EUR Analysis 29.11.2019

The euro was steady in the European market on Friday against a basket of global currencies, in a limited range of trading against the US dollar, as investors were reluctant to build new positions, in anticipation of the release of inflation data in Europe in November, which provides strong evidence on the possibility of continued ECB In expanding monetary stimulus to support economic recovery and counter recessionary pressure.

The euro against the dollar by 07:15 GMT, trading at $ 1.1009 from an opening price of $ 1.1006 after recording the highest price of $ 1.1012, and the lowest of $ 1.1006.

During Thursday's trading, the euro gained about 0.1% against the dollar, recovering from a two-week low of $ 1.0992 the previous day.

In November, which officially ends when prices are settled today, the single currency lost 1.3% against the US dollar, resuming its monthly losses, which were temporarily halted in October for the first time in four months.

The monthly loss is attributed to improved risk appetite among investors, with a focus on buying higher-yielding currencies, as positive developments in US-China trade talks and the world's two largest economies are nearing completion of the first phase of the trade agreement.

Later in the day, investors awaited important data from Europe on key inflation levels in November, providing strong evidence of possible ECB stimulus measures at upcoming meetings.

By 10:00 GMT, the preliminary November CPI reading is expected to rise 0.8% from a 0.7% rise in October, excluding food and fuel prices expected to rise 1.2% from a 1.1% increase the previous reading.

Technical Analysis

The narrow range dominated the EURUSD trading yesterday, thus, there is no change in the bearish trend scenario which depends on stability below 1.1065, waiting for the next target at 1.0950.

Keep in mind that a break of 1.1065 will stop the expected decline and lead the price to make gains starting at 1.1105 and extending to 1.1180.

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

Expected trend for today: Bearish.