EUR analysis 20.01.2020

The single currency fluctuated the euro in a narrow range tilted to the upside during the Asian session to witness its rebound to the second session from the lowest since January 10 against the US dollar on the threshold of developments and economic data expected on Monday by Germany, the largest economy in the euro area amid the scarcity of economic data in Early this week by the US economy due to Martin Luther King's Day celebration in the United States.

At exactly 05:47 am GMT, the euro pair rose against the US dollar by 0.03% to 1.1097 levels compared to the opening levels at 1.1094, after the pair achieved its highest level during the trading session at 1.1099, while achieving the lowest at 1.1089.

The markets are looking for Germany to release the PPI reading, which is an initial indication of inflationary pressures that may reflect the stability of stability at zero levels, little changed from the previous reading in November, in conjunction with the meetings of the Eurogroup attended by the finance ministers of member states in the region. , Commissioner for Economic and Monetary Affairs and the Governor of the European Central Bank, which discusses many financial issues such as mechanisms to support the euro and government funding, up to the disclosure of the monthly report of the German Central Bank.

Other than that, we followed last week, European Trade Commissioner Philip Hogan commented on the European-American trade talks that took place last Thursday, that the spirit of cooperation prevailed during the talks and that the auto sector was not discussed and the talks did not include the file of increasing customs duties, explaining that the two parties are still They discuss taxes on technology giants and that the European Union wants to reorganize its trade relations with the United States, adding that it is the last trade agreement between the United States and China that is complex and that the European Union must study it in a good way.

Technical analysis

The euro against the dollar trades stable below 1.1100, and the MA 50 constitutes a negative pressure that supports the chances of the continuation of the bearish tendency to test the bullish channel support located at 1.1065.

Therefore, we will continue to favor the bearish trend during the upcoming sessions, noting that breaching the mentioned support will push the price to visit the 1.0985 level as a next target, while the expected decline will remain if the price is unable to breach the 1.1180 level and hold above it.

The expected trading range for today is between 1.1040 support and 1.1160 resistance

Expected trend for today: bearish.