The single currency of the European Union (EU) has fluctuated in a narrow, bearish range during the Asian session to see its lowest since early August, when it tested its lowest since 16 May 2017 against the US dollar amid tight economic data from the region's economies. The euro is on the cusp of the economic developments and data expected on Friday by the US economy, the largest economy in the world.
At 04:41 am GMT the EURUSD fell 0.13% to 1.1066 levels from the opening at 1.1080, after hitting a three-week low of 1.1061, while hitting a session high of 1.1086.
Investors are currently awaiting the US economy to release housing data from the release of the New Home Sales which may reflect a 0.2% decline to 645K versus a 7.0% rise of 646K in June, in conjunction with the Federal Reserve Governor. Jerome Powell under the title "Challenges of Monetary Policy" during the proceedings of the Jackson Hole Symposium.
This comes hours after last Wednesday's release of the minutes of the Federal Open Market Committee meeting held on July 30-31, in which it was acknowledged to cut interest rates on federal funds for the first time in more than a decade by 25 basis points to between 2.00% and 2.25%, which was in line with expectations at the time, with the view that the reduction came to support the pace of growth and combating the weakness of inflation in the shadows of trade protectionism.
Technical Analysis
The EURUSD is showing more narrow range trading, still below the 1.1100 barrier, thus, no change to the expected bearish intraday and short term scenario, which continues to be supported by SMA 50, awaiting a visit of 1.1000 as the next major stop. Remind the importance of stability below 1.1180 to continue the expected decline.
Expected trading range for today is between 1.0980 support and 1.1140 resistance.
Expected trend for today: Bearish.