EUR analysis 10.03.2020

The single currency euro fell during the Asian session to witness its bounce for the second consecutive session from the top since late January of 2019 against the US dollar on the cusp of developments and economic data expected today by the economies of the euro area and amid the scarcity of economic data at the beginning of this week from Before the American economy, the largest economy in the world.

At 05:39 am GMT, the euro pair fell against the US dollar by 0.90% to 1.1347 levels compared to the opening levels at 1.1450 after the pair achieved its lowest level during the trading session at 1.1338, while achieving the highest at 1.1460.

Currently, France is looking to the second largest economy in the euro area for the release of the industrial production reading, which may reflect a rise of 1.8% compared to a decline of 2.8% in the previous reading last December, before we witness the disclosure of the same reading by Italy, the third largest economy in the region. It may also explain a 1.6% rise versus a 2.7% decline in December.

This comes before we witness the release of the end reading of the change in employment for the euro area as a whole, which may reflect stability at 0.3%, little change from the initial reading for the fourth quarter and 0.1% in the last third quarter, in conjunction with the disclosure of the seasonally adjusted final reading of the region's GDP Which may reflect the stability of the expansion at 0.1%, little change from the initial reading, compared to 0.1% the previous reading for the third quarter.

The annual reading of the euro area GDP as a whole may also show stability growth at 0.9%, little changed from the previous initial reading and compared to 1.2% in the previous annual reading for the third quarter, otherwise, we followed yesterday the European Commission President Ursula von der Line expressed the desire of the Union The European side has to maintain strong relations with Britain, adding that Britain must think seriously and abide by the union's unified market laws if it wants to reach it.

Otherwise, yesterday we followed US President Donald Trump's press conference on Corona Virus in Washington through which he noted that his administration will discuss a possible salary tax cut with the Congress and that there will be "major" economic announcements Tuesday, and in the same context, Italy added restrictions Travel to the closed northern region. In another context, US Treasury Secretary Stephen Mnuchin has rejected comparisons of the current situation with the financial crisis.

We would like to point out, because the Director-General of the World Health Organization noted yesterday that the risk of the Corona virus turning into a global pandemic has become a reality, although he expressed that despite this it is still possible to contain the spread of this dangerous virus, explaining that it is strategic that must focus on containing and stopping the spread of the virus And adding that he is optimistic about the strong measures taken by Italy and hopes for positive results of these measures.

Technical analysis

The EURUSD pair finds it difficult to surpass the 1.1457 level, which represents the 38.2% Fibonacci retracement level for the entire drop measured from 1.2555 to 1.0778, to make some bearish correction for the recent bullish wave, affected by the stochastic negativity.

Until now, the overall positive scenario remains valid for the coming period unless the 1.1325 level is broken and stability below it, as breaking this level will press the price to make more bearish correction, while a break of 1.1457 represents the key to the rally towards 1.1666 as the next main station.

The expected trading range for today is between 1.1300 support and 1.1470 resistance.

Expected trend for today: bullish.