of the day at $ 1.1151, and recorded the lowest level at $ 1.1130.

Investors are awaiting the release of last month's labor market data which may reflect a rise in the unemployment rate to 3.6% vs. 3.5% in September, while the Non-Farm Payrolls reading may show a slower pace of job creation to 90k vs. 136k jobs, and the hourly average income may show a 0.3% growth versus steady zero levels.

This comes before we see the final reading of the US Manufacturing PMI by Markit, which may reflect the stability of the expansion at 51.5, little changed from the initial reading of last month versus 51.1 in September, and before we see the largest The ISM manufacturing index is expected to show a contraction shrinking to 49.0 vs. 47.8 in September.

In the same context, markets are also looking ahead to the US economy for the ISM Manufacturing Price Index reading to 50.1 versus a contraction of 49.7 in September, coinciding with the release of the Construction Spending which reflects accelerated growth to 0.2. % Compared to 0.1% last August.

This comes before we see FOMC and Fed Governor Richard Clarda delivering a speech titled "The United States, Japan and the Global Economy at the Japan Society's Food Banquet in New York," in conjunction with another Fed Governor Randall Quarles's speech on Friedrich. Hayek and the price system at the event hosted by Yale University in Connecticut.

FOMC Chairman John Williams will co-chair a question and answer session at Rutgers University in New Jersey, following the decision of Federal Reserve policy makers at the FOMC meeting October 29-30. Cut interest rates for the third consecutive meeting by 25 basis points to between 1.50% and 1.75%.

Technical Analysis

EUR / USD is returning to the upside after yesterday's decline, approaching the 1.1180 level once again, and getting a positive positive support from SMA 50, waiting to contribute to push the price to breach the mentioned level and confirm the extension of the ascending wave towards 1.1280 as the next target.

Therefore, the bullish trend will remain valid and likely for the coming period, provided that it holds above 1.1105 levels and most important above 1.1065.

Expected trading range for today is between 1.1100 support and 1.1260 resistance.

Expected trend for today: Bullish.