The single currency of the European Union region rose during the Asian session to see its rebound to its fourth lowest session since November 28 against the US dollar on the eve of developments and economic data expected Wednesday by the largest economies of the euro zone Germany and the US economy the largest economy in the world With the meeting of the Federal Open Market Committee in Washington.
The pair rose 0.17% to 1.1380, compared to the opening at 1.1361 after the pair reached a high of 1.1390 and a low of 1.1360.
Investors from Germany, the largest economy in the euro zone, are looking for initial inflation data as the Producer Price Index (PPI), an initial index of inflationary pressures, which may reflect a 0.1% contraction versus 0.3% in October, The same index slowed growth to 3.1% from 3.3% in October's annual reading.
On the other hand, investors are looking to the US economy for the current account reading, which may reflect a widening deficit to $ 125 billion against $ 101 billion in the second quarter before we foretell the release of housing market data with the release of the Existing Home Sales Index Fell 0.4% to 5.20 million from 1.4% at 5.22 million last October.
This comes in the midst of a meeting of the Federal Open Market Committee in Washington, where monetary policy makers are expected to raise federal funds rates by 25bp for the fourth time this year to between 2.25% and 2.50% And go ahead with cuts in government bond and mortgage bond purchases by $ 50 billion per month.
It is also expected that the Federal Committee will reveal after the meeting today its expectations of growth rates, inflation and unemployment in addition to the future interest rates of short-term reference for the next three years, amid the expectation of any hints about the future tightening of monetary policy and the pace of raising interest on federal funds in the coming period in shadow The US administration has been critical of the Fed's hard-line policies and the recent momentum of economic data.
Technical Analysis
EURUSD is back to test the SMA 50 which continues to form a good resistance to the positive price attempts, noting that Stochastic is moving towards the overbought area, awaiting the resumption of the expected bearish intraday and short term targeting targets 1.10000 to confirm the rally towards 1.1181 .
We note the importance of stability below 1.1443 for the continuation of the expected decline, as breaching it will lead the price to the upside and achieve positive targets starting at 1.1550 then 1.1705.
The trading range for today is among the key support at 1.1380 and resistance at 1.1443
Support and resistance:
Support: 1.1341-1.1300-1.1210
Resistance: 1.1386-1.1443-1.1500
The general trend for today is bearish