The single currency of the European Union region saw the euro fluctuate in a narrow upward trend during the Asian session against the US dollar ahead of developments and economic data expected Tuesday by the largest eurozone economies Germany and the US economy the largest economy in the world and the middle looking for the Fed's semi- Powell to Congress.
During the Asian session, the EURUSD rose 0.02% to 1.1360 compared to the opening at 1.1358 after the pair reached a high of 1.1368 while reaching a low of 1.1354.
Investors are looking for a statistical reading from the German consumer confidence index (GFK), which may reflect the stability of the spread at 10.8, unchanged from February,
From the US economy, we look forward to the release of the housing market data with the reading of the Construction Starts Index and Building Permits, which may give a low reading during December, where construction permits are expected to show a 2.8% drop to 1,290,000 versus 5.00% at 1,328K , And the index of newly constructed houses may show a drop of 0.5% at 1,250,000 versus a rise of 3.2% at 1,256,000.
Ahead of the home price index reading, which could reflect slowing growth to 0.3% from 0.4% in November, and the upcoming event today, Federal Reserve Governor Jerome Powell's semi-annual policy statement to the Senate Banking Committee, before completing his half- Annual meeting on Wednesday with his appearance before the Financial Services Committee in the House of Representatives.
Today, at a later date, we expect the consumer confidence reading for February to rise to 124.3 from 120.2 in January, with the reading of the Rachamond Industrial Index which may give a reading of 8 versus a contraction of 2 in January.
Technical analysis:
The Euro failed to breach the resistance level 1.1361 again after retesting it to rebound towards support at 1.1312. And maintain the sideways movement it has been trading in since last week.
In general, we are in a sideways trend that tends to climb but on condition that the resistance level breaches 1.1361.
Moving averages Support the price to the upside as the SMA 50 supports the price near the support level of 1.1312 while the MA 20 is moving below the price.
The stochastic is oscillating through its bullish path towards the overbought area but giving a bearish cross signal at this moment.
In general, we look for the EUR to break above the mentioned resistance level and the target 1.1392 which the EUR managed to break through will return to the previous bullish scenario.
The expected movement for the day between support 1.1312 and resistance 1.1392
Support and resistance:
Support: 1.1312-1.1257-1.1200
Resistance: 1.1362-1.1392-1.1443