The single currency, the euro, fluctuated in a narrow, bullish range during the Asian session against the US dollar on the cusp of economic developments and data expected today, Wednesday, by the economies of the euro area as a whole and the US economy, the largest economy in the world, which includes a speech by a member of the Federal Open Market Committee and President of the Federal Reserve Bank of New York John Williams.
At 06:45 AM GMT, the euro pair rose against the US dollar by 0.10% to 1.1874 levels compared to the opening levels at 1.1862, after the pair achieved its highest level during the session's trading at 1.1877, while it reached the lowest level at 1.1851.
The markets are looking to the Euro-zone economies to reveal inflation data, with the release of the final annual consumer price index reading, which may confirm a contraction of 0.3%, with little change from what it was in the initial reading for last month and the previous annual reading for last September. The core annual reading of the same index confirms a growth of 0.2% as well, unchanged from the previous annual reading.
On the other hand, the markets are looking forward to the developments of the ongoing talks between the European Union and Britain regarding the issue of Britain's exit from the European Union, especially with the approaching final deadline. To an agreement if circumstances permit.
It is noteworthy that some of the report touched at the beginning of this week that Brussels called on London to take a decision regarding the talks, and that progress has been made regarding the legal texts of the new agreement between them, but that there are no mutually acceptable solutions regarding the fisheries file and equal opportunities, and we have also recently followed the issuance of a report from the office British Prime Minister Boris Johnson spoke of Johnson's complete confidence that his country will prosper even if its negotiations with the European Union fail.
On the other hand, investors are currently awaiting the US economy to reveal the housing market data, with the release of both the Housing Starts Index and the Building Permit Index, and amid expectations that the building permits reading will reflect an increase to about 1.57 million permits, compared to about 1.55 million permits in September. Also, a reading of start-up homes may indicate an increase to about 1.45 million homes, compared to about 1.42 million homes in September.
This comes, before we witness the speech of a member of the Federal Open Market Committee and the President of the New York Federal Reserve, John Williams, in a webinar hosted by the Association for the Advancement of Editing and Writing. Long to cut him "before he fully recovered from the Corona pandemic, once again asking the US Congress to adopt an additional stimulus package.
Technical analysis
The euro versus dollar pair starts today's trading with a slight bullish tendency, indicating a direction to resume the main bullish trend, noting that the stochastic indicator continues to gather positive momentum, waiting to stimulate the price to rally upwards, and then visit our next main target at 1.2011.
Thus, we will continue suggesting the bullish trend for the upcoming period, noting that a break of 1.1820 will stop the expected rise and press the price to test 1.1720 areas before any new attempt to rise.
The expected trading range for today is between 1.1800 support and 1.1960 resistance.
The expected general trend for today: Bullish.