The single currency of the European Union region fluctuated in a tight range to retreat during the Asian session to see a rebound to the fourth session in five sessions from its highest since October 17 against the US dollar on the eve of economic developments and data expected Wednesday by the region's largest economies Euro Germany and the US economy the world's largest economy.
At 4:11 am GMT, the EURUSD dropped 0.06% to 1.1406 compared to the opening at 1.1413 after recording the highest level at 1.1396, while the highest at 1.1415.
The markets are looking for the largest economies in the euro area 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 December and the previous reading for the month of November, The British parliament voted to reject Britain's exit from the European Union in an orderly fashion.
On the other hand, investors are looking ahead to the reading of the import price index, which may reflect a decline of 1.0% against 0.5% in November before we witness the release of housing market data with the housing index reading by the National Association of Builders Which may reflect a widening to 61 versus 60 in December.
The markets are also looking forward later today to unveil the Beige report, which is important in being issued two weeks before the FOMC meeting, one of the pillars on which the Fed's monetary policymakers build their decisions and attitudes to support and stimulate the US economy. That the next meeting of the next Federal Commission will be held on 29-30 of January.
Technical Analysis
The EUR / USD pair broke 1.1443 after closing the daily candlestick below it, pushing the pair lower during the coming sessions, awaiting the initial test at 1.1341, which breached the key to the 1.1181 rally as the next target.
The price is trading below the SMA7 and SMA20, while the SMA50 formed a support to prevent the price from falling further as it moves near the support level 1.1386.
The Stochastic is in a bearish move towards the oversold area and if it is able to enter this area of the spud negative pressure on the price and we can see a further decline.
Keep in mind that a break of 1.1443 and stability above it will reactivate the bullish scenario scenario with its first target at 1.1550.
The trading range for today is expected among 1.1300 support and 1.1500 resistance
Support and resistance:
Support: -1.1386-1.1341-1.1300
Resistance: 1.1443- 1.1500-1.1550
The general trend for today is bearish