The single currency of the European Union region fluctuated in a narrowly bearish range during the Asian session to see its rebound for the second session in three sessions of its highest since January 11 on the eve of developments and economic data expected on Monday by the Eurozone economies and the US economy. World economy.
At 04:58 GMT, the EURUSD dropped 0.11% to 1.1443 compared to the opening at 1.1456 after the pair reached a low of 1.1422 and a high of 1.1466.
Investors are currently looking for the Spanish economy, the region's fourth-largest economy, to release the Unemployment Change Index, which could reflect a rise of 60.3K versus a 50.6K drop in December before the Sintex Consumer Confidence Index for the region as a whole The contraction shrank to 1.1 versus 1.5 in January.
To the eurozone as a whole, as the producer price index (PPI), a preliminary index of inflationary pressures that could show a contraction of 0.7% versus 0.3% in November, coincided with the release of Italy's third-biggest consumer price index Which could reflect 0.1% growth versus 0.1% contraction in December.
On the other hand, investors are currently looking for the US economy to reveal the factory demand index, which may show a rise of 0.3% compared to a decline of 2.1% in October, and this comes hours after the data showed the labor market last month, which showed high unemployment for the month The second consecutive month to 4.0% compared to the previous forecast for December at 3.9%.
In the same context, the average hourly earnings reading showed a slowdown in growth to 0.1% from 0.4% in December, worse than expectations of 0.3%, while the Nonfarm Employment Change Index showed that job creation accelerated to 304K Adding an added 222,000 jobs in December, beyond expectations for 165,000 jobs.
Federal Reserve monetary policy makers kept the federal funds rate at 2.25% to 2.50% at the Federal Open Market Committee meeting held on 29-30 of last month as they continued to cut back on bond purchases by $ 50 billion a month. Federal Reserve Governor Jerome Powell said at the time that the committee would be patient about raising interest rates.
Technical Analysis
The EUR / USD pair is trading at the pivotal support level of 1.1443, and as we mentioned in our recent reports, the price needs to remain above this level to keep the bullish scenario intact for the next period, targeting 1.1550 then 1.1705 as the next major stops.
SMA 50 continues to support the pair from the bottom, to remain the positive scenario for today, taking into account that breaking 1.1443 and stability below it will push the price down towards levels starting at 1.1355 and extending to 1.1181 after breaking the previous level.
The trading range for today is among the key support at 1.1355 and resistance at 1.1550
Support and resistance:
Support: 1.1443-1.1386-1.1341
Resistance: 1.1512-1.1583
The general trend for today is bullish