EURUSD analysis 21.05.2020

The single currency fluctuated the euro in a narrow range slanting back down during the Asian session to witness its bounce for the second session from its top since the beginning of this month when it tested its highest since early April last against the US dollar amid the day of the rise in Germany and France on Thursday and at the doorstep Economic developments and data expected by the US economy, which includes the speech of members of the Federal Open Market Committee.

At exactly 04:40 am GMT, the euro pair fell against the US dollar by 0.15% to 1.0963 levels, compared to the opening levels at 1.0980 after the pair achieved its lowest level during the trading session at 1.0957, while achieving the highest at 1.0983.

The markets are currently awaiting for the French economy, the second-largest economy in the eurozone, and the German economy, the largest in the euro area, in addition to the economies of the region as a whole. The first reading of the Markit index for industrial and service purchasing managers for the current month, which may reflect the shrinking contraction of the service and industrial sector in France and Germany in addition to The economies of the region as a whole.

On the other hand, investors are currently awaiting by the US economy the reading of the aid requests index for the past week on May 15, which may reflect a decline of 581 thousand applications to 2,400 thousand applications compared to 2,981 thousand requests in the previous reading, while the reading of continuous subsidy applications may appear Last week, on the eighth of this month, an increase of 1,932 thousand requests to 24,765 thousand requests compared to 22,833 thousand requests.

This comes in conjunction with the disclosure by the largest industrialized country in the world of industrial sector data, with the release of the Philadelphia Industrial Index reading, which may reflect the contraction to 40.0 compared to 56.6 in April, and before we witness the disclosure of the initial reading of the Markit industrial PMI For the United States, which may reflect the contraction shrinkage to 39.3 compared to 36.1 in April.

It also revealed the initial reading of the Services PMI that may reflect the contraction in value to 32.6 compared to 26.7 in April, before the release of the leading indicators, which may explain the decline in the decline to 5.5% compared to 6.7% last March, in conjunction with The release of the Existing Home Sales Index, which may explain the widening decline to 18.9% to 4.31 million homes compared to 8.5% at 5.27 million homes in April.

All the way to FBI members ’satellite talk, New York Fed President John Williams at the Greater Rochter Chamber of Commerce and Federal Reserve Governor Richard Clarida’s view of the US economic outlook and monetary policy at the New York Business Economics Association, before we witness the introduction of the Fed’s governor Jerome Powell introductory remarks about the Coronavirus at a federalist's listening event.

This comes hours after the Federal Reserve revealed on Wednesday the minutes of the Federal Open Market Committee meeting held on April 28-29, in which it decided to stabilize interest on federal funds at zero levels between zero and 0.25%, which came Consistent with expectations at the time, amid stressing the way forward in using all tools to support the American economy in these difficult times.

Technical analysis

The euro against the dollar pair pierce the breach of the 1.0966 level after the daily candle closed above it, which leads the price to resume the bullish wave that started from the 1.0775 areas, on its way to visit the 1.1067 level, which represents the next main station.

Thus, a bullish bias will be favored for today, supported by moving above SMA 50, taking into consideration that breaking 1.0966 and trading below it again will put the price under negative pressure to head towards 1.0840 initially.

The expected trading range for today is between 1.0900 support and 1.1070 resistance.

Expected trend for today: bullish.