EUR analysis 15.01.2020

The euro currency fluctuated in a narrow range tilted to the upside during the Asian session to witness its bounce back for the third session in four weeks from the lowest since December 26 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, which includes talk of members of the Federal Open Market Committee.

At 05:16 am GMT, the euro pair rose against the US dollar by 0.04% to 1.1132 levels compared to the opening levels at 1.1128, after the pair achieved its highest level during the trading session at 1.1134, while achieving the lowest at 1.1126.

Markets are awaiting for the second largest economy in the euro area, France. The final reading of the consumer price index, which may reflect the stability of growth at 0.4%, was little changed from the previous initial reading for the month of December and compared to 0.1% growth in November, before revealing The seasonally adjusted reading of the euro zone industrial production index as a whole may reflect a 0.3% increase versus a 0.1% decline in October.

In the same context, the annual reading of the industrial production index for the euro area as a whole may reflect a decrease in decline to 1.0% compared to 2.2% in the previous annual reading for the month of October, in conjunction with the seasonally adjusted reading of the trade balance index for the economies of the euro area as a whole, which may reflect The surplus narrowed to 22.3 billion euros from 24.5 billion euros in October.

On the other hand, investors are watching by the US economy to reveal the reading of the producer price index, which is an initial indicator of inflation, which may reflect 0.2% growth against stability at zero levels in November, while the fundamental reading of the same indicator may show 0.2% growth versus deflation 0.2%, in conjunction with the disclosure of industrial sector data, with the release of the New York Industrial Index reading, which may reflect a widening of 3.7 to 3.5 in December.

This comes before we witness the unveiling of the Beige Book report, the importance of which is that it is issued two weeks before the FOMC meeting, which is one of the pillars upon which the Federal Reserve monetary policy makers build their decisions and orientations to support and stimulate the American economy, knowing that the meeting The next FOMC will be held in Washington on January 28/29.

Technical analysis

The euro against the dollar pair presented negative trades yesterday in an attempt to move away from the 1.1140 level, to keep the negative pressure in place for the coming period, supported by the moving average 50 that pushes the price down, waiting for further decline to visit the level of 1.1065, which represents our next main target.

It should be noted that breaching 1.1140 then 1.1180 levels will stop the expected decline and lead the price to resume the main bullish trend again.

The expected trading range for today is between 1.1060 support and 1.1200 resistance.

Expected trend for today: bearish.