EURUSD analysis 06.05.2020

The single currency fluctuated the euro in a narrow range slanting back down during the Asian session to witness its bounce to the third session from its top since the beginning of last month against the US dollar on the cusp of developments and economic data expected today Wednesday by the euro area economies, which includes the European Commission's disclosure of its economic forecasts for the spring And on the cusp of developments and economic data by the American economy.

At 05:33 am GMT, the euro against the US dollar fell 0.04% to 1.0836 levels, compared to the opening levels at 1.0840, after the pair achieved its lowest level during the trading session at 1.0832, while achieving the highest at 1.0846.

Markets are looking by Germany, the largest economy in the eurozone, for the release of factory demand reading, which may show a widening decline to 10.0% compared to 1.4% last February, before we witness by Spain, the fourth-largest economy in the region, the disclosure of the Services PMI reading, which Shrinkage might appear widening to 10.0 vs. 23.0 in March.

This comes before we witness from Italy, the third-largest economy in the euro area, the release of the Services PMI reading, which may reflect the widening of the deflation to 9.2 versus 17.4 in March, before revealing the final reading of the same index for France, the second-largest economy in the region and for Germany, which may The contraction expanded to 10.4 and 15.9, unchanged from the previous reading of the previous month and compared to the contraction at 27.4 and 31.7 in March.

Up to the disclosure of the final reading of the services PMI for the euro area as a whole, which may explain the widening contraction to 11.7 unchanged from the initial reading for the past month and against a contraction at 26.4 in March. And that is before we also witness the eurozone economies as a whole the release of the retail sales index, which may show a decline of 11.2% compared to a rise of 0.9% in February.

On the other hand, investors are currently watching by the US economy to disclose preliminary data for the labor market with the release of the index of change in private-sector jobs, which may reflect the loss of 20.5 million jobs compared to the loss of 27 thousand jobs last March, and that comes hours before the disclosure After tomorrow, Friday, the monthly report for jobs except agricultural and unemployment rates in addition to the hourly rate for the month of April.

Technical analysis

The euro against the dollar continues to try to break the level of 1.0840, and it falls under the negative pressure formed by the EMA50, to support our expectations of the continuation of the downtrend during the upcoming sessions, reminding us that our next main target is at 1.0700.

On the other hand, we should pay attention that the bearish bias requires stability below 1.0885, as its breach will push the price to initially test the 1.0966 level before any new attempt to decline.

The expected trading range for today is between 1.0740 support and 1.0900 resistance.

Expected trend for today: bearish.