EUR Analysis 13.11.2019

The single currency fluctuated in a narrow, bullish range during the Asian session to witness its rebound for the second session since October 15 against the US dollar on the eve of developments and economic data expected on Wednesday by the euro zone and the US economy, which includes the testimony of Bank Governor Federal Reserve Jerome Powell before Congress in Washington.

At 05:33 am GMT, the EUR / USD rose 0.06% to 1.1016, the pair's highest level during the session, compared to the opening at 1.1009, while the pair reached its lowest level at 1.1007.

Germany is awaiting the release of the final CPI reading, which could reflect a stable growth of 0.1%, little changed from the prior initial reading for October and steady travel levels in September, before we see the economies of the region. The euro as a whole revealed the seasonally adjusted industrial production index which may show a 0.2% decline versus a 0.4% rise in August.

On the other hand, investors are awaiting the US economy to release inflation data with the release of the CPI reading which may reflect the acceleration of growth to 0.3% versus the steady zero in September, while the core reading of the same indicator may show growth accelerated to 0.2% vs. 0.1 The annualized reading of the index may show growth stabilizing at 1.7%, while the core annual reading of the index may reflect the stability of growth at 2.4%.

This comes before we see 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 the first half of his semi-annual testimony on policy to the Financial Services Committee in the House of Representatives, before we witness the US Treasury disclosure On the reading of the federal budget for the month of October.

Technical Analysis

EUR / USD approached the 1.0995 level yesterday, and is showing some slight bullish bias now affected by the positive Stochastic, and may test 1.1030 before returning to the downside again.

In general, we continue to favor the bearishness for the coming period unless breaching 1.1065 and holding above it, supported by SMA 50, noting that our next target is at 1.0950.

Expected trading range for today is between 1.0930 support and 1.1080 resistance

Expected trend for today: Bearish