EUR Analysis 05.11.2019

The single currency fluctuated in a narrow range against the dollar during the Asian session to witness a rebound for the fourth session from its highest since October 21, when it tested the highest since August 14 against the dollar on the eve of developments and economic data expected on Tuesday before Eurozone economies are the largest in the world.

At 04:58 AM GMT, EUR / USD fell 0.04% to 1.1123 compared to the opening at 1.1128, after the pair reached its lowest level since October 30 at 1.1113, while the pair reached its highest level during trading The session was at 1.1131.

The euro zone's second-largest economy is looking ahead to last month's treasury budget, before Spain, the region's fourth-largest economy, saw the release of the Unemployment Change, which could reflect an acceleration in growth to 62.0K versus 13.9K in September. To reveal inflation data for the economies of the region as a whole, the Producer Price Index (PPI) is a preliminary indicator of inflationary pressures that may show 0.1% growth versus a 0.5% contraction in August.

On the other hand, investors are awaiting the release of the US Trade Balance, which may reflect a narrowing of the deficit to $ 52.9 billion compared to $ 54.9 billion in August, ahead of the final reading of the US Markit Service Provider's Markit Index. Which may reflect a steady expansion of 51.0, little changed from the initial reading for October and versus 50.9 in September.

As for the ISM reading, which may show a widening of 53.5 vs. 52.6 in September, we should note that the service supply is important because the US service sector accounts for more than two-thirds of GDP. With the release of a statistical reading of jobs and turnover, which may reflect a rise to 7.06 million compared to 7.05 million in August.

Technical Analysis

EUR / USD continues to decline to reach the first pivotal support 1.1105, which warrants attention from the upcoming trading, as the continuation of negative pressure and breaking this level followed by a break of 1.1065 will push the price for a further bearish correction targeting 1.0995 areas initially.

So far, the bullish scenario remains valid unless the support levels mentioned above are broken, supported by oversold signs appearing through Stochastic, with the main targets expected starting at 1.1180 and extending to 1.1280 after breaching the previous level.

Expected trading range for today is between 1.1065 support and 1.1220 resistance.

Expected trend for today: Bullish.