EURUSD analysis 25.05.2020

The single currency fluctuated the euro in a narrow range slanting toward decline, to witness its bounce for the third consecutive session from the top since the beginning of May when it tested the highest since early April against the US dollar on the cusp of developments and economic data expected today Monday by the German economy The largest economies in the euro area and amid the scarcity of economic data earlier this week from the US economy due to the Memorial Day holiday.

At exactly 05:35 am GMT, the euro against the US dollar fell 0.06% to 1.0891 levels, compared to the opening levels at 1.0897, after the pair achieved its lowest level during the trading session at 1.0887, while it achieved the highest at 1.0909, knowing that The pair started the trading session on a falling price gap after it concluded the trading last week at 1.0901 levels.

The markets are looking to Germany to reveal the IFO reading of the business climate, which may show a widening of 78.3 compared to 74.3 last April. Otherwise, we followed last Friday the European Central Bank revealed the minutes of its last meeting, which decided to stay on Interest rates are at zero levels and the marginal lending rate is set at 0.25%, in addition to keeping the deposit interest rate negative -0.50%.

The minutes of the meeting also touched on the fact that the European Central is moving forward on the bond purchase program by 20 billion euros a month in addition to temporary purchases of 120 billion euros, noting that the lending program proved its importance in maintaining the stability of bond markets in the euro area and that the European Central is ready to amend Lending programs and other tools at next June's meeting.

In the same context, the record stated that the measures taken by the European Central provided strong cash liquidity in the markets with warning that the monetary policy alone is not sufficient to face the crisis and that there is a need for financial policies, especially that there are fears that the crisis will continue for an extended period of time that will have an effect On inflation, amid indicating that the region's economic growth is expected to resume after the outbreak of the Corunavirus outbreak.

On the other hand, investors expecting later this week by the US economy to disclose the second reading of the GDP index, which may confirm the contraction of the largest economy in the world by 4.8%, as the previous preliminary reading showed and against a growth of 2.1% in the fourth quarter, while The second reading of the same index, measured in prices, may confirm a growth of 1.3% as well, with little change from what it was in the previous reading for the fourth quarter.

In another context, markets are also awaiting by the end of the week the upcoming talk of Fed Governor Jerome Powell at the Griswold Center for Economic Policy Studies at Princeton University in New Jersey, where he is expected to participate in a hypothetical satellite panel discussion, and we would like to point out that Powell Noah Thursday The past is that the Fed will spare no effort until the US economy recovers from the fallout from the Coronavirus.

Technical analysis

The EURUSD pair is hovering around the EMA50, and we expect the markets to see weak trading today due to the effect of the holiday of some financial markets.

In general, the stability of the price below 1.0966 keeps the downside scenario effective on the intraday basis, awaiting testing the level of 1.0840 as a first major target, noting that breaking this level will extend the descending wave to reach the levels of 1.0700 then 1.0640, while the breach of 1.0966 represents the key to the upside and rush Initially 1.1067.

The expected trading range for today is between 1.0800 support and 1.0966 resistance.

Expected trend for today: bearish.