The single currency of the European Union region fluctuated in a narrowly bearish range during the Asian session to see its rebound to its fourth-highest session since October 22 against the US dollar on the eve of developments and economic data expected on Monday by the third largest economy of the euro zone Italy Amid the US market absent Monday due to Veterans Day holiday.
At 5:18 am GMT, the EURUSD dropped 0.17% to 1.1317 compared to the opening at 1.1336 after hitting its lowest level since the beginning of November at 1.1312 while the highest at 1.1332 .
The markets are currently eyeing the release of the Industrial Production Index, which could reflect a 0.5% drop from a 1.7% rise in August, coinciding with a rise in Italian bond yields following the EU warning from Kon The budget deficit of the Italian government will move dangerously near the Union's borders by three percent.
Technical Analysis:
EURUSD is trading around the 1.1325 level, and the price is under further negative pressure which makes us expect the bearish bias to continue in the coming sessions, waiting for the break of 1.1300 to confirm the extension of the downside wave towards 1.1181 as the next major station.
Stability below 1.1443 is important for the continuation of the expected decline, as breaching it will lead the price to start recovery attempts targeting the areas of 1.1550 then 1.1705 initially.
The indicators give a negative view of the decline as the Stochastic is still in the oversold area.
The SMA 7 is pushing the price to push for further downside while we wait for the cross of the SMA20-SMA50 to confirm the ideal descending order.
The trading range for today is expected among 1.1230 support and 1.1400 resistance.
Support and resistance:
Support: 1.1300-1.1230-1.1180
Resistance: 1.1360-1.1400-1.1450
The general trend for today is bearish.