The single currency fluctuated in a narrow, bullish range during the Asian session to see its rebound to the second session since October 16 against the dollar on the eve of developments and economic data expected on Friday by the euro zone economies and the US economy, the largest economy in the world, which includes FOMC members talk.
At 05:34 am GMT, the EURUSD rose 0.01% to 1.1051 levels compared to the opening at 1.1050, after the pair reached its highest level during the session at 1.1054, while the pair achieved the lowest at 1.1046.
Markets are currently looking ahead to the euro zone's largest economy, Germany, to reveal the current account reading, which could reflect a widening surplus to 19.1 billion euros from 16.9 billion euros in August, coinciding with the release of the trade balance which may also show the widening of the surplus to 19.3 billion euros against 18.1 billion euros in August, amid expectations of higher exports and steady imports at zero levels in September.
This comes before the second largest economy in the Eurozone, which is expected to show a 0.4% rise in industrial production compared to a decline of 0.9% in August. The preliminary reading of the private sector payroll index also showed France accelerated growth to 0.3% from 0.2% in the second quarter.
This comes in conjunction with the meetings of finance ministers of the euro zone Ecofin in Brussels, which is attended by the finance ministers of the EU member states to discuss several financial issues such as mechanisms to support the euro and government funding, and these meetings are closed and are not allowed to transfer the media, but officials are usually with They talk to the media throughout the day.
On the other hand, investors are looking forward to the outcome of the FOMC member and the Chairman of the Federal Reserve Bank of New York, John Williams, about the weaknesses in the global financial system during a dinner in New York, and that comes before we see another Fed committee member, the Deputy Governor of the Federal Reserve. Concluding Remarks of the San Francisco Fed Research Conference.
Investors are also awaiting the US economy's final wholesale inventories figure, which could show a 0.3% decline, unchanged from the preliminary September reading and a 0.2% rise in August, coinciding with the release of the University of Michigan's preliminary reading of confidence. Consumers may reflect an expansion to 96.0 vs. 95.5 last October.
EURUSD has confirmed the breach of 1.1065 after closing the daily candlestick below it, activating the negative effect of the double top pattern which appears in the picture, waiting for further decline in the coming sessions, where our main targets are at 1.0995 then 1.0950.
Therefore, the bearish trend will remain favored for today, supported by negative pressure formed by SMA 50, noting that the continuation of the bearish wave requires stability below 1.1065 and 1.1105 levels.
Expected trading range for today is between 1.0950 support and 1.1120 resistance.
Expected trend for today: Bearish.