EURUSD analysis 07.04.2020

The single currency, the euro, rose during the Asian session to witness its rebound to the second session from the lowest since March 25 against the US dollar on the cusp of developments and economic data expected today Tuesday by the economies of the euro area, which includes the activities of the Eurogroup meetings in Brussels and on the cusp of developments and economic data expected Today, Tuesday, by the US economy, the largest economy in the world.

At exactly 05:47 AM GMT, the euro pair rose against the US dollar by 0.39% to 1.0839 levels compared to the opening levels at 1.0793 after the pair achieved its highest level during the trading session at 1.0840, while achieving the lowest at 1.0784.

Markets by Germany, the euro zone's largest economy, are looking for a seasonally adjusted reading of the industrial production index, which may reflect a 0.7% decline against a rise of 3.0% in January, while the annual reading of the same indicator may show a widening decline to 3.0% compared to 1.3%. Before we saw about France the second economy in the region, the trade balance reading showed that the deficit narrowed to 5.1 billion euros, compared to 5.9 billion euros in January.

Up to the release of the retail sales reading for Italy, the third largest economy in the euro area, which may explain a 0.4% decline against stability at zero levels in January, and this comes in conjunction with the activities of the euro group meetings attended by the finance ministers of the member states in the region, Commissioner of Economic and Monetary Affairs And the European Central Governor, which discusses several financial issues such as mechanisms to support the euro and government funding.

On the other hand, investors are currently awaiting by the US economy the disclosure of labor market data with the release of a job reading and job turnover that may reflect a decrease to 6.55 million compared to 6.96 million in January, and that comes before we witness the release of the consumer credit reading That may show accelerated growth to $ 13.9 billion, compared to $ 12.0 billion in January.

It is noteworthy that US President Donald Trump recently warned that the coming period is "painful" for America, after he announced earlier last month that the quarantine would be extended in the United States until the end of this April to limit the spread of the Corona virus, according to the latest figures issued by The organization has increased the number of cases infected with the virus to nearly 1,215 thousand and 67,841 people were killed in 211 countries

Technical analysis

The euro against the dollar continues to fluctuate in a sideways path, confined between the levels of 1.0775 and 1.0840, and begins today with an upward tendency to approach the mentioned resistance test, noting that the price needs to stabilize below this level to keep the downtrend scenario effective for the coming period, which targets the areas of 1.0700 Then 1.0640 as the next negative stops.

SMA 50 continues to support the suggested bearish wave, noting that a breach of 1.0840 will push the price for intraday gains, whose targets begin by testing the 1.0966 level.

The expected trading range for today is between 1.0700 support and 1.0900 resistance

Expected trend for today: bearish