The single currency of the European Union (EUR) has fluctuated in a narrow and bullish range during the Asian session against the US dollar on the eve of developments and economic data expected on Tuesday by the euro zone's largest economy and amid tight economic data earlier this week by the world's largest economy.
At 05:11 am GMT the EURUSD rose 0.07% to 1.1086 levels from the opening at 1.1078, the pair's lowest level during the session, while the pair reached its highest at 1.1089.
Markets are currently awaiting the euro zone's largest economy, Germany, to release its PPI reading, which is a preliminary indicator of inflationary pressures that may reflect stability at zero levels against a contraction of 0.4% last June, while the annual reading of the index may show slower growth to 1.0 % Vs. 1.2% in the previous annual reading for June.
On the other hand, investors are awaiting the outcome of the Federal Open Market Committee and Randall Quarles, Deputy Governor of the Federal Reserve, on community development at the Utah Center for Settlement Stations in Salt Lake City. Open held at the end of last July.
At the July 30-31 meeting in Washington, the Fed's monetary policy makers approved the first Fed cut in more than a decade by 25 basis points to between 2.00% and 2.25%. This was in line with expectations at the time, while saying that the reduction was to support the pace of growth and to combat the weakness of inflation in the shadows of trade protectionism.
Next Thursday, we are looking forward to the Kansas City Federal Reserve's Jackson Hole Economic Policy Symposium, which will be attended by global central bankers and finance ministers as well as academics and financial market participants from around the world. Jerome Powell under the title "Monetary Policy Challenges" during the seminar.
Technical Analysis
EURUSD shows tight range trading below 1.1100 barrier, and the price is under continuous negative pressure from SMA 50, thus we continue to favor the bearishness over intraday and short term, which aims to visit 1.1000 as the next main stop, while recalling the importance of stability. Below 1.1180 the continuation of the expected decline.
Expected trading range for today is between 1.1000 support and 1.1150 resistance.
Expected trend for today: Bearish.