EURUSD analysis 08.05.2020

The single currency fluctuated the euro in a narrow range tilted to the upside during the Asian session to witness its bounce for the second consecutive session from the lowest since April 24 against the US dollar on the cusp of developments and economic data expected today by the economies of the euro area and the US economy, which includes providing a conservative European Central Bank Christine Lagarde Opening remarks in the electronic version of the State of the Union conference organized by the European University Institute.

At exactly 05:12 am GMT, the euro pair rose against the US dollar by 0.08% to 1.0843 levels, compared to the opening levels at 1.0834, after the pair achieved its highest level during the trading session at 1.0855, while achieving the lowest at 1.0823.

Markets are looking for Germany, the largest economy in the eurozone, to disclose the reading of the current account index for the month of March, in conjunction with the disclosure of the reading of the trade balance index also for Germany, which may show a shrinking surplus to the value of 19.0 billion euros against 21.6 billion euros in February. , And amid expectations of a seasonally adjusted reading of exports and a further decline in the seasonally adjusted reading of imports during March.

Other than that, we followed yesterday the European Central Bank Governor Christine Lagarde expressed concern about the outbreak of a second wave of Coronavirus, and in another context, she also told yesterday German Chancellor Angela Merkel that easing the restrictions of the closure is a major challenge for the German government, while touching that it can The ban is reimposed, if only partially, if coronavirus resumes its spread in Germany.

On the other hand, investors are currently waiting for the US economy to disclose labor market data with the release of the employment change index for sectors other than agriculture, which may reflect the loss of 22 million jobs compared to the loss of 701 thousand jobs last March, while an average index reading may show Hourly income accelerated growth to 0.5% versus 0.4%. This was with the unemployment rate reading showing a rise to 16.0% to 4.4% in March.

This comes, before we also witness by the largest economy in the world, the final reading of the wholesale stocks index, which may reflect the stability of the decline at 1.0% during last February, and according to the latest figures issued by the World Health Organization has increased the number of cases infected with the Coronavirus to nearly 3.68 One million and 254,199 people were killed in 215 countries.

Technical analysis

The euro against the dollar pair shows more bullish tendency to test the resistance 1.0840, which requires attention from the upcoming trading, as a breach of this level followed by a breach of 1.0860 will stop the negative scenario suggested in our recent reports and lead the price to turn towards the rise.

SMA 50 constitutes a continuous negative pressure against the price, while the stochastic indicator loses its positive momentum to enter the overbought areas, which supports the chances of resuming the bearish trend that will remain likely provided the stability is below the above-mentioned levels, noting that we are waiting for a visit to 1.0700 then 1.0640 levels mainly.

The expected trading range for today is between 1.0730 support and 1.0900 resistance

Expected trend for today: bearish.