EURUSD analysis 02.06.2020

The single currency fluctuated the euro in a narrow range slanting back down during the Asian session to witness its bounce for the second session from the top since March 17 against the US dollar on the cusp of developments and economic data expected today by the economies of the euro area and amid the scarcity of economic data by the economy, The American is the largest economy in the world.

At 05:54 am GMT, the euro against the US dollar fell 0.03% to 1.1133 levels, compared to the opening levels at 1.1136 after the pair achieved its lowest level during the trading session at 1.1119, while achieving the highest at 1.1139.

French markets, the second largest economy in the eurozone, are looking to France for the release of the Treasury budget for May before we witness by Spain, the fourth largest economy in the region, the release of the change in unemployment, which may show a rise of 230.3 thousand compared to a rise of 282.9 thousand in April. The past and this coincides with the National Day in Italy, the third largest economy in the euro area.

In another context, markets assessed the possibilities of the US military deploying in the United States to suppress social strikes and violent demonstrations in cities over the killing of George Floyd of African descent by the police, after the curfew failed to contain massive protests that included violence and looting with demonstrators taking to the streets after weeks Closings during the Corona pandemic, which has caused millions to lose their jobs.

It is worth noting that these expanded strikes taking place in America have strengthened concern about the coronary virus outbreak more broadly among these human groupings and restored fears about the chances of recovery for the economy that is just emerging from the Great Depression in the thirties of the last century. American, while describing them as weak and that they must take more stringent measures in dealing with the protests.

Technical analysis

The euro against the dollar fluctuates around the level of 1.1125, and needs a strong positive incentive that supports the chances of resuming the expected bullish direction for the coming period, which aims to test the 1.1170 level initially.

Overall, we continue to favor the bullish trend for the upcoming period with price stability above 1.1067, supported by the EMA50 that carries the price from below, noting that breaching the target level will extend the upside wave to reach 1.1295 as the next main station.

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

Expected trend for today: bullish.