The single currency of the European Union region fluctuated in a narrowly bullish range to reflect its rebound to its second-lowest session since January 3 against the US dollar on the eve of developments and economic data expected Wednesday by Eurozone economies and the US economy, the world's largest economy. .
At 04:39 GMT, the EURUSD rose 0.04% to the levels of 1.1365 compared to the opening at 1.1360 which is the pair's lowest during the session, while the pair reached a high of 1.1369.
The markets are currently looking for a reading of the consumer confidence index for the Euro-Zone economies as a whole, which may reflect the stability of the contraction at a value of 6 unchanged from last month. Otherwise, we followed Tuesday the EU Trade Commissioner Cecilia Malmstrom expressed readiness European Union countries to negotiate with the United States over tariffs on cars trade talks between the parties.
On the other hand, investors are looking for the US economy to reveal housing market data with the Home Price Index reading, which may reflect slowing growth to 0.2% vs. 0.3% in October, before we see the release of the Richmond Industrial Index which may The deflation shrank to a value of 6 to 8 in December.
Technical Analysis
The narrow range has dominated EURUSD trading since yesterday, and continues to fluctuate in support of the ascending channel, waiting to break this support to confirm the continuation of the bearish wave targeting 1.1181 as a next stop.
The moving averages are price resistance as they move above it and increase the negative pressure on it as the moving average 7 reaches the price level and intersects the downside with the moving SMA 50 which is resistance to the price.
The Stochastic is starting to exit the oversold area in an attempt to support the price and push it back towards retesting the resistance 1.1386 and thus the resistance of the ascending channel in which the price moves.
We note that stability below 1.1443 is important for the continuation of the expected decline, as breaching it will lead the price for gains starting at 1.1550 and extending to 1.1705.
The trading range for today is expected among the key support at 1.1270 and resistance at 1.1420
Support and resistance:
Support: 1.1343-1.1300-1.1210
Resistance: 1.1386-1.1443-1.1500
The general trend for today is bearish