EUR analysis 21.01.2020

The single currency fluctuated the euro in a narrow range tilted to the upside during the Asian session to witness its rebound for the second consecutive session from its lowest since December 24 against the US dollar on the cusp of developments and economic data expected today by the economies of the euro area amid the scarcity of economic data in Early this week on the US economy and with the aspiration of the launch of the World Economic Forum Davos in Switzerland.

At 05:24 am GMT, the euro pair rose against the US dollar by 0.02% to 1.1097 levels compared to the opening levels at 1.1095, after the pair achieved its highest level during the trading session at 1.1099, while achieving the lowest at 1.1089.

The markets are looking to reveal a statistical reading of the ZEW economic sentiment index for Germany, the largest economies of the eurozone and the eurozone economies as a whole, which may reflect a expansion in Germany and the region as a whole by 15.2 and 10.7 compared to 10.7 and 11.2 respectively in December, This comes in conjunction with the activities of the finance ministers of the euro area Ecovin in Brussels.

Other than that, we followed up earlier this week the approval of French President Emmanuel Macron and his US counterpart Donald Trump not to impose customs duties in their digital tax dispute until at least the end of the year 2020. In another context, European Trade Commissioner Phil Hogan also stated yesterday that the Union The European is still looking into the details of the first phase of the trade agreement between the United States and China.

Technical analysis

The euro against the dollar pair reached the outskirts of the awaited target when supporting the ascending channel, and begins to rebound upwards in a sign of the price trend to try to resume the main bullish trend, supported by the positivity of the stochastic indicator.

Therefore, the bullish bias will be likely for today, and the first goal is to test the 1.1180 level, taking into consideration that the break of 1.1065 will stop the expected rise and put pressure on the price to achieve a further decline in the intraday and short term.

The expected trading range for today is between 1.1040 support and 1.1180 resistance.

Expected trend for today: bullish.