The single currency of the European Union region fluctuated in a narrowly bearish range during the Asian session to see its 11-session rally in nineteen sessions from its highest since March 21 against the US dollar on the eve of the economic developments and data expected on Friday by speculative economies Euro and the US economy.
At 05:06 GMT, the EURUSD fell 0.15% to 1.1260, compared to the opening at 1.1277, after reaching a session low of 1.1241, while reaching a high of 1.1282.
The markets are currently awaiting the release of the Producer Price Index (PPI), which is a preliminary indicator of inflationary pressures, which could reflect the contraction of the June contraction at 0.1%, while the annualized reading may show growth slowing to 1.5% from 1.9% In the previous annual reading for the month of May.
This comes before we see the economies of the euro area as a whole disclosure of the seasonally adjusted index of the current account index, which may reflect the widening of the surplus to the value of 21.2 billion euros compared to 20.9 billion euros last April, otherwise, we have followed yesterday the Chief Commissioner of the European Union And responsible for the file of the exit of Britain from the European Union Michel Barnier that the Union will not negotiate again on the current agreement for the departure of Britain from it.
On the other hand, investors are currently looking for the US economy to be the largest economy in the world to reveal the preliminary reading of the University of Michigan consumer confidence index for July, which may reflect a narrowing to 98.6 from 98.2 in June, with expectations Consumers for inflation for one year ahead and for the next five years.
This comes ahead of the Federal Open Market Committee meeting at the annual meeting of the Central Bank Research Association in New York, including St. Louis Federal Reserve Chairman James Pollard on technology and the future of the monetary and financial system, and Federal Reserve Bank Chairman Eric Rosengren, who will participate in a panel discussion On the independence of central banks.
Technical Analysis
The EUR / USD pair made a positive trading session yesterday, which stopped before reaching 1.1295, to show some slight bearishness now, so that the price remains confined between the pivotal levels of resistance mentioned and support 1.1180. As mentioned in our recent reports, the price needs to breach one of these levels to determine The next step more precisely, thus maintaining our neutral position to date.
We will mention that breaching the resistance will lead the price to recover and achieve positive targets starting at 1.1350 and extending to 1.1443, while breaching support will press the price to resume the short and medium term downside, where the next main target is at 1.1100.
The trading range for today is among the key support at 1.1160 and resistance at 1.1350
The expected general trend today: Depends on the levels mentioned in the report