The single currency of the European Union region fluctuated in a narrowly bearish range during the Asian session against the US dollar on the eve of developments and economic data expected Thursday by the Eurozone economies and the US economy, the largest economy in the world.
At 5:11 am GMT, the EURUSD dropped 0.02% to 1.1367, compared with the opening at 1.1369, after reaching a low of 1.1365, while the highest at 1.1377.
Looking ahead to the markets for the largest euro area economies Germany, the final reading of the consumer price index, which may reflect the stability of growth of 0.1%, unchanged from the previous preliminary reading for the month of November, compared with 0.2% growth in October, before The final reading of the same index for France shows the second largest economy in the eurozone, which could reflect a contractionary stability of 0.2% versus 0.1% growth.
This comes ahead of the European Central Bank meeting, during which it is expected that interest rates will be maintained at current zero levels, the marginal lending rate will be stabilized at 0.25%, the interest rate will remain negative at 0.40% and the quantitative easing program will be announced. To the speech of ECB President Mario Draghi at the European Central Press Conference.
On the other hand, investors are looking for the US economy to read the index of claims for the week ending on December 8, which may reflect a decrease of 5 thousand requests to 226 thousand requests in the previous weekly reading, while the reading of the index of continuing claims for the week with Earlier this month rose by 19 thousand applications to 1,650 thousand in the previous weekly reading.
While the reading of the import price index, which may reflect a decline of 1.0% against 0.5% in October, while the annual reading of the same index may show a slowdown in growth to 1.3% versus 3.5%, before we see the Treasury US Treasury budget reading, which may reflect a widening deficit to $ 193.5 billion versus $ 100.5 billion in October.
Technical Analysis
The EUR / USD pair traded around 1.1365 after yesterday's rally, and the price is under continuous negative pressure coming from SMA 50, which supports the continuation of the expected bearish scenario over intraday and short term, which depends on stability below 1.1443. While its targets start with breaking the 1.1300 level to confirm the opening of the way towards the 1.1181.
The trading range for today is expected between 1.1260 and 1.1440 support
Support and resistance:
Support: 1.1341-1.1300-1.1210
Resistance: 1.1386-1.1443-1.1500
The general trend for today is bearish