EURUSD analysis 10.06.2020

The euro currency fluctuated in a narrow range slanting upward during the Asian session to witness its stability near the top of it has three months against the US dollar on the cusp of developments and economic data expected today Wednesday by the French economy and its American economy the largest economy in the world and that includes the activities of the Federal Market Committee meeting Open and upcoming press conference of Federal Reserve Governor Jerome Powell.

At 05:31 am GMT, the euro pair rose against the US dollar by 0.16% to 1.1358 levels, compared to the opening levels at 1.1340 after the pair achieved its highest level during the trading session at 1.1359, while achieving the lowest at 1.1332.

The markets are looking for France, the second largest economy in the eurozone, to disclose data on the industrial sector with the release of the industrial production index, which may reflect the widening decline to 20.0% compared to 16.2% last March. In another context, we followed at the weekend expressed the Minister of Finance French Bruno Lemerre announced that the French government will provide an estimated 15 billion euros in aid to support the pilots' sector against the consequences of healing the Coronavirus.

On the other hand, investors are anticipating the US economy to disclose inflation data with the release of the CPI reading that may show stability at zero levels versus a 0.8% contraction in April, as the fundamental reading of the index may show stability at zero levels versus a 0.4% contraction , And the annual reading of the index may reflect the slowdown in growth to 0.2% versus 0.3%, as the substantial annual reading may show 1.3% versus 1.4%.

This comes in conjunction with the actual meeting of the Federal Committee for the Open Market via satellite in Washington, which is expected to remain on the short-term reference interest rates for the second meeting at between zero and 0.25%, in conjunction with the disclosure of the Federal Committee data and the expectations of the members of the Committee for growth rates Inflation and unemployment as well as the future of interest rates for the next three years.

Up to the press conference to be held by Federal Reserve Governor Jerome Powell half an hour after the FOMC meeting ended to comment on the decisions of the Federal Reserve monetary policy makers who recently adopted several stimulus programs until the economy showed signs of recovery, led by the Treasury bond purchase program At $ 500 billion a month and mortgage bonds at least $ 200 a month.

Technical analysis

The euro against the dollar compensated the losses incurred yesterday, after the strong rise witnessed in the last sessions, to succeed in stabilizing above the level of 1.1295, which leads the price to achieve a more expected rise in the intraday and short term, on the way to head towards 1.1418 which represents our next main station.

Consequently, we will continue to favor the bullish trend for the upcoming period supported by the EMA50, noting that breaching the target level will push the price to 1.1500 directly, while the expected rise will remain valid provided the stability above 1.1295.

The expected trading range for today is between 1.1250 support and 1.1440 resistance

Expected trend for today: bullish