The single currency of the European Union region fluctuated in a narrowly bullish range against the US dollar on the brink of economic developments and data expected on Tuesday by Eurozone economies and the US economy, the world's largest economy.
At 04:54 GMT, the EURUSD rose 0.10% to 1.1367, compared with the opening at 1.1356 after the pair hit a high of 1.1370 and a low of 1.1351.
The market is currently looking for ZEW economic sentiment for the month of December on the German economy, the largest economy of the euro area and the economies of the euro zone as a whole, which may reflect the widening decline in Germany to 25.0 compared to 24.1 last November, The same reading for the economies of the region as a whole may show a widening decline to 23.2 versus 22.0 in November.
On the other hand, investors are looking for the US economy to release the Producer Price Index (PPI), which is a preliminary index of inflationary pressures, which may reflect stability at zero levels versus 0.6% growth in October, while the annual reading of the same index may show growth slowing to 2.5% Compared with 2.9% in the previous annual reading for the month of October.
In the same context, the core reading of PPI may show a slowdown of 0.1% vs. 0.5% in October, and the core annualized reading of the same index may reflect a slowdown in growth to 2.5% from 2.6% in the previous October reading , And comes hours before the disclosure on Wednesday on the reading of the consumer price index, which may confirm the slow growth of inflationary pressures during the past month.
Technical Analysis
Yesterday, the Euro reached resistance level 1.1443 and failed to breach it to rebound towards the support level 1.1341, under the negative pressure of the moving average 50
If the price under the previous resistance will remain bearish trend
The pair is trading above the 7-20 moving averages which support the price near 1.1341
Price Formed An upside-down head and shoulders pattern. and the down movement may be the move towards the neckline.
The stochastic is moving in a sideways trend
We are trading between support 1.1294 and resistance 1.1443
Support and resistance:
Support: 1.1341-1.1294-1.1210
Resistance: 1.1386-1.1343-1.1500
The general path of the movement: Down