EURUSD analysis 12.05.2020

The euro currency fluctuated in a narrow range tilted to the upside during the Asian session to witness its bounce back for the third session in four sessions from the lowest since April 24 against the US dollar and amid the scarcity of economic data by the euro area economies and on the cusp of developments and economic data expected today Tuesday from Before the American economy, which includes the talk of members of the Federal Open Market Committee.

At 05:59 am GMT, the euro pair rose against the US dollar by 0.03% to 1.0810 levels, compared to the opening levels at 1.0807, after the pair achieved its highest level during the trading session at 1.0817, while achieving the lowest at 1.0785.

Investors are waiting for the US economy to disclose inflation data with the release of the CPI reading that may show the contraction widening to 0.7% compared to 0.4% in March, as the fundamental reading of the index may show the expansion of deflation to 0.2% versus 0.1%, and may reflect The annual reading of the index is a slowdown in growth to 0.4% versus 1.5%, and a substantial annual reading may show a slowdown in growth to 1.7% versus 2.1%.

This comes before we witness the speech of members of the Federal Open Market Committee, President of the Federal Reserve Bank of America Patrick Harker about the economic impact of the Coronavirus in the Chamber of Commerce of Delaware in Wilmington, in conjunction with the testimony of the Deputy Governor of the Federal Reserve Randall Carls on supervision and regulation before the Banking Committee of the Council The elders in Washington.

Up to the US Treasury revealed a reading of the federal budget, which may reflect the widening deficit of $ 729.7 billion compared to $ 119.1 billion in March, before we witness the speech of the Federal Open Market Committee member and President of the Cleveland Bank Federal Reserve Loretta Mester about monetary policy And economic outlook at the Association of Certified Financial Analysts in Chicago, via satellite.

Technical analysis

The euro against the dollar trades steady around the 1.0800 barrier, and it is under constant negative pressure coming from the EMA50, which supports the continuation of our expectations for the bearish direction in the intraday and short term, which target 1.7000 then 1.0640 levels as the next main stations.

The positivity of the stochastic oscillator may cause some temporary sideways fluctuation before resuming the expected decline, which will remain valid provided that the price maintains its daily closing stability below 1.0840.

The expected trading range for today is between 1.0700 support and 1.0880 resistance.

Expected trend for today: bearish.