EUR analysis 11.03.2020

The single currency rose during the Asian session to witness its rebound to the eleventh session in fifteen sessions from the lowest since mid-April 2017 against the US dollar amid the scarcity of economic data by the eurozone economies and on the cusp of developments and economic data expected today, Wednesday, the US economy, which includes a certificate The US Treasury Secretary on Fiscal Year 2021.

At 05:48 am GMT, the euro pair rose against the US dollar by 0.58% to 1.1346 levels compared to the opening levels at 1.1281, after the pair achieved its highest level during the trading session at 1.1350, while achieving the lowest at 1.1279.

Investors are looking for the US economy to disclose inflation data with the release of the consumer price index, which may reflect stability at zero levels against 0.1% growth in January, while the fundamental reading of the same indicator may show stability at 0.2% during February. The annual reading of the same index may reflect the slowdown in growth to 2.2% versus 2.5%, and the substantial annual reading of the index may show stability at 2.3%.

This comes before we witness the testimony of the US Treasury Secretary on the budget proposed by the administration of the Republican President Donald Trump for the fiscal year 2021 before the Subcommittee on Foreign Operations and Related Programs in Washington, leading to the disclosure of the US Treasury Department about the reading of the federal budget, which may reflect the breadth The deficit amounted to $ 238.1 billion, compared to $ 32.6 billion in January.

It is reported that US President Trump expressed earlier this week that his administration will discuss a possible salary tax cut with the Congress and that there will be "major" economic announcements, and the White House stated that the proposals aim to reduce taxes on workers ’salaries to zero until the end of the year and the possibility of providing material support to those affected by Corona virus, which has killed more than 4 thousand people around the world, according to the latest figures issued by the World Health Organization.

Technical analysis

The euro against the dollar closed yesterday's trading below the 1.1325 level, confirming the start of a bearish correction for the last bullish wave that started from the 1.0778 areas, on its way to visit the 38.2% Fibonacci level of 1.1221.

Therefore, a bearish bias will be favored for today, supported by the current stochastic negativity, bearing in mind that price consolidation above 1.1325 will stop the negative scenario and lead the price to restore the main bullish path, whose first target is at 1.1457.

The expected trading range for today is between 1.1230 support and 1.1400 resistance.

Expected trend for today: bearish temporarily.