EUR analysis 26.03.2020

The single currency fluctuated the euro in a narrow range slashing up during the Asian session to witness its bounce for the fourth consecutive session from the lowest since April 21, 2017 against the US dollar on the threshold of economic developments and data expected today Thursday by the economies of the euro area and the US economy the largest economy in the world And with investors evaluating the incentive to face the repercussions of spreading the Corona virus globally.

At 05:05 am GMT, the euro pair rose against the US dollar by 0.22% to 1.0906 levels compared to the opening levels at 1.0882, after the pair achieved its highest level during the trading session at 1.0934, while achieving the lowest at 1.0871.

Investors may look to the eurozone economies as a whole to reveal the annual reading of the index of private loans, which may explain the acceleration of growth to 3.8% compared to 3.7% last January, while the annual reading of the M3 money supply may show stable growth at 5.3% During February, this comes in conjunction with the European Central Bank's disclosure of the ECB's monthly report.

On the other hand, investors are currently awaiting by the US economy the disclosure of the GDP reading, which may reflect the stability of the expansion of the largest economy in the world at 2.1% unchanged from the previous initial reading for the fourth and third quarter of the past, as the reading of the same index measured by prices may reflect stability Growth at 1.3%, unchanged from the previous first reading, and against growth of 1.8% in the previous reading for the third quarter.

This comes in conjunction with the issuance of the reading of the benefit requests index for the last week on March 21, which may reflect an increase of 1,367 thousand applications to 1,648 thousand applications compared to 281 thousand requests in the previous weekly reading, as the reading of the continuing benefit requests for the last week may appear on the 14th of This month, an increase of 81 thousand requests to 1,782 thousand requests compared to 1,701 thousand requests in the previous reading.

This also comes in conjunction with the release of the merchandise trade balance index, which may explain the deficit narrowing to $ 64.5 billion compared to $ 65.9 billion in January, and with the disclosure of the initial reading of the wholesale inventory index, which may reflect a decline in the decline to 0.2% compared to 0.4% In January, otherwise, we followed yesterday the White House announcing that it had reached an agreement with Senate leaders on the stimulus package, estimated at $ 2 trillion.

Other than that, yesterday we followed the statements of the Director-General of the World Health Organization, Tidros Adhanum Gebresus, through which he expressed that children are vulnerable to infection with the virus (COVID-19) or what is known in the media as Coronavirus like the rest of the people, explaining that it is the global solidarity to face this serious threat and that The world is preparing for more severe measures to confront the coronavirus.

The Director-General of the organization, Gebrissos, also mentioned that precautionary measures should be taken, such as preventing gatherings and travel in addition to tracking and monitoring infected cases, adding that medical and health personnel, especially in poor countries where the virus is easy to spread, must be protected, according to the latest figures issued by the organization, so the number of cases has increased Infected with the virus to nearly 417,000 and 18,589 people were killed in 196 countries.

Technical analysis

The euro against the dollar managed to confirm the breach of the 1.0840 level after the daily candle closed above it, and today begins with a noticeable bullish tendency to approach our awaited target at 1.0966, which represents the 38.2% Fibonacci retracement level of the measured measurement from 1.1498 to 1.0637, which means that its breach will extend the wave The bullish correction is 1.1067.

The bullish channel continues to organize the intraday trading, which supports the chances of the continuation of the bullish direction during the upcoming sessions, taking into consideration that stability above 1.0840 is required to achieve the suggested positive targets.

The expected trading range for today is between 1.0840 support and 1.1020 resistance.

Expected trend for today: bullish.