EURUSD analysis 26.05.2020

The single currency fluctuated the euro in a narrow range slashing up during the Asian session against the US dollar on the threshold of developments and economic data expected on Tuesday by the economies of the euro area and the US economy, the largest economy in the world.

At 04:42 am GMT, the euro pair rose against the US dollar by 0.21% to 1.0921 levels, compared to the opening levels at 1.0898, after the pair achieved its highest level during the trading session at 1.0922, while achieving the lowest at 1.0893.

The markets are looking to the largest Eurozone economies, Germany, to unveil a statistical reading of the GFK consumer confidence index for next June, which may reflect the contraction in contraction to 19.1 compared to 23.4 this May, and this comes before we witness the disclosure of the report. The semi-annual review of financial stability by the European Central Bank.

On the other hand, investors are anticipating the US economy to disclose housing market data with the release of the house price index, which may explain the slowdown in growth to 0.6% compared to 0.7% last February, in conjunction with the release of the annual reading of the house price index, which may appear Also, growth slowed to 3.4% from 3.5% in February.

This comes before the release of the new home sales index, which may explain the decline in the decline to 15.4% for 492 thousand homes compared to 21.9% at 627 thousand homes in March, in conjunction with the disclosure of the consumer confidence index reading, which may reflect a widening to 87.1 compared to 86.9 In April, they reached the participation of Federal Reserve Board member and Minneapolis Federal Reserve Chairman Neil Kakkari in a panel discussion on the Corona Virus pandemic.

In another context, we followed yesterday the American company, Novafax announced that it had started its first human study on its experimental vaccine against corona and that it expected preliminary results regarding safety and immune responses in July, which boosted hopes for a vaccine for the virus later this year, and according to another figure issued by the World Health Organization, the number of cases infected with the virus rose to nearly 5.31 million, and 342,070 people died in 216 countries.

Technical analysis

The narrow range dominated the trading of the euro against the dollar yesterday, to continue fluctuating around the EMA50, and therefore, the bearish trend scenario will remain intact as it is unchanged, supported by the negative signal that the stochastic indicator begins to provide, with a reminder that our targets start at 1.0840 and extend to 1.0700 beyond the previous level while achieving it requires stability below 1.0966.

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

Expected trend for today: bearish.