EURUSD analysis 08.06.2020

The euro fluctuated in a narrow range slanting back down during the Asian session to witness its rebound from above since March 10 against the US dollar on the eve of developments and economic data expected on Monday by the euro zone economies, which includes the certificate of the European Central Bank Governor Christine Lagarde before the Affairs Committee Economic and monetary in the European Parliament via satellite and amid the scarcity of economic data on the US economy early this week, which carries with it the meeting of the Federal Open Market Committee.

At 05:53 am GMT, the euro against the US dollar fell 0.03% to 1.12.87 levels, compared to the opening levels at 1.1290, after the pair achieved its lowest level during the trading session at 1.1283, while achieving the highest at 1.1320.

Markets are looking for Germany, the euro zone’s largest economy, to release the Industrial Production Index reading, which may reflect a widening decline to 16.0% compared to 9.2% in March, before seeing the Eurozone economies as a whole release of the Sentix index of consumer confidence, which shows contraction shrinking to 22.0 compared to 41.8 last May, before we witness the testimony of the European Central Governor Christine Lagarde before the European Parliament.

On the other hand, the markets are looking for tomorrow, Tuesday, for the launching of the activities of the Federal Open Market Committee meeting that will be held tomorrow and after tomorrow, Wednesday, via satellites in Washington, through which the short-term benchmark interest rates for the second meeting are expected to remain between zero and 0.25% in conjunction With the disclosure of the expectations of members of the Committee to the rates of growth, inflation and unemployment in addition to the future interest rates for the next three years.

Up to the press conference to be held by Federal Reserve Governor Jerome Powell on Wednesday, exactly half an hour after the FOMC meeting ended, to comment on the decisions of the Federal Committee, which recently adopted many stimulus programs until the economy showed signs of recovery, led by the Treasury bond purchase program at $ 500 One billion monthly and mortgage bonds, at least $ 200 a month.

Technical analysis

The euro against the dollar ended trading last Friday at 1.1295, and is now fluctuating around it, noting that the stochastic starts to cross positively now, waiting for the price stimulus to resume the expected bullish direction for the coming period, whose next target is located at 1.1418.

SMA 50 continues to support the price from below, to keep our expectations for the bullish direction in the intraday and short term unless it is confirmed that the level of 1.1295 remains intact with a daily closing below it.

The expected trading range for today is between 1.1220 support and 1.1390 ​​resistance.

Expected trend for today: bullish.