EUR analysis 02.03.2020

The euro currency fluctuated in a narrow range slanting up during the Asian session to witness its bounce to the sixth session in eight sessions from the lowest since mid-April 2017, explaining the highest since February 3, when it tested the highest since January 23 January against the US dollar on the cusp of developments and economic data expected on Monday by the economies of the euro area and the US economy.

At exactly 6:18 am GMT, the euro pair rose against the US dollar by 0.16% to 1.1044 levels compared to the opening levels at 1.1007 after the pair achieved its highest level in a month at 1.1074, while achieving the lowest during the trading session at 1.1003.

The markets are currently looking to reveal the data of the industrial sector from Spain, the fourth largest economy in the euro area, with the release of the Manufacturing Purchasing Managers Index, which may reflect the contraction in contraction to 48.9 compared to 48.5 in January, before we witness the disclosure of the same indicator reading for Italy The region's third largest economy, which may reflect a widening contraction to 48.0 compared to 48.9 in January.

This comes before we witness the release of the final reading of the manufacturing PMI for France, the second largest euro area economy, and Germany is the largest economy in the region in addition to the eurozone economies as a whole, which may reflect the stability of the contraction at 49.7 in France, compared to a expansion at 51.1 in January, The contraction stabilized at 47.8 in Germany versus 45.3, and also the contraction stability at 49.1 in the region as a whole compared to 47.9.

On the other hand, investors are currently awaiting by the US economy the disclosure of the final reading of the manufacturing PMI by Markit about the United States, which may reflect the stability of the expansion at a value of 50.8, little changed from the initial reading of last month and compared to 51.9 in December, And that is before we witness the release of the construction spending index, which shows a 0.6% increase compared to a 0.2% decline last November.

This comes in conjunction with the disclosure also by the largest industrialized country in the world about the reading of the Institute of Industrial Supply index, which may show a shrinkage of amplitude to 50.5 compared to 50.9 in December, as the reading of the Institute of Industrial Supply measured in prices may show a shrinkage of breadth to what Its value is 51.2 compared to 53.3 in December.

Technical analysis

The euro against the dollar achieved a new rise to touch the level of 1.1063 and settles there, and the stochastic indicator provides a positive crossover now that supports the opportunities to breach the mentioned level to open the way to achieving more intraday gains, noting that the next station reaches 1.1130.

Therefore, the bullish bias will remain likely during the upcoming sessions, taking into consideration that failure to achieve the required breach and breaching the 1.1008 level will stop the expected rise and press the price to return to the falling path again.

The expected trading range for today is between 1.0980 support and 1.1130 resistance.

Expected trend for today: bullish.