EURUSD analysis 27.05.2020

The single currency fluctuated the euro in a narrow range slanting back down during the Asian session to witness its bounce back to the third session in five sessions from its highest since early May when it tested its highest since early April against the US dollar amid the aspiration of the ECB governor Christine Lagarde Via satellites about the European Central response to the Coronavirus at the European Youth Event 2020 and on the cusp of developments and economic data expected today Wednesday by the US economy, the largest economy in the world.

At 05:07 AM GMT, the euro against the US dollar fell 0.24% to 1.0956 levels, compared to the opening levels at 1.0982, after the pair achieved its lowest level during the trading session at 1.0953, while achieving the highest at 1.0985.

Investors are currently waiting for the US economy, the world's largest industrialized country, to disclose data on the industrial sector, with the release of the Richmond Industrial Index reading, which may reflect a contraction in the contraction of 40 to 53 compared to last April, and that comes before we witness the unveiling of the book Beige What is important is that it is issued two weeks before the FOMC meeting.

Technical analysis

The euro against the dollar ended yesterday's trading above 1.0966, which is a positive signal that supports the price trend to visit the next correction level at 1.1067, but we notice that the price starts today with a noticeable negativity to move below the breached level, supported by the stochastic negativity, to fall under a possible negative pressure that may Press the price to return to the falling path again, especially after recording a low high yesterday.

Therefore, this inconsistency between the technical factors makes us prefer stopping on the neutrality until the price confirms its position regarding the level of 1.0966, as the consolidation above it will push the price to 1.1067 as a next positive target, while failure to hold above it will press the trades to go towards 1.0840 initially.

The expected trading range for today is between 1.0860 support and 1.1060 resistance.

Expected trend for today: neutral.