EUR Analysis 26.11.2019

The single currency fluctuated in a narrowly bullish range during the Asian session, bouncing back for the fourth consecutive session since November 5 against the US dollar on the eve of economic developments and data on Tuesday. The economic developments and data expected on Tuesday by the US economy, the largest economy in the world.

At 05:27 am GMT the EURUSD fell 0.01% to 1.1013 levels from opening levels of 1.1012 after hitting a session low of 1.1006 and a high of 1.1016.

US Federal Reserve Governor Jerome Powell delivered a speech titled "Building on Gains from Long Expansion" at the Providence Chamber of Commerce annual meeting in Rhode Island. Down from 0.4% in September.

This comes in conjunction with the release of the Trade Balance of Goods, which may show the widening deficit to $ 71.3 billion versus $ 70.4 billion in September, and before the release of US housing market data with the release of the house price index, which may show accelerated growth to 0.5% vs. The S&P House Price Index showed annual growth accelerated to 2.1% in August from 2.0% in August.

Concerning the release of the Consumer Confidence reading, which may show an expansion to 126.9 vs. 125.9 last October, coinciding with the release of Richmond Industrial Index which may reflect a decline in the expansion to 6 vs. 8 in October, With the release of the New Home Sales, which may show a 1.0% rise to 708K versus a 0.7% decline at 701K in September.

Later in the day, investors were also awaiting Federal Open Market Committee (FOMC) member and Fed Governor Lyle Brainard to review the Federal Reserve's monetary policy framework as well as the tools and communication at the New York Business Economics Awards in New York. For the time being the developments of the trade war between Washington and Beijing.

Technical Analysis

The EURUSD pair provided quiet negative trading yesterday and approached the 1.0995 level, and the negative effect of the double top pattern continues to pressure the price to achieve further expected decline for the coming period, to continue to favor the bearish trend over the intraday and short term, which is the next target at 1.0950.

SMA 50 supports the bearish outlook, recalling the importance of holding below 1.1065 to continue the suggested bearish bias.

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

Expected trend for today: Bearish.