The single currency of the European Union region fluctuated in a narrow upward range during the Asian session to see its rebound to its third-lowest session since 22 January 2017 against the US dollar on the eve of developments and economic data expected Wednesday by Euro-Zone economies and the economy. The largest economy in the world.
At 05:02 GMT, the EURUSD rose 0.02% to 1.1292, compared to the opening at 1.1290, after reaching a high of 1.1320 and a low of 1.1286.
The markets are currently waiting for the euro zone's largest economy to show a seasonally adjusted quarterly GDP reading for the third quarter, which could reflect a contraction of 0.3% versus a 0.5% growth in the second quarter, while the seasonally adjusted annual reading of the same index may show slower growth To 1.2% compared to 2.3% in the previous annual reading for the second quarter.
On the other hand, investors are looking for the US economy to detect inflation data with the release of the consumer price index, which may reflect the acceleration of growth to 0.3% compared to 0.1% in September, and may show the same annual reading of the same growth accelerated to 2.5% 2.3% in the previous annual reading for the month of September.
Markets are also looking for a substantial Core CPI reading, which could reflect a 0.2% growth in growth versus 0.1% in September, while the annual reading of the same index may show a 2.2% growth stability, before we witness the testimony of a Federal Committee member and Reserve Governor Federal Randall Quarles on banking supervision and regulation before the Financial Services Committee of the House of Representatives in Washington.
Technical analysis:
The EUR / USD pair continued its rally yesterday to test the 1.1300 level and settle around it now. As the daily close below this level, the bearish scenario will remain intact, awaiting a rebound to target 1.1180 as the next major station.
Keep in mind that a break of 1.1300 will stop the negative scenario and lead the price to initially test the 1.1443 level.
The stochastic indicator reached the overbought area and started giving bearish signals. Currently, the pair is trading above the SMA7-SMA20 moving averages, giving momentum to the upside but at the same time moving SMA 50 on the downside. This strengthens the resistance strength of 1.1300.
The trading range for today is expected among the key support at 1.1180 and resistance at 1.1370.
Support and resistance:
Support: 1.1230-1.1180-1.1100;
Resistance: 1.1300-1.1350-1.1400.
The general trend for today is bearish.