EUR analysis 10.01.2020

The euro currency fluctuated in a narrow range tilted to the upside during the Asian session to witness its rebound for the second consecutive session from its highest since December 26, while it is still facing its second weekly losses in a row against the US dollar on the cusp of developments and economic data expected today. Friday by the economies of the euro area and the US economy, the largest economy in the world.

At 05:28 am GMT, the euro pair rose against the US dollar by 0.03% to 1.1109 levels compared to the opening levels at 1.1106, after the pair achieved its highest level during the trading session at 1.1111, while achieving the lowest at 1.1102.

Currently, France is looking to the second largest economy in the euro area for the release of the industrial production reading, which may reflect a slowdown in the pace of growth to 0.1% compared to 0.4% in the previous reading last October, before we witness the disclosure of the index reading itself for Italy, the third largest The region's economies, which may explain stability at zero levels, versus a 0.3% decline in October.

Otherwise, yesterday we followed up on the statements of the European Union's chief negotiator, Michel Barnier, in which he expressed that even if the Union agreed to all points in the trade agreement with Britain, this would take more than the eleven months available for negotiation, indicating that the time set for concluding an agreement It is a real challenge, adding that failure to reach an agreement will be more harmful to Britain than the Union, while touching on the importance of prioritizing around this year's tasks.

On the other hand, investors are currently awaiting by the US economy the disclosure of labor market data for the past month, which may reflect the stability of unemployment rates at the lowest in five decades of time at 3.5%, while a reading of the employment change index for sectors other than agriculture may show a slowdown in the pace of creation Jobs to 162 thousand jobs compared to 266 thousand jobs. The reading of the average hourly income index may show that the growth accelerated to 0.3% compared to 0.2%.

Technical analysis

The euro against the dollar trades stable around the 1.1100 level, and we notice that the stochastic index starts with a positive momentum loss, waiting for a negative incentive to support the chances of achieving a further decline during the upcoming sessions.

Until now, the bearish intraday direction scenario is still likely, which targets testing the support of the main bullish channel at 1.1050 before trying to resume the main bullish trend, noting that breaching this level will extend the descending wave to target the level of 1.0985 as the next station, while a break of 1.1140 is an initial key to restore the trend Rookie main.

The expected trading range for today is between 1.1030 support and 1.1180 resistance.

Expected trend for today: bearish.