EUR Analysis 21.10.2019

The single currency fluctuated in a narrow, bullish range during the Asian session to see its fifth session rebound in six of its lowest since October 10 against the US dollar on the eve of economic developments and data expected on Thursday by euro zone economies and the US economy.

At 05:37 am GMT, the EURUSD rose 0.04% to 1.1077 levels from the opening levels of 1.1073, the pair's lowest level during the session, while the pair reached its highest at 1.1079.

Markets are looking to reveal the accounts of the ECB's monetary policy meeting held on 24 October, during which the ECB monetary policy makers kept interest rates at zero and marginal lending rates at 0.25% while maintaining the deposit rate. Negative -0.50%, following the deepening of its recent reduction with the announcement of the reactivation of the quantitative easing program.

This comes before we see the release of the Consumer Confidence Index for the region's economies as a whole, which may reflect a contraction in contraction to 7 versus 8 in October. Otherwise, we followed yesterday Charles Michel, president of the European Council chosen in July to succeed the current president. Donald Tusk, whose term expires next month, wants to maintain close ties between the EU and Britain after the latter leaves the EU.

On the other hand, investors are awaiting the US economy for the release of the index of claims for the last week on the 16th of this month, which may reflect a decline of 10 thousand applications to 215 thousand applications compared to 225 thousand applications in the previous weekly reading, while reading may show Investors for the week ending 9th of this month stabilized at 1,683 thousand applications.

This comes in conjunction with the disclosure by the largest industrial country in the world for the reading of the Philadelphia industrial index, which may reflect an expansion to 7.0 from 5.6 in October, before we see the release of housing market data with the release of the existing home sales index. That could show a rise of 2.1% to 5.49 million, compared to a decline of 2.2% at 5.2.2 million in September.

Markets from the world's largest economy are also looking to reveal the leading indicators that may show a 0.1% decline in October, following hours of the FOMC minutes from October 29-30. October, in which interest rates were cut for the third time in a row by 25 basis points to between 1.50% and 1.75%.

Technical Analysis

The EURUSD has held steady above 1.1065, and starts to provide positive trades in an attempt to move away from the mentioned level, where it receives a positive positive support from the EMA50, to keep the upside trend valid and active during the coming sessions, waiting to target 1.1105 then 1.1180 which represents Our main objectives are following.

Keep in mind that the breach of 1.1065 will put the price under the downside corrective pressure again, heading towards testing 1.0995 areas and then 1.0950 as the main negative targets.

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

Expected trend for today: Bullish.