EUR analysis 11.12.2019

The fluctuation of the single currency, the euro, in a narrow range slanted toward decline during the Asian session, to witness its bounce back for the third session in six sessions from its highest since last November against the US dollar, amid the scarcity of economic data by the euro area economies and on the cusp of developments and economic data expected today Wednesday by the US economy, which includes the decisions and directions of monetary policy makers at the Federal Reserve and the Federal Reserve Governor Jerome Powell's press conference in Washington.

At exactly 04:53 AM GMT, the euro against the US dollar fell 0.02% to 1.1090 levels compared to the opening levels at 1.1092, after the pair achieved its lowest level during the trading session at 1.1089, while achieving the highest at 1.1096.

Investors are awaiting by the US economy to disclose inflation data with the release of the consumer price index, which may reflect a slowdown in growth to 0.2% compared to 0.4% last October, while a substantial reading of the same indicator may show stability in growth of 0.2%, while The annual reading of the index may indicate acceleration of growth to 2.0% compared to 1.8%, and the substantial annual reading of the index may reflect the stability of growth at 2.3%.

This comes in conjunction with the activities of the Federal Open Market Committee meeting held in Washington, through which the expected short-term benchmark interest rates for the second consecutive meeting will be maintained at between 1.75% and 2.00%, while revealing the expectations of the members of the committee for the rates of growth, inflation and unemployment. In addition to the future of interest rates for the next three years.

Up to the press conference that Fed Governor Jerome Powell will hold about half an hour after the FOMC meeting ends to comment on the Fed’s policy makers ’decisions that have been witnessing widespread criticism by US President Donald Trump who is asking the Federal Reserve and his Governor Powell to move forward in Reducing interest on federal funds "to zero or less".

Technical analysis

The euro against the dollar made a further rise yesterday to approach the pivotal resistance level of 1.1108, and we notice that the price starts the day with a downward slope in a sign of the resumption of the expected downside trend for the coming period, supported by the stochastic negativity that appears through the four-hour time frame.

Thus, we believe that the field is open for trading negatively today, noting that we are waiting for targeting the levels of 1.0995 then 1.0950 mainly, while stability below 1.1108 is an important condition for the continuation of the expected decline.

The expected trading range for today is between 1.1000 support and 1.1140 resistance.

Expected trend for today: bearish.