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Euro Analysis 16.05.2019

The single currency of the European Union region fluctuated in a narrowly bullish range during the Asian session to see its rebound for the ninth session in 15 sessions from its lowest since May 30 of 2017 against the US dollar on the eve of economic developments and data expected Thursday by the economies of the region The euro and the US economy are the largest economy in the world.   

At 4:50 am GMT, the EURUSD rose 0.03% to 1.1207 compared with the opening at 1.1204, after reaching a high of 1.1209, while reaching a low of 1.1201.   

German Central Bank Governor Jean Widman is expected to deliver a speech under the headline "The Challenges of the German Economic Model" at the German Savings Bank Association in Hamburg. This comes before the Eurozone economy as a whole sees the seasonally adjusted Trade Balance Which could reflect a contraction of the surplus to 19.0 billion euros from 19.5 billion euros in February. 

This comes in line with Italy's trade balance, which may indicate a surplus of € 4.24 billion to € 3.27 billion, amid the Eurogroup meetings in Brussels attended by the President of the Eurogroup, the finance ministers of Eurozone member states, the Commissioner for Economic and Monetary Affairs and the Governor of the Bank Which discusses many financial issues such as euro support mechanisms and government funding.   

On the other hand, investors are currently waiting for the US economy to release the index of claims for the week ending May 11, which may reflect a decline of 8 thousand requests to 220 thousand requests compared with 228 thousand applications in the previous weekly reading, Investors' applications for the fourth week of this month fell 4K to 1,680K versus 1,684K.   

This is in conjunction with the disclosure of housing market data and the reading of the Construction Starts Index and Construction Permit, which may reflect an increase during April. Building permits are expected to rise 1.4% to 1,287 thousand versus 1.7% In March. Existing homes may also rise 6.2% to 1,209,000 versus 0.3% at 1,139,000.   

Markets also look to the world's largest industrial nation to see the Philadelphia Industrial Average read out, which could reflect a widening of 10.0 versus 8.5 in April, and the upcoming talk by Federal Reserve Vice President and Federal Open Market Committee member Ellen Bernard about expectations For economic and monetary policy at the annual symposium of the National Association of Taxation in Washington. 

The EUR / USD pair has tested the 1.1180 level but has not been able to break it yet. The price is under continuous negative pressure coming from the SMA 50, awaiting confirmation of the breach towards 1.1100 and 1.1000 which represent our next key targets.   

Therefore, we will continue to bias the bearishness during the coming sessions provided that the price keeps the daily closing below 1.1250.   

The trading range for today is expected among the key support at 1.1120 and resistance at 1.1280   

The general trend for today is bearisharish 

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