The single currency, the euro, fluctuated in a narrow, upward range, during the Asian session, to witness its rebound for the fifth consecutive session from the lowest since August 12 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 meeting of the Federal Open Market Committee in Washington.
At 06:39 AM GMT, the euro pair rose against the US dollar by 0.24% to 1.1894 levels, compared to the opening levels at 1.1866, after the pair achieved its highest level during the session's trading at 1.1899, while it reached its lowest level at 1.1859.
The markets are looking for France, the second largest economy in the euro area, to reveal inflation data, with the release of the final reading of the consumer price index, which may confirm a contraction of 0.1% during August and compared to a growth of 0.4% in July, and this comes before we see a bigger Germany. Eurozone economies and the economies of the region as a whole revealed a reading of the ZEW Economic Sentiment Index, which may show a contraction of the expansion to the value of 69.7 and 63.0, compared to 71.5 and 64.0 in July.
On the other hand, investors are currently awaiting the American economy for the release of the import price index reading, which may indicate a slowdown in the pace of growth to 0.5% compared to 0.7% in the previous reading for July, while the annual reading of the same index may reflect a contraction of the decline to 1.0% compared to 3.3. This comes in conjunction with the release of the New York industrial index, which may reflect an expansion of 6.2%, compared to 3.7 in August.
This comes before we witness by the largest industrial country in the world the disclosure of industrial sector data with the release of the Industrial Production Index, which may reflect a slowdown in the pace of growth to 1.2% compared to 3.0% in the previous reading for July, while the reading of the utilization rate index may clarify Energy growth accelerated, to 71.7%, from 70.6% in July.
Up to the start of the meeting of the Federal Open Market Committee September 15-16 via satellite, during which the short-term reference rates for the fifth meeting in a row are expected to remain at between zero and 0.25%, and to reveal the expectations of the members of the Federal Commission for rates Growth, inflation and unemployment as well as the future of interest rates for the next three years.
This comes before we witness tomorrow the press conference of Fed Governor Jerome Powell, which he will hold half an hour after the end of the meeting to comment on the decisions of the committee that previously adopted many stimulus programs to support the economy in the face of the repercussions of the Corona pandemic, and it is mentioned that Powell stated on the sidelines of the Jackson meetings Hall has adopted the Federal Reserve's new inflation policy, targeting average inflation 2% above for some time.
The EURUSD pair ended yesterday's trading positively, and starts today with an additional rise to move above the main ascending channel's support, which supports the chances of resuming the main bullish trend and stopping the bearish corrective scenario suggested in our recent reports, on its way to achieving positive targets that start at 1.2011 mainly.
Thus, the bullish bias will be likely during the upcoming sessions, and a breach of 1.1917 will facilitate the price's task in achieving the awaited targets, bearing in mind that the continuation of the bullish wave requires stability above 1.1840.
The expected trading range for today is between 1.1800 support and 1.1980 resistance.
The expected general trend for today: Bullish.