The single currency, the euro, fluctuated in a narrow range that tends to rise during the Asian session, to witness its stability near its high in two and a half years against the US dollar on the cusp of economic developments and data expected today, Tuesday by the economies of the euro area and the US economy, the largest economy in the world, which includes the start of the committee meeting Federal Open Market December 15-16.
At exactly 06:58 AM GMT, the euro pair rose against the US dollar by 0.06% to 1.2151 levels compared to the opening levels at 1.2144, after the pair achieved its highest level during the session's trading at 1.2163, while the pair achieved its lowest level at 1.2143.
The markets are expecting France, the second largest economy in the region, to release the final reading of the consumer price index, which may confirm a growth of 0.2% during November and against stability at zero levels last October, before we see Italy, the third largest economy. The region released the trade balance reading, which may reflect a contraction of the surplus to 5.40 billion euros, compared to 5.85 billion euros last September.
On the other hand, investors in the US economy are awaiting the disclosure of the industrial sector data for the largest industrial country in the world with the release of the New York Industrial Index, which may reflect the stability of the expansion at a value of 6.3 during December, in conjunction with the release of the import price index reading, which It might show a 0.3% rise versus a 0.1% decline in October.
This comes, before we witness the release of the Industrial Production Index, which may reflect a slowdown in growth to 0.3% compared to 1.1% in October, in conjunction with the reading of the energy utilization rate index showing an increase to 73.1% against 72.8%, leading to the start of the FOMC meeting. The open December 15-16, during which interest rates are expected to remain between zero and 0.25%, amid hopes that the Fed will expand its asset purchase program.
Markets are also looking forward to tomorrow, Wednesday, after the Federal Reserve meeting, to reveal the committee members ’expectations of growth rates, inflation and unemployment in addition to the future interest rates for the next three years, half an hour before the press conference that Fed Governor Jerome Powell will hold tomorrow to comment on the decisions of monetary policy makers. To the Federal Reserve Bank.
Technical analysis
The EURUSD pair finds it difficult to reach the level of 1.2177 again, to show some bearish bias now, affected by the negativity of the stochastic indicator, and it may test the pivotal support floor 1.2110 before attempting to rise again.
So far, the main bullish trend scenario is still effective if the price remains above the aforementioned support, as breaking it will press the price to visit 1.2040 before any new positive attempt, while the breach of 1.2177 represents the key to the rally towards the main awaited positive station at 1.2300.
The expected trading range for today is between 1.2070 support and 1.2240 resistance
The expected general trend for today: Bullish