EUR analysis 13.01.2020

The single currency fluctuated the euro in a narrow range tilted to the upside during the Asian session to witness its bounce for the second consecutive session from the top since December 26 against the US dollar on the cusp of developments and economic data expected today by the economies of the euro area and the US economy the largest economy in the world.

At exactly 05:39 AM GMT, the euro pair rose against the US dollar by 0.06% to 1.1129 levels compared to the opening levels at 1.1122, after the pair achieved its highest level during the trading session at 1.1131, while achieving the lowest at 1.1113, knowing, The pair started the trading session on an upward price gap after it concluded the trading last week at 1.1121 levels.

Markets are awaiting for the largest Eurozone economies, Germany, which issued a reading of the wholesale stocks price index, which may reflect a 0.2% increase compared to a decline of 0.1% last November, before we witness from Italy the third largest economy in the region, the issuance of the retail sales reading, which may indicate an increase 0.1% vs. 0.2% decline last October. Otherwise, investors are looking to the US economy for the Treasury to reveal the federal budget reading, which may reflect the deficit narrowing to $ 15.0 billion compared to $ 208.8 billion in November.

Technical analysis

The euro against the dollar pair begins trading today with an upward tendency to retest the previously broken support for the ascending channel, which turns into an important resistance now at 1.1140, and the SMA 50 meets to add more strength to this resistance, in conjunction with the stochastic reaching the overbought areas.

Consequently, these factors encourage us to favor a bearish bounce to resume the decline during the upcoming sessions, which mainly targets testing the 1.1060 level, noting that breaching 1.1140 then 1.1180 levels will stop the negative scenario and lead the price to restore the main bullish path again.

The expected trading range for today is between 1.1030 support and 1.1200 resistance.

Expected trend for today: bearish.