The single currency of the European Union fluctuated in a narrow range upward during the Asian session to witness its fifth session rebound in seven sessions from the lowest since May 16, 2017 against the US dollar on the eve of developments and economic data expected on Friday by the economies of the region The euro and the US economy are the largest in the world.
At 05:26 AM GMT the EURUSD rose 0.15% to 1.1197 levels compared to the opening at 1.180, the pair's lowest level during the trading session, while the pair reached its highest level at 1.1198.
Markets are currently looking ahead to the euro zone's largest economy, Germany, to reveal the current account reading, which could reflect a widening surplus to 21.4 billion euros from 16.5 billion euros in May, coinciding with the release of the trade balance which could show the surplus narrowed to It was worth 18.5 billion euros against 18.7 billion euros in May, amid expectations of lower exports and higher imports during June.
This comes before the release of the second largest economy in the euro-zone, the release of the industrial production index which may reflect the stability of growth at 2.1%, little changed from the previous reading for the month of May, and to reveal the trade balance reading for Italy, the third largest economy in the region which It could show the surplus shrank to € 4.23 billion from € 5.35 billion in May.
On the other hand, investors are awaiting the US economy to reveal the PPI reading, which is a preliminary indicator of inflationary pressures that may reflect the acceleration of growth to 0.2% vs. 0.1% in June, while the core reading of the same indicator may show growth slowed to 0.2%. Against 0.3%, while the annualized reading of the index itself and the core annualized reading of the index may show growth stability at 1.7% and 2.3% respectively.
Technical Analysis
EURUSD is fluctuating at the pivotal support level of 1.1180 and remains above it so far, as the price is affected by the negativity of Stochastic, waiting for a positive incentive enough to push the price to resume positive trading again.
In general, we continue to favor the bullish trend over the coming period provided that stability above the mentioned support, as a break will press the price down again and move towards achieving negative targets starting at 1.1100 and extending to 1.1000, while the positive targets for the suggested upside wave are at 1.1350 then 1.1443.
Expected trading range for today is between 1.1130 support and 1.1290 resistance
Expected trend for today: Bullish.