The single currency of the European Union region fluctuated in a narrow upward range during the Asian session to see its rebound to its second-lowest session since March 11 against the US dollar on the eve of developments and economic data expected on Thursday by the Eurozone economies and the US economy.
At 4:50 am GMT, the EURUSD rose 0.07% to 1.1252, compared to the opening at 1.1244 after the pair hit a session high of 1.1258 and a low of 1.1258.
The markets are looking for the euro zone's biggest economy to show inflation data with the CPI reading, which could reflect a 0.6% increase from 0.4% in February, before we see the same indicator for Spain as the region's fourth-largest economy Which may also show accelerated growth to 1.4% versus 1.1% in February.
This comes before we see the Euro-Zone economy as a whole, the annual release of the M-3 money supply, which may reflect the accelerated growth to 3.9% versus 3.8% in January coinciding with the disclosure of the annual reading of the index of private loans, which may also clarify Growth accelerated to 3.3% from 3.2% in January.
The European Union's new deadline for the exit of the United Kingdom from the European Union was set for April 12 saying it had only two weeks before the British parliament to determine the fate of the exit.
In the same vein, also expressed on Wednesday the chief EU commissioner on the issue of the exit of the United Kingdom from the European Union Michel Barnier that Britain can still remain within the Union and retreat from exit adding that all possibilities are available before the new deadline for exit and that Britain must bear the consequences the decision to leave the Union explaining that it is up to Britain to take its decision on the issue of exit.
On the other hand, investors are looking forward to what Federal Reserve Vice President and Federal Open Market Committee (FOMC) Chairman Randall Quarles will talk about on the Financial Stability Board's agenda at the European Central Bank's policy conference in Frankfurt, which may reflect a rise of 1 thousand requests to 222 thousand applications.
In parallel to the reading of GDP reading, which may reflect the contraction of the largest economy in the world to 2.4% compared to 2.6% growth in the previous preliminary reading for the fourth quarter, compared to the expansion of 3.4% in the third quarter, while the same index may reflect the price stability of growth at 1.8%, unchanged from the previous preliminary reading for the fourth quarter and the previous reading for the third quarter.
To show housing data, which may reflect slower growth of existing home sales 0.1% from 4.6% in January. The Federal Reserve cut its growth forecast, raised its forecast for unemployment and dropped its expectations for a rate hike this year amidst the province. On its expectations of raising it once next year with its confirmation of interest stabilization and the end of the reduction of bond repurchases in September.
Technical analysis:
EURUSD is trading near the first target at 1.1240, and the pair is showing a continuous bearish trend in a signal to break the mentioned level and then opening the way towards the next target at 1.1180.
Therefore, we will maintain our bearish outlook with support from SMA 50, noting that a break of 1.1278 will halt the expected decline and push the price to start short and short term recovery attempts.
The trading range for today is expected between 1.1170 and 1.1310 support
The general trend for today is bearish