EURUSD analysis 01.06.2020

The single currency fluctuated the euro in a narrow range slashing up during the Asian session to witness its stability near the top in more than two months against the US dollar on the cusp of developments and economic data expected on Monday by the economies of the euro area and the US economy the largest economy in the world.

At 05:21 am GMT, the euro pair rose against the US dollar by 0.27% to 1.1135 levels, compared to the opening levels at 1.1105 after the pair achieved its highest level during the trading session at 1.1140, while it achieved the lowest at 1.1094, knowing that The pair started the trading session on an upward price gap after it concluded the trading for the first half of 2020 at 1.1101.

The markets are looking for by Spain, the fourth largest economy in the region, to publish the manufacturing PMI reading, which may reflect the contraction in contraction to 38.5 compared to 30.8 last April, before we witness from Italy the third largest economy in the region, revealing the reading of the index itself, which may also explain Deflation narrowed to 35.5 compared to 31.1 in April, and before the final reading of the manufacturing PMI for France, the second largest euro area economy, which may reflect the stability of deflation at 40.3 compared to 31.5 in April.

Up to the final reading of the Manufacturing PMI for Germany and the economies of the eurozone as a whole, which may explain the stability of the contraction at 36.8 in Germany and 34.5 in April, and also the stability of the contraction at 39.5 in the region as a whole and 33.4, and this comes in conjunction with Monday's holidays in France Germany, hours before the National Day holiday in Italy tomorrow, Tuesday.

On the other hand, markets are looking to reveal the final reading of the manufacturing PMI by Markit for the United States, which may reflect the stability of the contraction at $ 39.8, little changed from the initial reading of last month and compared to the contraction at 36.1 in April, before we witness By the US economy, the construction spending index showed a 6.5% decline compared to a 0.9% rise in March.

This comes in conjunction with the disclosure also by the largest industrialized country in the world about the reading of the Institute of Industrial Supply index, which may show contraction shrinkage to 43.5 compared to 41.5 in April, as the reading of the Institute of Industrial Supply measured in prices may indicate shrinkage of deflation to its value 40.0 vs. 35.3, and we would like to point out, because the reading issuance at a value of 50 or higher reflects amplitude, while its issuance less than 50 indicates contraction.

Otherwise, during the past weekend we followed violent protests taking place in some cities in the United States with the curfew failing to stop confrontations between activists and law enforcement forces, as protesters took to the streets after weeks of closures during the Coronavirus pandemic, which caused the loss of millions For their jobs and especially heavier on minority communities in America.

Technical analysis

The euro against the dollar pair opens today's trading with a noticeable increase after approaching the level of 1.1067 in the previous sessions, to approach our waited target at 1.1170, and we notice that the stochastic indicator provides a positive crossover signal that supports the chances of achieving a further rise to penetrate the target level and open the way for achieving more goals on Short-term.

Consequently, we will continue to favor the bullish trend for the next period unless we witness a clear breakout and stability below 1.1067.

The expected trading range for today is between 1.1070 support and 1.1230 resistance.

Expected trend for today: bullish.