EUR Analysis 19.11.2019

The single currency fluctuated in a narrow, bullish range during the Asian session, witnessing its rebound for the fourth consecutive session from the lowest since October 10 against the US dollar on the eve of developments and economic data expected Tuesday by the euro zone economies and the US economy the largest economy In the world.

At 05:12 am GMT the EURUSD rose 0.03% to 1.1075 levels, the pair's highest level during the trading session, compared to the opening levels at 1.1072, while the pair achieved the lowest during the session at 1.1063.

Investors are looking ahead to the Eurozone economies as a whole, revealing the seasonally adjusted Current Account reading, which could reflect a contraction of the surplus to € 22.3 billion from € 26.6 billion in August. Europe needs broad discussions among policy makers on how to stimulate the economy.

European Central Bank member Lin also said that the Brexit scenario is unlikely, and that if this happens, the ECB and the Bank of England have worked together extensively in the past two years, explaining that Brexit is less harmful to the EU's economies than Britain. She has concerns about the repercussions of Brexit on Ireland.

On the other hand, investors are currently awaiting the US economy to release housing market data with the release of both housing starts and building permits and amid expectations that building permits will decline to 0.8% to about 1,381 thousand permits versus 2.7% at 1,387 thousand in September. September, while the start of construction may reflect a rise of 4.9% to about 1,318 thousand homes compared to a decline of 9.4% at 1,256 thousand homes.

The Federal Open Market Committee (FOMC) and New York Federal Reserve Chairman John Williams spoke at the Capital Markets Conference sponsored by the Securities and Financial Markets Industry Association in Washington, DC, hours after US President Donald Trump met with the Federal Reserve Governor. Jerome Powell at the White House in an unplanned meeting.

Earlier this week, US President Trump invited Powell to discuss the state of the domestic economy, particularly the pace of growth and inflation, as well as employment rates. The meeting included US Treasury Secretary Stephen Menushin, and Trump said the meeting was very good. Several topics were discussed including interest rates, negative interest rates and inflation.

President Trump said he also discussed during his meeting with the Federal Reserve Governor and the Treasury Secretary the trade relations with China and the European Union as well as the strength of the US dollar and the impact on the industrial sector of the world's largest industrialized countries, unlike many other issues and comments. Powell on the meeting consistent with his recent testimony before Congress and did not address the expectations of monetary policy.

Technical Analysis

The EURUSD ended yesterday's trading above 1.1065, and tested the support floor formed above that level to start rising again with the opening today, supporting the chances of continuing the bullish bias during the coming sessions, on its way to test the 1.1105 initially.

Thus, a bullish trend is likely for today, and a breach through the mentioned level will push the price to 1.1180 directly, while a break of 1.1065 is a negative factor that will press the price to test 1.0995 areas before determining the fate of its next destination more accurately.

Expected trading range for today is between 1.1000 support and 1.1180 resistance.

Expected trend for today: Bullish.