EUR Analysis 06.11.2019

The single currency fluctuated in a narrow range against the dollar during the Asian session to see its bounce for the fifth session from its highest since October 21, when it tested its highest since August 14 against the dollar on the eve of developments and economic data expected on Wednesday before Eurozone economies and the US economy which include FOMC members speech.

At 05:06 AM GMT, EUR / USD fell 0.04% to 1.1071 levels from the opening at 1.1075, after the pair reached a session low of 1.1067, while the pair reached the highest at 1.1080.

Markets are looking for Germany, the euro zone's largest economy, to release factory orders which may show a 0.1% rise versus a 0.6% decline in August, revealing the services PMI for Spain, the region's fourth-largest economy, which may show a widening contraction to 52.8 from 53.3. In September, the release of the same index reading for Italy, the region's third largest economy, may also reflect a widening contraction to 51.0 versus 51.4.

Investors are also waiting for France, the second largest economy in the euro zone to reveal the final reading of the services PMI, which may show the stability of the expansion at 52.9 unchanged from the initial reading of last month, compared to 51.1 in September, before the final reading of the same indicator for Germany It may also show the stability of the amplitude at 51.2, little changed from the previous initial reading, versus 51.4.

The final reading of the Eurozone Services PMI which may show a steady expansion at 51.8 remains unchanged from the previous initial reading, and against 51.6 in September, before we also see the economies of the region as a whole the retail sales index which may show Growth slowed to 0.1% vs. 0.3% in August, while the annual reading of the same index may reflect acceleration to 2.4% vs. 2.1%.

On the other hand, investors are looking forward to the outcome of the Federal Open Market Committee and Charles Evans, chairman of the Federal Reserve Bank of Chicago, at the Council on Foreign Relations in New York. 2.2% vs. 2.6% in the second quarter.

Markets are also eyeing the US economy to reveal the preliminary reading of non-agricultural sector productivity, which may also show a slower pace of growth to 1.0% vs. 2.3% in the second quarter, up to FOMC member and New York Federal Reserve Chairman John Williams during his participation. In a moderate discussion about the future of the workforce at the Wall Street Journal event in New York.

Technical Analysis

EUR / USD held steady near 1.1065 after yesterday's strong decline, and since the price is above this level, our bullish outlook will remain valid so far, supported by positive stochastic, waiting for a breach of 1.1105 to consolidate the chances of heading towards 1.1180 as a first positive stop. .

On the other hand, we should note that breaching 1.1065 and holding below it will stop the expected rally and press the price to achieve further declines, where the main targets reach 1.0995 then 1.0950.

Expected trading range for today is between 1.1000 support and 1.1170 resistance.

Expected trend for today: Bullish.