The euro-zone single currency fluctuated in a narrow and bearish range during the Asian session to witness its rebound for the third consecutive session since August 14 against the US dollar on the eve of developments and economic data expected by the euro-zone economies and amid the scarcity of economic data by the US economy on Wednesday the world's largest economy.
At 04:25 am GMT, EUR / USD fell 0.04% to 1.1086 levels from the opening at 1.1090, after the pair reached a session low of 1.1085, while hitting a high of 1.1095.
Markets are currently looking ahead to Germany, the euro zone's largest economy, to reveal a consumer confidence index that may reflect a contraction in the expansion to 9.5 vs. 9.7 in August, coinciding with the release of the import price index which may reflect a contraction of 0.1% vs. 1.4% in June, while the annual reading of the index itself may show a steady decline of 2.0%.
This comes before the Eurozone economies as a whole will see the release of the annual M-3 money supply figure, which could reflect a rapid growth of 4.7% vs. 4.5% in the previous annual reading for June, coinciding with the release of the annual private loan index. For the region's economies as a whole, growth may also accelerate to 3.5% from 3.3% in June.
On Tuesday, German Economy Minister Peter Altmapper said that the upcoming trade talks between his country and the United States would be difficult, but that the global economic slowdown was increasing the chances of reaching a trade agreement. In reaching a solution to trade disputes with Europe.
German Economy Minister Altmapper has already noted that US President Donald Trump and European Commission President Jean-Claude Juncker recently agreed that the United States or the European Union should not impose tariffs on each other during trade negotiations. Observers of the political tensions in Italy, the third largest economy of the euro zone to resort to the Italian president to dissolve parliament and hold new parliamentary elections in the shadow of the differences between the five-star party and the Democratic Party there.
Technical Analysis
EURUSD is showing a slight bearish bias to move below 1.1100, and Stochastic is now providing a bearish crossover signal, waiting for the price to stimulate further negative trading over the coming sessions, and the path is open to our next target at 1.1000.
Therefore, we hold onto our bearish outlook unless 1.1180 is breached and hold above it, noting that a break above the target will push the price to 1.0857 as the next major stop.
Expected trading range for today is between 1.0980 support and 1.1150 resistance.
Expected trend for today: Bearish.