The single currency of the European Union fluctuated in a narrow range tilted to decline during the Asian session to witness the bounce for the fourth session in seven sessions from the highest since July 19 last against the US dollar on the eve of developments and economic data expected on Wednesday by the euro zone economies and the economy American largest economy in the world.
At 05:13 am GMT the EURUSD fell 0.01% to 1.1170 levels compared to the opening at 1.1171 after the pair reached a session low of 1.1169, while hitting a high of 1.1180.
Markets are currently awaiting the euro zone's largest economies, Germany, to reveal the seasonally adjusted preliminary Q2 GDP reading which may reflect a 0.1% contraction versus 0.4% growth in the first quarter. Vs. 0.6% growth in the prior quarterly annual reading.
This comes before the second largest economy in the Eurozone France will see the release of the final CPI reading which may reflect a steady contraction of 0.2%, little changed from the initial reading of June and against 0.2% growth in the previous reading for May. , Before we see the release of the preliminary reading of the employment change for the euro area as a whole which may show the stability of growth at 0.3% during the first quarter.
This comes in conjunction with the release of the seasonally adjusted preliminary reading of the Eurozone's GDP index as a whole which may reflect a stable growth of 0.2%, little changed from the previous reading of the first quarter, as the annual reading of the same indicator may show the stability of growth at 1.1%, and with the release of the reading The seasonally adjusted industrial production index is also for the region as a whole which may reflect a 1.4% decline versus a 0.9% rise in May.
On the other hand, the market is currently looking for the US economy to reveal the import price index, which may reflect stability at zero levels against a decline of 0.9% in the previous reading for the month of June, while the annual reading of the same indicator may show the stability of the decline at 2.0% below Little change from what it was in June.
Technical Analysis
The EURUSD ended yesterday's trading below the 1.1180 level, putting the pair under expected negative pressure for the coming period, on its way to achieving negative targets starting at 1.1100 and extending to 1.1000.
Therefore, the bearish bias is likely for today, supported by the negativity of Stochastic and SMA 50, noting that breaching 1.1180 then 1.1210 will stop the expected decline and push the price to start fresh recovery attempts.
Expected trading range for today is between 1.1080 support and 1.1240 resistance.
Expected trend for today: Bearish.