EUR Analysis 12.11.2019

The single currency fluctuated in a narrow range against the US dollar during the Asian session to witness the bounce for the sixth session in nine sessions from the highest since October 21, when it tested the highest since August 14 against the US dollar on the eve of developments and economic data expected On Tuesday by the Eurozone economies amidst tight economic data earlier this week by the US economy.

At 05:33 am GMT the EURUSD fell 0.01% to 1.1032 levels from the opening at 1.1033, after the pair reached a session low of 1.1026, while the pair reached its highest at 1.1038.

Markets are looking to reveal a ZEW economic sentiment reading for both Germany and the Eurozone economies as a whole, which may reflect a contraction in deflation in Germany and the region as a whole to 13.2 and 11.5 versus 22.8 and 23.5 respectively in October. Yesterday the European Commission lowered its forecast for the pace of growth of the German economy and the economies of the euro area as a whole this year and next year.

On the other hand, investors are currently awaiting the outcome of the US President's speech at the Economic Club in New York, before witnessing the speech of the Deputy Governor of the Federal Reserve and Federal Open Market Committee Member Richard Clarda speech entitled "Monetary Policy, Price Stability and Bond Returns" at a conference sponsored by The Bank for International Settlements and the Federal Reserve as well as the Swiss National Bank in Switzerland.

This comes just hours before the start of the semi-annual testimony of the Federal Reserve Governor Jerome Powell before the US Congress in Washington, where he is expected to give tomorrow the first half of his semi-annual testimony on policy before the Financial Services Committee in the House of Representatives, before Powell will deliver after Tomorrow, the second half of his testimony before the Senate Banking Committee.

Technical Analysis

The EURUSD pair offered tight sideways trading yesterday, showing some slight bullish bias now, but still below 1.1065, to keep the negative effect of the double top pattern valid, supported by the negative pressure of SMA 50, and the negative signal from During stochastic.

Therefore, these factors encourage us to continue to favor the bearishness over the coming sessions, targeting mainly 1.0995 then 1.0950, while achieving it requires stability below 1.1065 and 1.1105 levels.

Expected trading range for today is between 1.0950 support and 1.1100 resistance

Expected trend for today: Bearish