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 straight session since November 28 against the US dollar on the brink of developments and economic data expected Tuesday by the biggest euro zone economies Germany and the economy The largest economy in the world.
At 04:23 GMT, the EURUSD rose 0.05% to 1.1354 compared with the opening at 1.1348 after the pair reached a high of 1.1360 and a low of 1.1344.
The markets are currently looking for the German economy to detect the IFO Business Climate Index, which may reflect a contraction of the widening to 101.8 versus 102.0 last November. The same indicator of expectations may show a widening of 98.3 versus 98.7 a month The reading of the same indicator for the current assessments may show that the gap has narrowed to 104.9 versus 105.4.
On the other hand, investors are looking for the US economy to reveal the housing market data with the reading of the Construction Starts Index and the Construction Permit for the last month. The reading of the Building Permits Index is expected to decrease to 0.4% at 1,260,000 vs. 0.6% While the reading of the Construction Starts Index may indicate a slowdown in growth to 0.2% at 1.230 thousand homes compared to 1.5% at 1,228 thousand homes.
Markets are also looking closely at the FOMC meeting to be held today and Wednesday in Washington, where monetary policy makers are expected to raise federal funds rates by 25 basis points for the fourth time this year to between 2.25% and 2.50% and move forward in reducing the repurchase of government bonds and mortgage bonds.
The Federal Reserve is expected to unveil growth and inflation expectations as well as future short-term benchmark interest rates for the next three years, looking for any hints about the future tightening of monetary policy and the pace of raising federal funds over the coming period in shadow. The US president's criticism of the Fed's radical policies and the recent momentum of economic data.
Technical Analysis
The EUR / USD pair is trading around the 1.1355 level after yesterday's slight rally, as the pair was positively affected by stochastic, but since the price is below 1.1443, our bearish outlook remains intact targeting 1.1300 and 1.1181.
Moving averages pressured the price as yesterday's high yesterday stopped at SMA 20 and the SMA 50 moved near the resistance level 1.1386 to increase negative pressure on the price.
While the stochastic is still moving sideways in a reversal of medium-term sideways movement
A break of 1.1443 will lead the price to gains starting at 1.1550 and extending to 1.1705.
The trading range for today is expected between 1.1250 and 1.1420 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