EURUSD analysis 27.03.2020

The single currency, the euro, rose during the Asian session to witness its bounce for the fifth consecutive session from the lowest since April 21, 2017 against the US dollar, amid the scarcity of economic data by the economies of the euro area and on the cusp of developments and economic data expected on Friday by the American economy, which includes a congressional vote On the stimulus package, which is the largest in US history.

At exactly 05:27 am GMT, the euro pair rose against the US dollar by 0.26% to 1.1061 levels compared to the opening levels at 1.1032 after the pair achieved its highest level during the trading session at 1.1087, while achieving the lowest at 1.1023.

Investors are currently awaiting by the US economy the disclosure of personal spending and income data, which may reflect the stability of personal spending growth at 0.2%, little changed from the previous reading last January, and the slowdown in personal income growth to 0.4% compared to 0.6% in January / January, while a reading of the core personal consumption expenditures index may show that growth accelerated to 0.2% compared to 0.1% in January.

This comes before the disclosure of the final reading of the University of Michigan's index of consumer confidence, which may show a widening contraction to 90.0 compared to 95.9 in the preliminary reading of the previous month and 95.9 last February. Otherwise, we followed the Senate's unanimous approval of the stimulus package, which is estimated About $ 2 trillion to support the US economy in the face of the Corona virus, and the package is expected to be passed in the House later today.

Technical analysis

The euro against the dollar succeeded in achieving our second expected target at 1.1067, and attempts are being made to breach it, which supports the chances of the bullish corrective wave extending, on its way to visit the 1.1170 level, which represents the 61.8% Fibonacci level of the decline from 1.1498 to 1.0637.

Thus, we will continue to favor the bullish bias for the upcoming period, supported by the move above SMA 50, indicating that stability above 1.0966 is important to achieve the awaited targets.

The expected trading range for today is between 1.0966 support and 1.1170 resistance.

Expected trend for today: bullish.