The single currency of the European Union region fluctuated in a narrowly bullish range during the Asian session to reflect its rebound for the third straight session since May 16, 2017 against the US dollar on the eve of developments and economic data expected Monday by Eurozone economies The US economy is the largest economy in the world.
At 0513 GMT, the EURUSD rose 0.18% to 1.1128, compared to the opening at 1.1109, after reaching a high of 1.1133, while reaching a low of 1.1105.
The markets are looking for Spain, the fourth-largest economy in the euro area, to reveal the PMI service index, which may show the stability of the widening at 53.6 unchanged from last June, before seeing the same indicator of Italy's third largest Economies of the region, which may reflect a widening to 50.6 versus 50.5 in June.
Investors are also looking for France, the second-largest economy in the euro area, to reveal the final reading of the PMI index, which may show the stability of the widening at 52.2 unchanged from the previous reading of the previous month, compared to 52.9 in June, before the final reading of the same index of Germany's largest The economies of the region, which may also show the stability of the widening at 55.4, is little changed from the previous reading, compared to 55.8.
Leading to the release of the final reading of the euro zone PMI which may show the stability of the widening at 53.3, unchanged from the previous reading, and from 53.6 in June, before we also see the Euro Zone economy as a whole, Consumer spending, which showed a contraction of 6.9 to 5.8 in July.
On the other hand, investors are currently waiting for the US economy to release the final index of the Institute of Supply of Service by Markit for the United States, which may reflect the stability of the widening at 52.2, unchanged from the preliminary reading for July and compared to 51.5 in June, before the disclosure From the Institute of Supply Service Index, which may show a breadth of 55.5 vs. 55.1 in June.
US President Donald Trump said last Friday that a trade agreement with the European Union had been signed that would increase US meat exports to EU countries. The move would contribute to reducing the extent of damage to agricultural activity. The United States, as a result of the trade war waged by his administration with China.
Technical Analysis
The EUR / USD pair is trading positively on its way towards a possible test of pivotal resistance 1.1180 and is moving steadily within the bearish intraday channel shown in the image, noting that SMA 50 meets the mentioned resistance to add more strength to it, Now, awaiting a bounce back to the 1.1000 test initially.
Therefore, we will maintain our bearish outlook for stability below 1.1180, with the reminder that breaking the 1.1000 will extend the downside wave to 1.0857 as the next major station.
The trading range for today is expected between 1.1030 and 1.1200 support
The general trend for today is bearish.