EUR analysis 18.02.2020

The euro currency fluctuated in a narrow range slanting towards a decline during the Asian session to witness the lowest since April 24 of 2017 against the US dollar on the threshold of developments and economic data expected today by the euro area and the US economy, which includes the speech of a member of the Federal Market Committee Open and the President of the Minneapolis Federal Reserve on the proposal to amend education in Minnesota at the Minnesota Professional Affairs Council in St. Paul.

At exactly 05:09 AM GMT, the euro against the US dollar fell 0.05% to 1.0831 levels compared to the opening levels at 1.0836, after the pair achieved its lowest level in three years at 1.0823, while achieving the highest during the trading session at 1.0838.

The markets are looking to reveal a statistical reading of the ZEW economic sentiment index for Germany, the largest economies in the eurozone and eurozone economies as a whole, which may reflect the shrinking widening in Germany and the region as a whole to the value of 20.0 and 21.3 compared to 26.7 and 25.6, respectively, last January. And this comes in conjunction with the activities of the finance ministers of the euro area Ecovin in Brussels.

This comes after hours of Eurogroup meetings and the report that touched on the fact that the finance ministers of the eurozone member states in addition to the Commissioner for Economic and Monetary Affairs discussed a document calling for more financial stimulus measures, and some officials noted, according to Reuters news agency yesterday that it is expected to sleep Adoption of the document that could lead to Germany's move to increase government spending on Tuesday in Brussels.

On the other hand, investors are currently looking to the US economy for the disclosure of industrial sector data with the release of the New York Industrial Index reading, which may reflect a widening of 5.1 versus 4.8 in January, and this comes before we witness the disclosure of housing market data with The housing index reading was released by the National Association of Home Builders, which may reflect stability at $ 75 in January.

Technical analysis

The euro against the dollar pair shows quiet negative trading, gradually moving away from the 1.0860 level, reinforcing the expectations of the continuation of the downside movement during the coming period, which targets the 1.0760 level as a next station.

SMA 50 continues to support the suggested descending wave, whose targets extend to reach 1.0680 after crossing the previous level, noting the importance of holding below 1.0860 for the continuation of the expected decline.

The expected trading range for today is between 1.0750 support and 1.0900 resistance.

Expected trend for today: bearish.