EURUSD analysis 18.05.2020

The single currency fluctuated the euro in a narrow range slashing back down during the Asian session against the US dollar with the aspiration of the German Central Bank to disclose its monthly report and in the wake of the interview that Fed Governor Jerome Powell gave to the program "60 minutes" on "CBS" and on The economic developments and data expected on Monday by the US economy are the largest in the world.

At exactly 05:58 AM GMT, the euro against the US dollar fell 0.02% to 1.0821 levels, compared to the opening levels at 1.0823 after the pair achieved its lowest level during the trading session at 1.0803, while achieving the highest at 1.0827, knowing that The pair started the trading session on an upward price gap after it concluded the trading last week at 1.0820 levels.

We have just followed the warning of Federal Reserve Governor Jerome Powell in the "60 Minutes" program that the economic downturn may continue until late 2021, explaining that his country's economic downturn may reach between 20% and 30% "easily" during the current quarterly quarter with Coronavirus outbreak, adding that he expects "the economy to recover steadily during the second half of this year," as long as America avoids "the second wave of the virus."

Powell noted that "it is very important to avoid this. Because it will be damaging to the economy and also to the confidence of the public," explaining that "assuming there is no second wave of the virus, I think you will see the economy recover steadily during the second half," adding that "in order for the economy to fully recover A vaccine must wait, "Powell also called on US lawmakers to pass more economic incentives and relief aid, while telling him that unemployment rates could peak at 25%.

Otherwise, investors are currently waiting for the US economy to reveal the housing market data with the release of the housing index reading by the National Association of Home Builders, which may reflect a rise to $ 35 compared to 30 last April, and we would like to point out that the Democrats passed last Friday In the House of Representatives a stimulus of $ 3 trillion, but it is not expected that the stimulus will pass the Republican-controlled Senate.

Technical analysis

The EURUSD pair continues to fluctuate between the trend keys which are the support that is now rising to 1.0782 and resistance 1.0840, and therefore, there is no change in our neutral stance until the price is able to breach one of these levels to clearly define the following targets.

We recall that breaching the mentioned support will put the price under additional negative pressure targeting 1.0700 then 1.0640 areas as the next main stations, while breaching the resistance will lead the price to achieve gains reaching 1.0966 in the short 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.