EUR analysis 11.02.2020

The euro currency fluctuated in a narrow range slanting back down during the Asian session to witness the lowest since October 2 against the dollar, amid the scarcity of economic data by the eurozone economies and looking forward to the talk of European Central Bank Governor Krisen Lagarde about the European Central Council annual report before the European Parliament In Strasbourg and on the cusp of developments and economic data expected today Tuesday by the US economy, which includes the launch of the activities of the semi-annual testimony of the Federal Reserve Governor Jerome Powell before the Congress in Washington.

At 05:26 am GMT, the euro pair fell against the US dollar by 0.01% to 1.0910 levels compared to the opening levels at 1.0911, after the pair achieved its lowest level in four months at 1.0908, while achieving the highest during the trading session at 1.0917.

Investors are currently awaiting by the US economy, the largest economy in the world, the launch of the activities of the semi-annual Governor of the Federal Reserve Jerome Powell before the Congress, where it is expected that Powell will present today the first half of his half-year testimony about monetary policy before the Financial Services Committee in the House of Representatives And that is before tomorrow, Wednesday, he will give the second half of his testimony before the Senate Banking Committee.

Markets are also looking at the US economy for the release of a job read and turnover statistic that may reflect an increase to 6.93 million compared to 6.80 million in November, before we witness the speech of FOMC members Randall Quarles about brightness The Connecticut banker, and Federal Reserve Bank of Minneapolis chief Neil Kashkari spoke at the Montana Town Hall event.

Technical analysis

The euro against the dollar pair resumed its negative trading yesterday, to start testing the 1.0900 barrier, to gradually approach our awaited target at 1.0860, and it falls under continuous negative pressure coming from the EMA50.

Consequently, we continue to favor the bearish trend for the upcoming period, noting that exceeding the target level will push the price to 1.0780 as a next negative station, while the expected decline will remain valid provided the stability is below 1.1010.

The expected trading range for today is between 1.0830 support and 1.0980 resistance.

Expected trend for today: bearish.