EURUSD analysis 20.04.2020

The single currency fluctuated the euro in a narrow range slanting back down during the Asian session to witness its bounce back for the third session in four sessions from the top since early April 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 by the US economy, the largest economy in the world.

At exactly 05:44 AM GMT, the euro against the US dollar fell 0.19% to 1.0854 levels, which is the lowest level for the husband during the trading session, compared to the opening levels at 1.0875, while the pair achieved its highest level during the trading session at 1.0879.

Investors are looking forward to the largest euro-zone economies, Germany, to reveal inflation data with the release of the producer price index, which is an initial indication of inflationary pressures, which may show the widening of the contraction to 0.4% compared to 0.7% last February, as the annual reading of the same index may explain. The contraction widened to 0.8% versus 0.1% in the prior February annual reading.

This comes before we witness about the economies of the eurozone as a whole, the issuance of the seasonally adjusted reading of the current account index, which may reflect the widening of the surplus to 36.3 billion euros against 34.7 billion euros last January, and the issuance of the seasonally adjusted reading of the trade balance also for the region as a whole, which may indicate the expansion The surplus amounted to 19.2 billion euros against 17.3 billion euros in January, leading to the disclosure of the monthly report of the German Central Bank.

Other than that, we followed last weekend, Speaker of the House of Representatives Nancy Pelos and US Treasury Secretary Stephen Mnuchin expressed optimism about a deal to increase funds in the loan program that aims to help small American companies withstand the consequences of the coronary virus outbreaks in the states United recently.

In another context, New York State Governor Andrew Como also stated at the end of last week that his state may have exceeded the high level of death from coronavirus, and states that fewer daily deaths were reported in Italy, Spain and the United Kingdom, according to the latest figures issued by the World Health Organization, the number of cases infected with the Coronavirus rose to nearly 2.25 million, and 152,707 people were killed in 213 countries.

Markets are looking closely now at developments in Gilead Sassensis’s disclosure of its drug that is rumored to be effective in combating coronavirus and can eradicate it, especially that it can be effective in dealing with critical cases. It is reported that US President Donald Trump recently announced his administration’s plan to restart and operate the economy The US gradually, indicating the possibility of a global medical crisis to subside later, while its economic consequences remain.

Technical analysis

The EURUSD pair maintains its stability above 1.0840 and completed the formation of a falling wedge showing its features in the image, which constitutes a positive incentive that we expect to contribute to pushing the price higher during the upcoming sessions, where our next target is located at 1.0966.

Thus, the bullish trend scenario will remain intact and active over the intraday basis, and breaching the target level will push the price to 1.1067 directly, while stability above 1.0840 is an important condition for achieving the suggested targets.

The expected trading range for today is between 1.0800 support and 1.0966 resistance.

Expected trend for today: bullish.