EURUSD analysis 11.05.2020

The euro currency fluctuated in a narrow range tilted to the upside during the Asian session to witness its bounce for the third consecutive session from the lowest since April 24 against the US dollar on the cusp of developments and economic data expected on Monday by Italy, the third largest economy in the euro area and amid scarcity Economic data this weekend by the US economy, the largest economy in the world.

At 05:35 am GMT, the euro pair rose against the US dollar by 0.16% to 1.0843 levels, compared to the opening levels at 1.0826, after the pair achieved its highest level during the trading session at 1.0856, while achieving the lowest at 1.0821, with Knowing that the pair started the trading session on a falling price gap after it concluded the trading last week at 1.0839 levels.

Investors are watching the Italian economy for the release of the industrial production, which may explain the decline to 20.0% compared to 1.2% in February. Otherwise, we followed during the weekend reporting to France, Italy and the UK the lowest number of deaths due to the spread The Coronavirus has spread since March, which has boosted investor hopes for the reopening of global economies while easing social divergence measures globally.

On the other hand, yesterday we followed the warning of the US Treasury Secretary Stephen Mnuchen that unemployment rates in his country "may get worse before they improve" and that unemployment rates may have reached 25%, and his statements came hours after the US labor market data showed last Friday the high rates US unemployment rose to nearly seven decades, to 14.7%, with about 20.5 million jobs lost in April due to the outbreak of the Coronavirus.

Technical analysis

The euro against the dollar ended trading last Friday below the level of 1.0840, where SMA 50 managed to stop the recent positive price attempts, which keeps our expectations for the bearish trend in place for the coming period, which targets 1.0700 then 1.0640 levels as the next main stations.

It should be noted that breaching 1.0840 then 1.0860 will stop the suggested decline and lead the price to achieve gains reaching 1.0966 initially.

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

Expected trend for today: bearish