EURUSD analysis 28.05.2020

The euro currency fluctuated in a narrow range tilted to the upside during the Asian session to witness its highest since early April against the US dollar on the threshold of developments and economic data expected Thursday by the economies of the euro area and the US economy the largest economy in the world and in the shadows of market pricing to reopen many It is one of the world economies and hopes for a vaccine for the Coronavirus.

At 05:06 am GMT, the euro pair rose against the US dollar by 0.02% to 1.1008 levels, compared to the opening levels at 1.1006 after the pair achieved its highest level in two months at 1.0953, while achieving the lowest during the trading session at 1.1004.

The markets are looking to the largest eurozone economies, Germany, to disclose inflation data with the release of the first reading of the consumer price index, which may reflect a slowdown in growth to 0.1% compared to 0.4% last April, before we witnessed by Spain, the fourth-largest economy in the region. Also, the annual reading of the same index, which may reflect the widening contraction to 1.0% compared to 0.7% in April.

On the other hand, investors are currently awaiting by the US economy the disclosure of the second reading of the GDP index, which may confirm the contraction of the largest economy in the world by 4.8% during the first quarter, little changed from the previous initial reading and against a growth of 2.1% in the fourth quarter, while The second reading of the same price-measured index may show the stability of growth at 1.3%, little changed from the first reading and the previous reading for the previous quarter.

This comes in conjunction with the disclosure of the reading of the durable goods orders index, which represents about half of consumer spending, which represents more than two-thirds of the gross domestic product in the United States of America, which may reflect the widening of the decline to 19.0% compared to 14.7% last March, as may appear The substantial reading of the same index extended the decline to 14.8% compared to 0.4% in March.

This also comes in conjunction with the issuance of the aid claims index for the past week on May 22, which may reflect a decline of 338 thousand applications to 2,100 thousand applications compared to 2,438 thousand requests in the previous reading, while the reading of the continuing benefit requests for the past week may appear in 15 From this month, an increase of 677 thousand requests to 25,750 thousand requests compared to 25,073 thousand requests.

This comes before we witness the disclosure of housing market data with the release of existing home sales, which may show a decline in decline to 15.0% compared to 20.8% in March, leading to the participation of FOMC members and New York Fed Chairman John Williams in a hypothetical discussion. At Stony Brook University Business School on Long Island.

Technical analysis

The EURUSD pair confirmed the breach of the 1.0966 level after the daily candle closed above it, to activate the bullish trend scenario on the intraday basis, opening the way for a visit to the 1.1067 level as a next main station.

Thus, the bullish bias will be expected for today, supported by the EMA50 that carries the price from below, noting that the continuation of the suggested bullish trend requires stability above 1.0966.

The expected trading range for today is between 1.0950 support and 1.1110 resistance.

Expected trend for today: bullish.