EUR Analysis 07.11.2019

The single currency fluctuated in a narrow range against the dollar during the Asian session to witness its bounce for the sixth session since its highest since October 21, when it tested the highest since August 14 against the dollar on the eve of developments and economic data expected on Thursday before Eurozone economies are the largest in the world.

At 05:08 AM GMT, EUR / USD fell 0.06% to 1.1059 levels compared to the opening at 1.1066, after hitting its lowest level since October 16 at 1.1055, while the pair reached its highest level during trading The session was at 1.1073.

Markets are looking for Germany, the euro zone's largest economy, to release a seasonally adjusted industrial production figure, which could reflect a 0.3% decline versus a 0.3% rise in September, before Italy's third largest economy releases retail sales, which could show a 0.3% rise. Down from 0.3% in August, coinciding with the release of the ECB's monthly ECB report.

In order to reveal the quarterly forecasts of the European Commission, in conjunction with the meetings of the euro group attended by finance ministers of the member countries of the region, the Commissioner for Economic and Monetary Affairs and the Governor of the European Central Bank, which discuss many financial issues such as mechanisms to support the euro and government funding, and these meetings are closed and does not allow means However, officials have been holding interviews with the media throughout the day.

On the other hand, investors are currently awaiting the US economy to reveal the reading of the claims applications for the past week, which may reflect a decline of 3 thousand applications to 215 thousand applications, as may read the index of claims applications shows a decline of 30 thousand applications to 1,660 thousand Requested, before we see the release of a consumer credit reading which may show slower growth to $ 15.6 billion versus $ 17.9 billion in August.

Technical Analysis

EUR / USD opens today with a new bearish bias to breach the 1.1065 level and try to hold below it, which puts the price under further negative pressure expected for the coming period, where the formation of a double top pattern showing its features in the above chart, which has negative targets reaching 1.0995 then 1.0950 .

Therefore, the bearish bias is likely for today, noting that the rally up and breaching 1.1105 will stop the expected decline and lead the price to regain its bullish path again.

Expected trading range for today is between 1.0950 support and 1.1120 resistance.

Expected trend for today: Bearish.