The single currency of the European Union (EUR) opened in the Asian session on Wednesday as it rebounded to a fourth session since February 5 against the US dollar ahead of economic news and data expected Tuesday by Eurozone economies and the US economy.
During the Asian session, the EURUSD dropped 0.11% to 1.1327 compared to the opening at 1.1340 after recording a low of 1.1325 and a high of 1.1341.
Spain's PMI is expected to show a contraction of 54.2 versus 54.7 in January, while the same indicator for Italy, the region's third-largest economy, may see deflation extending to 49.5 from 49.7 in January.
Before showing the final reading of the PMI for both France and Germany, which may show deflation stabilizing at 49.8, little changed from last month's reading in France, versus a contraction of 47.8 in January and a widening stability at 55.1 in Germany versus 53.0, The final reading of the index for the euro area as a whole reflects the stability of the widening at 52.3 and against 51.2 in January.
And to the release of retail sales reading for the euro area as a whole, which could rise 1.3% from 1.6% last December, while the annualized reading of the same index may show growth accelerating to 2.1% versus 0.8% The ECB meeting, during which interest rates are expected to remain at their current zero levels.
From the US economy, we expect to see the final reading of the index of the Institute of Service Supply by Markit from the United States, which may reflect the stability of the wideness at 56.2 compared to 54.2 in January.
And the index of the Institute of Supply Services, which may show a breadth to 57.4 compared to 56.7 in January, and we would like to point out that the service supply is important in that the service sector in America represents more than two thirds of GDP, in conjunction with disclosure of housing market data The new home sales reading, which could reflect a decline of 8.7% to 590 thousand versus a rise of 16.9% at 657 thousand in December.
Technical Analysis
The Euro tested support area of 1.1312 yesterday and could not break it to keep the range within the range between support 1.1312 and resistance 1.1362. Therefore, we will continue to neutral until the price confirms the breach of one of these levels and then set the following targets more accurately.
Moving averages push the price lower and wait for the 20 SMA to cross with SMA 50 until we get the ideal bearish order. While the Stochastic indicator gives signs of a rise. Therefore, we remain neutral
The continuation of the negative pressure and breaking the mentioned support will push the price towards 1.1180 as the next negative target, while breaching the resistance will open the possibility of recovery attempts over the intraday, starting at 1.1443 and extending to 1.1550.
The trading range for today is among the key support at 1.1250 and resistance at 1.1420
The expected general trend for today: neutral