EUR Analysis 22.11.2019

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

At 05:27 AM GMT, the EURUSD rose 0.05% to 1.1065 levels from the opening levels of 1.1059 after hitting a session high of 1.1066 and a low of 1.1056.

Markets are looking for Germany, the euro zone's largest economy, to reveal the final Q3 GDP reading, which could reflect a stable growth of 0.1%, little changed from the previous initial reading and a contraction of 0.1% in the second quarter. Growth at 0.5%, and the final seasonally adjusted annual reading of the index may show a stable growth of 1.0%.

This comes before we see the French economy, the second largest economy of the euro area, Germany's largest economy of the region and the economies of the region as a whole the preliminary reading of the Markit index of industrial purchasing managers and services this month, which may reflect the expansion of the service sector and industrial in France, and shrinking service sector and shrinking industrial sector In Germany and the economies of the region as a whole.

Markets are also eyeing the speech of ECB Governor Christine Lagarde at the European Banking Conference and German Central Bank President Jens Weidmann at the same conference in Frankfurt, hours after the release of the minutes of the ECB meeting on 24 October. Interest rates were kept at zero levels with a marginal lending rate of 0.25% and a deposit rate of -0.50%.

On the other hand, investors are awaiting the release of the preliminary reading of the manufacturing and services PMI from the US, amid expectations that the initial reading of the industrial sector will expand to 51.5 vs. 51.3 in the previous reading for October, as may show the preliminary reading The Services PMI widened to 51.2 from 50.6 in October.

The final reading of the University of Michigan's consumer confidence index, which may show an expansion to 95.8 compared to 95.7 in the previous initial reading and 95.5 in October, comes hours after the release of last Wednesday's minutes of the FOMC meeting held on 29-30 October, when interest rates were cut for the third time in a row by 25 basis points to between 1.50% and 1.75%.

Technical Analysis

EUR / USD ended yesterday's trading below 1.1065, putting the price under negative pressure that may push the trades back to the downside correctional path, where the next targets are located at 1.0995 and then 1.0950, but on the other hand, we notice that SMA 50 formed a strong support to protect Stochastic is providing clear positive signs that may lead the price to recover.

Therefore, this inconsistency between the technical factors makes us prefer to remain neutral until the price confirms its position towards 1.1065, noting that stability above it will re-activate the bullish trend scenario, whose targets start with a breach of 1.1105 to open the way towards 1.1180 as the next major stop.

Expected trading range for today is between 1.1000 support and 1.1150 resistance.

Expected trend for today: Neutral.