The single currency of the European Union region fell during the Asian session in the first session of the week, the current month and quarter to see its rebound for the third session in five sessions of its highest since March 21 against the US dollar on the eve of economic developments and data expected on Monday by the economies The eurozone and the US economy are the largest economy in the world.
At 05:07 am GMT, the EURUSD dropped 0.31% to 1.1335, the pair's lowest since June 21, compared to the opening at 1.1370, while the pair reached a high of 1.1376.
The markets are looking for Spain, the fourth-largest economy in the euro zone, to see the industrial PMI reading, which may reflect a contraction at 49.6 versus 50.1 in May, before we see the same indicator reading Italy, the third largest economy in the region, Deflation to 48.9 versus 48.6 in May.
This comes ahead of the final reading of the PMI for France, the second largest economy in the Eurozone and Germany, the region's biggest economy, as well as the Euro-Zone economies as a whole, which may reflect a widening stability at 52.0 in France from 50.6 in May, 45.4 in Germany versus 44.3 in May, and deflation stabilized at 47.8 in the region as a whole against 47.7.
In addition to a reading of the unemployment rate for Germany, which may show a contraction of one thousand to 60,000 in May and a reading of unemployment rates for Italy, which may show a rise to 10.3% from 10.2% in April, The euro-zone money supply and special loans for the euro area as a whole, leading to a reading of unemployment rates for the region as a whole, which may show stability at 7.6%.
On the other hand, investors are currently waiting for the US economy to release the final PMI index by Markit for the United States, the world's largest industrial country, which may reflect the stability of the widening at 51.0, unchanged from the previous June preliminary reading And 50.5 in May.
Before we see the index of the Institute of Industrial Supply Institute, which may show a contraction of the breadth to 51.3 compared to 52.1 in May, as may show reading the same index measured in prices reduced the breadth to 52.9 compared to 53.2, in conjunction with the publication of the index of expenditure on Which may reflect a 0.1% rise versus stability at zero levels in April.
Technical Analysis
EURUSD found it difficult to continue its bullishness in the last sessions, trading negatively and drawing a double top pattern showing the chart above. The confirmation level is at 1.1350, which means that breaking it will put the price under negative pressure targeting the 1.1280 areas initially. The ascending channel is at 1.1225.
Therefore, the bearish bias will be likely for today, taking into account that the breach of 1.1385 will stop the proposed negative scenario and push the price to resume the ascending channel again.
The trading range for today is among the key support at 1.1250 and resistance at 1.1420.
The general trend for today is bearish.