EUR analysis 21.02.2020

The euro currency fluctuated in a narrow range slanting upward during the Asian session to witness its bounce for the second session from the lowest since April 2017, while it is still facing its third consecutive weekly losses against the US dollar on the cusp of developments and economic data expected on Friday by the economies The euro area and the US economy are the largest in the world and include recent members of the Federal Open Market Committee.

At 05:31 am GMT, the euro against the US dollar rose 0.08% to 1.0794 levels compared to the opening levels at 1.0785, which is the lowest level for the husband during the trading session, while the pair achieved its highest level during the trading session at 1.0795.

Currently, markets are looking for both the French and German economies and the economies of the region as a whole. The first reading of the Markit index of industrial and service purchasing managers for the current month, which may reflect the breadth of the service sector and the shrinking of the breadth of industry in France, the shrinking of the services sector and the shrinking of the industrial sector in Germany and the economies of the region as a whole .

This comes before we witness the disclosure of inflation data for the eurozone economies as a whole with the release of the annual final reading of the consumer price index, which may reflect the stability of growth at 1.4%, little changed from the initial reading for January and 1.3% in the previous reading for the first month of Kaun Last December, as the substantial annual reading of the same index may show, the growth rate is at 1.1%, also without significant change from the initial reading and against 1.3%.

On the other hand, it is expected that the Federal Open Market Committee member and Dallas Fed President Robert Kaplan will deliver the opening speech at a conference hosted by the Dallas Fed, before we witness the disclosure of the initial reading of the Markit manufacturing PMI for the United States, which may reflect the stability of The breadth was at 53.3, little changed from the previous reading in January.

This also comes in conjunction with the disclosure of the initial reading of the Markit Services PMI for America, which may show a shrinkage in value to 51.5 compared to 51.9 in the previous reading in January, and before we witness the disclosure of housing market data with the release of the Home Sales Index The list, which could show a decline of 1.7% to 5.46 million homes, compared to a rise of 3.6% at 5.54 million homes in December.

Up to the participation of two other members of the Federal Committee at the US Monetary Policy Forum 2020 in New York, each of the Deputy Governor of the Federal Reserve Bank of Elle Brenard, who is scheduled to participate in a seminar on monetary policy for the next recession, and we are witnessing the participation of another Deputy Governor of the Federal Reserve, Richard Clararda is in another panel discussion entitled "Hall of Mirrors: Feedback between Monetary Policy and Financial Markets".

Technical analysis

The EURUSD pair did not show any strong movement in the previous sessions, to continue moving within a stable stable range below the 1.0800 barrier, and therefore, there is no change in the scenario of the bearish trend that depends on stability below 1.0860, which is supported by the negative pressure formed by the EMA50, with Remember that our main awaited targets start at 1.0760 then 1.0680.

The expected trading range for today is between 1.0700 support and 1.0860 resistance.

Expected trend for today: bearish.