EUR analysis 08.01.2020

The single currency fluctuated the euro in a narrow range slanted toward decline during the Asian session to witness its bounce to the fourth session in six sessions from its highest since the seventh of last August against the US dollar on the cusp of developments and economic data expected today Wednesday by the economies of the euro area and the American economy the largest economy in the world.

At 05:39 am GMT, the euro against the US dollar fell 0.03% to 1.1150 levels compared to the opening levels at 1.1153, after the pair achieved its lowest level during the trading session at 1.1145, while it achieved the highest at 1.1168.

Markets are looking for Germany, the largest economy in the eurozone, to release the factory orders reading, which may show a 0.3% increase compared to a 0.4% decline in October, while the annual seasonally adjusted reading may reflect a decrease in the decline to 4.7% against 5.5%, before we witness By France, the second largest economy in the region, the trade balance reading was released, which may reflect the widening deficit to 5.0 billion euros, compared to 4.7 billion euros in October.

On the other hand, investors are looking for the US economy to disclose preliminary data for the labor market with the release of the index of change in private sector jobs, which may reflect the acceleration of the pace of job creation to 160 thousand added jobs compared to 67 thousand added jobs in November, and that comes before To witness the speech of Deputy Governor of the Federal Reserve and member of the Federal Open Market Committee of Elle Brenard at the Urban Institute in Washington.

Technical analysis

The EURUSD pair found strong ground when supporting the bullish intraday channel, and shows positive attempts supported by the current stochastic positivity, but SMA 50 constitutes a negative pressure that might hinder the price's mission by returning to trade above the 1.1180 level.

Therefore, we prefer stopping on the neutral until we get a clearer signal for the next direction, noting that a break of 1.1130 will press the price to continue the decline and visit the main support channel for the upside at 1.1045 as a next negative target, while a break of 1.1180 will lead the price to resume the main bullish trend whose target resides Next at 1.1320.

The expected trading range for today is between 1.1050 support and 1.1250 resistance.

Expected trend for today: neutral.