EUR Analysis 27.11.2019

The single currency fluctuated in a narrow range against the US dollar on the eve of developments and economic data expected Wednesday by the largest economies of the euro zone Germany and the US economy The largest economy in the world.

At 05:29 AM GMT the EURUSD fell 0.08% to 1.1012 levels from the opening levels of 1.1021 after hitting a session low of 1.1011 and a high of 1.1025.

Markets are looking ahead to Germany's reading of the import price index, which may reflect a 0.2% decline versus a 0.6% rise in September. Otherwise, we continued on Tuesday the European Commission announced an investigation into changes made by Chinese companies on steel. Corrosion by changing paint or increasing carbon content in order to avoid the European customs duties imposed on it up to 27.9%.

On the other hand, investors are currently awaiting the US economy to reveal the second reading of GDP, which may reflect the expansion of the largest economy in the world 1.9% in the third quarter, little changed from the previous initial reading, as the second reading of GDP measured in prices may show stability Growth at 1.7% was also unchanged from the previous quarter's preliminary reading.

This comes in conjunction with the release of the Durable Goods Orders reading, which accounts for about half of consumer spending, which accounts for more than two-thirds of US GDP, which may reflect a contraction in the decline to 0.5% from 1.2% in September, while the core reading may appear. The index is up 0.2% vs. 0.4% in September.

This is also in conjunction with the release of the index of claims for the last week on the 23rd of this month, which may reflect a decrease of 4 thousand applications to 223 thousand applications compared to 227 thousand applications in the previous weekly reading, as may read the index of claims applications for investors for the past week on 16 This month, a decline of 5 thousand applications to 1,690 thousand applications against 1,695 thousand applications.

The data released by the Chicago Purchasing Managers' Index (PMI), which may reflect a contraction in the contraction to 47.2 from 43.2 in October, before the release of the US housing market data with the release of the reading. Existing home sales may show slower growth to 0.2% versus 1.5% in September.

This comes in conjunction with the release of personal spending and income data which may reflect the acceleration of personal spending growth to 0.3% vs. 0.2% in September, and the stabilization of personal income growth at 0.3% unchanged from the previous reading in September Core CPE reading could show a 0.2% growth versus steady zero levels in September.

Later in the day, investors are also awaiting the release of the Beige Book report, which is important two weeks before the FOMC meeting, which is one of the pillars on which the Fed's monetary policy makers base their decisions and directions to support and stimulate the US economy. With the market now looking at the developments of the trade war between Washington and Beijing.

Technical Analysis

EUR / USD is showing slight negative trading at the beginning of the day, in a sign that the price is heading to resume the expected bearish trend for the coming period, where it gets a negative signal through Stochastic, waiting to stimulate the price to achieve our expected targets at 1.0995 then 1.0950.

Therefore, the bearish scenario will remain valid unless 1.1065 is breached and stabilized above it.

Expected trading range for today is between 1.0930 support and 1.1065 resistance

Expected trend for today: Bearish