EURUSD analysis 15.05.2020

The single currency fluctuated the euro in a narrow range tilted to the upside during the Asian session while still preparing for its second weekly losses in a row, on the cusp of developments and economic data expected on Friday by the economies of the euro area, which includes the Eurogroup meetings in Brussels and on the cusp of developments and economic data Expected of the US economy, the largest economy in the world.

At exactly 05:55 AM GMT, the euro pair rose against the US dollar by 0.01% to 1.0806 levels, compared to the opening levels at 1.0805, which is the highest level for the husband during the trading session, while the pair achieved its lowest level during the trading session at 1.0799.

Markets are currently awaiting by the largest Eurozone economies, Germany, to disclose the seasonally adjusted preliminary reading of the first quarter GDP indicator, which may reflect a contraction of 2.2% against stability at zero levels in the fourth quarter, while the yearly non-seasonally adjusted reading of the same indicator may show a contraction 1.6% vs. 0.3% growth in the prior annual reading for the fourth quarter.

This comes in conjunction with the disclosure also from Germany of the producer price index reading, which is a preliminary indication of inflationary pressures, which may show contraction shrinkage to 0.6% compared to 0.8% in March, as the annual reading of the same indicator may show that deflation expanded to 1.9% versus 0.8%, To the release of the final reading of the consumer price index for France, the second-largest economy in the eurozone, which may reflect the stability of growth at 0.1% during April.

In order to reveal the seasonally adjusted initial reading of the euro area gross domestic product index as a whole, which may reflect the contraction stability at 3.8% unchanged from the fourth quarter, as the annual reading of the index may show the contraction stability at 3.3%, in conjunction with the preliminary reading of the change in employment index It fell 0.2% against a rise of 0.3% in the fourth quarter, and the seasonally adjusted reading of the Trade Balance Index showed the surplus narrowed to 17.2 billion euros from 25.8 billion euros in February.

On the other hand, investors are currently awaiting by the US economy the disclosure of the retail sales reading, which represents about half of consumer spending, which represents more than two-thirds of the gross domestic product of the United States, which may reflect the widening decline for the worst ever to 12.0% compared to 8.7% in March March, as the fundamental reading of the same index may reveal that the worst rate ever fell to 8.6% compared to 4.5% in March.

This comes in conjunction with the disclosure of industrial sector data for the largest industrial country in the world with the release of the New York industrial index reading, which may reflect the widening of the contraction to 65.0 compared to 78.2 in April, before the release of the industrial production index, which may reflect the widening of the decline to 11.3 % Versus 5.4% in March, while a reading of the Energy Utilization Index may show a slowdown in growth to 63.9% compared to 72.7% in March.

Markets are also looking to reveal the preliminary reading of the University of Michigan index of consumer confidence, which may show a decrease to 68.0 compared to 71.8 in April, in conjunction with the final reading of the wholesale inventory index showed a decline in the decline to 0.3% compared to 0.4% in February, and the disclosure of market data Work with the release of the employment opportunities and job turnover reading, which may reflect a decrease to 5.77 million compared to 6.88 million in February.

It is reported that Federal Reserve Governor Jerome Powell Noh Wednesday during his pre-prepared speech on economic issues in an online seminar organized by the Peterson Institute for International Economics at the time that "although the economic response was timely and large, appropriately, it may not be the last chapter, Given that the road ahead is very uncertain and subject to great risks. "

Technical analysis

The euro against the dollar ended yesterday's trading above the support at 1.0790 without being able to confirm its break, which keeps the price stuck between the direction keys represented by the mentioned support and the resistance 1.0840, and as we indicated in our recent reports, the price needs to confirm the penetration of one of these levels to determine its next destination in the form of More precisely, which keeps our neutral stance up to now.

We recall that breaking the support will put the price under negative pressure targeting 1.0700 then 1.0640 levels as next stops, while breaching the resistance will lead the price to start new recovery attempts and head towards 1.0966 areas in the near term.

The expected trading range for today is between 1.0700 support and 1.0900 resistance.

Expected trend for today: It depends on the levels mentioned in the report.