The single currency of the European Union region rose during the Asian session to see its rebound for the second straight session since November 13 after the Federal Open Market Committee (FOMC) and Kansas City Federal Reserve Chairman Esther George spoke about the economic outlook at the Kansas City Public Library And on the eve of developments and economic data expected Wednesday by the economies of the eurozone and the US economy, the largest economy in the world.
At 05:23 GMT, the EURUSD rose 0.11% to 1.1339, compared to the opening at 1.1326, the pair's lowest level during the session, while the pair reached a high of 1.1342.
The markets are currently looking for the euro zone's economy as a whole to release the seasonally adjusted Industrial Production Index, which could reflect a contraction of 0.4% versus 1.7% in November, while the same index may show a stable decline of 3.3% Than in the previous annual reading for the month of November.
On the other hand, investors are eyeing the US economy to release inflation data with the release of the Consumer Price Index (CPI), which may reflect a 0.1% growth versus 0.1% contraction in December, while the core reading of the index itself may show a 0.2% Recall that in December, the annual reading of the index may reflect a slowdown in growth to 1.5% from 1.9%.
In the same context, the annual Core CPI reading may show a slowdown in growth to 2.1% versus 2.2% in the previous December reading before we see the US Treasury Department reading the Treasury budget, which may reflect a contraction of the deficit to its value 10.5 billion compared with 204.9 billion in November.
Technical Analysis
The EURUSD made some gains yesterday to come close to testing broken support for the bullish channel appearing in the picture, accompanied by the emergence of overbought signs on Stochastic, while SMA 50 is a negative pressure against the price.
Therefore, we expect the pair to bounce back to resume the bearish trend during the coming sessions, targeting 1.1181 mainly, noting that the breach of 1.1360 will push the price to test the most important resistance of short term trading at 1.1443 before any new attempt to decline.
The trading range for today is expected among the 1.1250 support and 1.1400 resistance
Support and resistance:
Support: 1.1300-1.1216-.11181
Resistance: 1.1341-1.1386-1.1443
The general trend for today is bearish