The single currency of the European Union region fluctuated in a narrowly bearish range during the Asian session, making its third straight weekly loss as it stabilized near its lowest level in more than two years against the US dollar on the brink of developments and economic data expected Friday by Eurozone economies The US economy is the largest economy in the world.
At 05:21 am GMT, the EURUSD fell 0.06% to 1.1078, compared to the opening at 1.1085, after recording a low of 1.1070 and a high of 1.1097.
The markets are looking to release labor market data for Spain, the fourth-largest economy in the euro area, with the Unemployment Change Index reading, which may reflect a contraction of the decline to 21.4K from 63.8K in June before we see data from Italy's manufacturing sector, the third largest economy With the industrial production reading reading, which could show a 0.4% drop from 0.9% in May.
Italy may also see the release of retail sales, which may show a 0.4% rise from 0.7% in May, in conjunction with the release of the same indicator for the whole euro zone, which could show a rise of 0.3% versus 0.3%, and a reading of Producer prices for the region as a whole, which may reflect the contraction of the contraction to 0.4% from 0.1% in May, while the annual reading of the index may show a slowdown in growth to 0.8% versus 1.6%.
On the other hand, investors are currently looking for the US economy to reveal labor market data for the last month, which could reflect a drop in unemployment rates to a 49-year low of 3.6% versus 3.7% in June, while the change in jobs for sectors The pace of job creation slowed to 164,000 from 224,000, and the average hourly earnings index may show a 0.2% growth rate.
This comes ahead of the release of the trade balance, which may reflect a contraction of the deficit to $ 54.2 billion from $ 55.5 billion in May, and before the factory orders reading, which may show a 0.6% rise versus a 0.7% drop in May, With the final reading of the University of Michigan Consumer Confidence Index extending to 98.5 from July's preliminary reading of 98.4 versus 98.2 in June.
The Federal Open Market Committee on Wednesday approved a federal funds rate cut of 25 basis points for the first time in more than a decade, which was expected in the markets. Federal Reserve Governor Jerome Powell said during his press conference after the end of the events The meeting of the Federal Committee because the decision came in view of the "global developments" and "weakening inflation".
Technical Analysis
The EUR / USD pair did not show any strong movement yesterday and continues to fluctuate around support for the bearish intraday channel shown in the picture. As long as the price is below 1.1180, our bearish outlook remains valid for today, supported by the negative pressure formed by SMA 50, Our next targets start at 1.1000 and extend to 1.0857 after exceeding the previous level.
The trading range for today is among the key support at 1.0950 and resistance at 1.1140
The general trend for today is bearish.