Euro Analysis 17-06-2020

 The single currency fluctuated the euro in a narrow range tilted upward to witness its bounce for the second session in four sessions from the lowest since June 4 against the US dollar on the threshold of developments and economic data expected today by the economies of the euro area and the US economy, which includes the second half of the certificate Federal Reserve Governor Jerome Powell's semiannual meeting of Congress on monetary policy.
 
At 05:25 am GMT, the euro pair rose against the US dollar by 0.07% to 1.1272 levels, compared to the opening levels at 1.1264 after the pair achieved its highest level during the trading session at 1.1279, while achieving the lowest at 1.1254.
 
Markets are being watched by the economies of the eurozone as a whole to reveal inflation data with the release of the annual final reading of the CPI, which may confirm 0.1% growth, little changed from the initial reading of the previous month and 0.3% growth last April, as the reading may confirm The substantial annual index for the same index also grew by 0.9%, little changed from the initial reading and without change from the previous annual reading for the month of April.
 
On the other hand, investors are currently awaiting the release of the housing market data by the US economy, with the release of both the beginning construction index and the building permit index, and amid expectations that building permits will reflect a rise to about 1.23 million permits compared to about 1.07 million permits in April. The readings for home construction may also reflect an increase to about 1.10 million homes compared to about 0.89 million homes in April.
 
This comes before we witness the second and last half of Federal Reserve Governor Jerome Powell's testimony about monetary policy before the US Congress, as Powell will today testify about the Federal Reserve’s monetary policy half-yearly report to the House of Representatives Financial Services Committee in Washington via satellite .
 
We would like to point out that the Federal Reserve Governor Powell made yesterday his prepared testimony regarding the semi-annual report of monetary policy before the Senate Banking Committee also via satellite, which he noted through that there is a state of uncertainty about the timing and strength of the potential economic recovery and that the current decline may lead to inequality Within the United States if the order is not contained.
 
It is noteworthy that the US Congress has allocated $ 3 trillion so far as financial stimulus that included direct financial distributions for families and plans to exempt from small business loans, while the Federal Reserve has implemented cash stimulus programs exceeding $ 1 trillion to support the credit market for families and companies, the last of which was the launch of the Federal Reserve last Monday for a program that provides a package Loans worth $ 600 billion for businesses that employ around 15,000 people or whose returns exceed $ 5 billion.

Technical analysis

The euro against the dollar ended yesterday's trading below the 1.1270 level, which puts the price under the downward corrective pressure again, on its way to visit the 1.1175 level as a next negative station.
 
On the other hand, we notice that the price charts a bearish technical pattern, whose features appear in the image, to support the chances of making further bearish correction in the short term.
 
Therefore, a bearish bias will be favored for today unless the 1.1270 level is breached and stability above it again.
 
The expected trading range for today is between 1.1170 support and 1.1350 resistance
 
Expected trend for today: bearish