The single currency, the euro, fluctuated in a narrow, upward sloping range during the Asian session, to witness its stability near its highest since late 2018 against the US dollar on the cusp of economic developments and data expected on Monday by the Eurozone economies and amid scarcity of economic data at the beginning of this week by the economy. The US is the largest economy in the world.
At 06:47 AM GMT, the euro pair rose against the US dollar by 0.07% to 1.2131 levels compared to the opening levels at 1.2122, after the pair achieved its highest level during the session's trading at 1.2140, while the pair achieved its lowest level at 1.2116, with Knowing that the pair started the session on a rising gap, after ending last week’s trading at 1.2121 levels.
The markets are looking to Germany, the largest economy in the euro area, to reveal industrial sector data, with the release of the seasonally adjusted reading of the industrial production index, which may show a slowdown in growth to 1.6% compared to 1.8% last September, and this comes before we see the economies of the euro area as a whole. The release of the Sentix consumer confidence index, which reflects the widening of the contraction, to a value of 11.9, compared to 10.0 last October.
On the other hand, the chief negotiator of the European Union, Michel Barnier, said last Thursday that major differences between Brussels and London still exist in the trade talks, explaining that the outcome of the talks is uncertain, adding that both parties are committed to reaching an agreement, while an agreement cannot be guaranteed in the end This boosted market expectations that Britain would leave the European Union without an agreement by the end of this year 2020.
Technical analysis
The EUR / USD pair faced strong resistance at 1.2175, to show some temporary bearish bias, noting that the stochastic oscillator got rid of its negative momentum to reach oversold areas, while the SMA 50 continues to support the price from below.
Thus, these factors encourage us to suggest resuming the bullish trend during the upcoming sessions, noting that our next target will reach 1.2300, while achieving it requires stability above 1.2040.
The expected trading range for today is between 1.2050 support and 1.2240 resistance.
The expected general trend for today: Bullish.