The single currency of the European Union region fell during the US session to see its second straight session since November 20 against the US dollar following economic developments and data followed Tuesday by the Eurozone economies and the US economy, the world's largest economy.
We followed the release of ZEW economic confidence for both Germany and the Euro-zone economies, which showed a decline in Germany to 17.5 from 24.1 in November, in contrast to expectations of a 25.0-fold decline. The same decline in the economies of the region as a whole To 21.0 versus 22.0, as opposed to expectations of a 23.3-fold widening.
Otherwise, European Commission President Jean-Claude Juncker expressed his surprise at the developments of the British exit agreement from the European Union in the wake of British Prime Minister Teresa May's decision to postpone the parliamentary vote that was due to take place today on the agreement, explaining that the exit agreement is the only option currently appropriate , European Council President Donald Tusk said that the European Commission will not negotiate again the exit agreement, in particular the Pakstop plan.
However, Tusk also reported through his official account that the European Commission is ready to discuss how to facilitate the process of British approval of the exit agreement regularly, adding that due to time constraints, the European Commission will discuss the possibility of not agreeing to the exit agreement and the exit of Britain from the European Union without an agreement, This came before we saw some report that Mai would meet later with Unker and Tusk.
We would like to point out that the Executive Director of the International Monetary Fund, Christine Lagarde, recently said that the recent protests in France, which forced the government to cancel the increase in fuel prices, will have negative consequences on the French economy, the second largest economy of the euro area. In the same context, His country expects the new budget deficit to rise to 2.5% of GDP.
To the report that said Italian Prime Minister Giuseppe Conte will meet Wednesday with European Commission President Juncker to discuss amendments to the Italian budget to avoid any judicial proceedings by the European Union against his government, in the same context, said Italian Deputy Prime Minister Luigi May said that the laws The European Union's budget and growth on France is similar to that applied to the Italian economy, the third largest economy of the euro area.
On the other hand, we followed the reading of the Producer Price Index (PPI), which is a preliminary indicator of inflationary pressures, which showed a slowdown in growth to 0.1% from 0.6% in October, beating expectations for stability at zero levels. The same index slowed growth to 2.5% in line with expectations versus 2.9% in the previous annual reading for the month of October.
In the same context, the core reading of the PPI showed a slowdown in growth to 0.3% from 0.5% in October, beating expectations of a slowdown of 0.1%. The core annualized reading of the same index showed that growth accelerated to 2.7% versus 2.6% In the previous annual reading for the month of October, contrary to expectations that indicated a slowdown in growth to 2.5%.
Technical Analysis
The Euro succeeded in breaching the support level 1.1341 and closing below it to succeed in achieving our first target of 1.1300 now, waiting to break this level to confirm the move towards target 1.1181, which is our next main stop, to keep the bearish trend in place and effective during the coming sessions provided stability below 1.1443.
Moving averages are currently trading above the price and increase the negative pressure on the price and push it towards further decline. While the Stochastic is trading near the oversold area on a bearish path to increase negative pressure on the price.
Therefore, we will continue to lower the downside during the coming sessions unless the 1.1443 level is breached and stability above it.
The trading range for today is expected among 1.1220 support and 1.1400 resistance
Support and resistance
Support: 11341-1.1300-1.1210
Resistance: 1.1386-1.1443-1.1500
The general trend for today is bearish