EUR analysis 23.12.2019

The single currency fluctuated the euro in a narrow range slanting back down during the Asian session to witness its rebound to the fourth session in seven sessions from its highest since August 13 against the US dollar on the cusp of developments and economic data expected today Monday by the largest economies of the euro area Germany and the American economy The largest economy in the world.

At 05:29 am GMT, the euro against the US dollar fell 0.01% to 1.1080 levels, compared to the opening levels at 1.1081, after the pair achieved its lowest level during the trading session at 1.1073, while achieving the highest at 1.1086, knowing The pair started the trading session on an upward price gap after it concluded the trading last week at 1.1079 levels.

The markets are looking to discover by Germany the reading of the import price index, which may reflect an increase of 0.4% against a decline of 0.1% last October, while the annual reading of the same indicator may show a decrease in the decline to 2.3% compared to 3.5% in the previous annual reading for the month of October This comes as October looks to reveal the German central bank's monthly report.

Otherwise, at the end of last week, we followed the statements of the President of the European Council, Charles Michael, in which he expressed a comment on the British Parliament’s vote in favor of the Brexit agreement on the date set in advance of the end of January next, that the European Union stresses the importance of ensuring There is room for negotiation in any agreement regarding future relations with Britain after its exit from the union.

It is noteworthy that German Economy Minister Peter Altmayr also noted on Friday that the clarity about Britain's exit file from the European Union helped his country to avoid the risk of recession, while he touched on the expectation that he expected a decline in trade tensions between the United States and the European Union, which had increased recently following the imposition of the administration of US President Donald Trump The European Commission has tariffs on each other's goods and Trump's threat to impose tariffs on European cars.

On the other hand, investors are currently awaiting by the US economy the disclosure of the Durable Goods Orders Index, which represents about half of consumer spending, which represents more than two-thirds of GDP in the United States, and that may reflect a slowdown in the pace of growth to 0.2% compared to 0.5% in October. October, while a substantial reading of the same indicator may show that the pace of growth accelerated to 1.5%, compared to 0.5% in October.

This comes before the release of the US housing market data with the release of the New Home Sales Index, which may indicate a 1.0% decline to 730 thousand compared to a 0.7% increase at 733 thousand in the previous reading of October. Otherwise, the markets are looking to reveal the US Treasury Its semi-annual report on economic policies and the international exchange rate.

Technical analysis

The euro against the dollar trades settled below the level of 1.1108, to face the potential negative momentary pressure, but we notice that the price is still within the bullish channel that appears in the image, which keeps the overall bullish scenario present for the coming period, and the stochastic indicator provides a positive crossover now we expect that You contribute to pushing the price up again.

Therefore, the bullish bias will be likely on the intraday and short term unless the 1.1030 level is broken and stability below it, noting that a break of 1.1108 is required to facilitate the task of achieving the first positive target at 1.1180.

The expected trading range for today is between 1.1020 support and 1.1180 resistance.

Expected trend for today: bullish.