EURUSD analysis 24.04.2020

The single currency fluctuated the euro in a narrow range slanting back down during the Asian session to witness its rebound to the seventh session in eight sessions from the top since early April and to prepare for the second consecutive weekly losses against the US dollar on the cusp of developments and economic data expected Friday by the largest The economies of the euro area, Germany, and the American economy, the largest in the world

At 05:34 am GMT, the euro against the US dollar fell 0.08% to 1.0768 levels, compared to the opening levels at 1.0777, after the pair achieved its lowest level during the trading session at 1.0761, while achieving the highest at 1.0784.

The markets are looking to Germany to reveal the IFO reading of the business climate, which may show a widening contraction to 79.8 compared to 86.1 last March. Otherwise, we followed yesterday the report that touched on the fact that the European Central Bank Governor Christine Lagarde informed the European Union leaders that an outbreak The Coronavirus may cause extensive losses to the European economy this year and it expects a contraction of between 5% and 15% in 2020.

On the other hand, investors are currently awaiting the US economy to disclose the reading of the durable goods orders index, which represents about half of consumer spending, which represents more than two-thirds of the gross domestic product in the United States, which may reflect a 12.0% decline compared to a rise of 1.2% in February In the past, while a substantial reading of the same indicator may show a widening decline to 6.1% compared to 0.6% in February.

This comes before we witness the revelation of the final reading of the University of Michigan's index of consumer confidence, which may show a shrinkage in the amplitude of 67.8 compared to 71.0 in the previous reading of the previous month and 89.1 in March, otherwise, we followed yesterday the approval of the House of Representatives by an overwhelming majority on The stimulus package to support small companies and medical centers, which is estimated at $ 484 billion, to face the consequences of the outbreak of the Coronavirus.

We would like to point out that the bill was passed last Tuesday in the Senate amid the polarity of the American policy, both the ruling Republican Party with the majority of the Senate and the Democratic Party with the majority of the House of Representatives, to provide financing for small companies and support the largest economy in the world in the face of the consequences of the virus outbreak Taji and US President Donald Trump is expected to sign the bill later.

It is reported that US President Trump recently announced his administration's plan to gradually restart and operate the American economy, indicating that the global medical crisis may subside later, while its economic consequences remain, and according to the latest figures issued by the World Health Organization, the number of cases infected with the Coronavirus has increased to almost 2.55 million, 175,825 people were killed in 213 countries.

Technical analysis

The EURUSD pair is showing a more bearish tendency to gradually approach our first waited target at 1.0700 and continues to move inside the bearish channel that appears on the chart, which supports the chances of the descending wave extending to 1.0640 which represents our next main station.

Consequently, the downside trend will remain valid and likely during the upcoming sessions with the support of SMA 50, indicating that stability below 1.0840 is important to achieve the proposed targets.

The expected trading range for today is between 1.0640 support and 1.0840 resistance.

Expected trend for today: bearish.