EUR analysis 05.12.2019

The euro currency fluctuated in a narrow range tilted to the upside during the Asian session to witness its rebound to the fourth session in five sessions from the lowest since October 10 against the US dollar on the cusp of developments and economic data expected today Thursday by the economies of the euro area and the American economy, which The second half of the Fed’s Deputy Governor and member of the Federal Open Market Committee Randall Quarles before the US Congress in Washington includes.

At exactly 05:35 am GMT, the euro pair rose against the US dollar by 0.05% to 1.1084 levels compared to the opening levels at 1.1078, after the pair achieved its highest level during the trading session at 1.1087, while achieving the lowest at 1.1078.

Markets are looking for Germany, the largest economy in the eurozone, to release the factory demand reading, which may show a slowdown in growth to 0.3% versus 1.3% last September, while the annual seasonally adjusted reading may reflect a shrinking decline to 4.7% versus 5.4% in September , Before we saw the release of the retail sales index for the euro area as a whole, which may indicate a 0.4% decline compared to a 0.1% rise in September.

In the same context, the annual reading of the retail sales index for the euro area as a whole may explain the slowdown in the pace of growth to 2.2% compared to 3.1% in September, in conjunction with the release of the end reading of employment change also for the euro area as a whole which may reflect stability at 0.1% without change It is mentioned about the first reading for the third quarter and compared to 0.2% in the previous reading for the second quarter of last year.

Investors are also looking to reveal the seasonally adjusted final reading of the gross domestic product for the euro area as a whole for the third quarter, which may reflect the stability of the expansion at 0.2%, little changed from the initial reading of the last quarter and the previous reading of the second quarter, as the annual reading of the same indicator may show the stability of growth at 1.2 % Without significant change from the previous initial reading and against 1.1% in the previous annual reading for the second quarter.

This comes in conjunction with the activities of the Finance Ministers of the Eurozone Ecofin in Brussels, which the Finance Ministers of the European Union member states attend in order to discuss many financial issues such as mechanisms to support the euro and government financing, and these meetings are closed and the media are not allowed to transfer them, but officials returned with They hold press interviews with the media throughout the day.

On the other hand, investors from the US economy are awaiting the release of the index of subsidy requests for the past week at the end of last month, which may reflect an increase by two thousand requests to 215 thousand requests compared to 213 thousand requests in the previous weekly reading, as may read the index of subsidy requests investors for the past week On the 23rd of last month, an increase of 20 thousand requests to 1,660 thousand requests compared to 1,640 thousand requests.

This comes in conjunction with the release of the Trade Balance Index reading, which may reflect a narrowing of the deficit to $ 48.7 billion compared to $ 52.5 billion in September, and before the disclosure of the factory orders reading, which may show a 0.3% rise compared to a 0.6% decline in September, Up to the Federal Reserve Deputy Governor and member of the Federal Commission Randall Quarles testified about supervision and regulation before the Senate Banking Committee.

Technical analysis

The EURUSD pair faced strong resistance at 1.1105 yesterday, and is trying to gain positive momentum now in an attempt to resume the bullish tendency and breach the mentioned level to open the way for visiting the 1.1180 level which represents our next target.

In general, we continue to favor the bullish trend with price stability above 1.1065, noting that SMA 50 continues to support the suggested bullish wave.

The expected trading range for today is between 1.1000 support and 1.1160 resistance.

Expected trend for today: bullish.