Euro Analysis 19-06-2020

The euro currency fluctuated in a narrow range tilted to the upside during the Asian session to witness its bounce for the second session from the lowest since the third of June, while it is still in its second weekly losses in a row against the US dollar on the cusp of developments and economic data expected on Friday by The euro area economies and the US economy are the largest in the world.
 
At 05:16 am GMT, the euro pair rose against the US dollar by 0.07% to 1.1213 levels, compared to the opening levels at 1.1205, after the pair achieved its highest level during the trading session at 1.1216, while achieving the lowest at 1.1216.
 
The markets are looking to reveal the current account index reading for the eurozone economies as a whole for the month of May, in conjunction with the European Union leaders ’summit, which is expected to discuss the European recovery plan file due to the negative repercussions of the spread of the Corona virus and the new EU’s long-term budget via satellite Industrial, and it is reported that German Chancellor Angela Merkel expressed yesterday that a decision on the plan may not be reached tomorrow.
 
On the other hand, investors are currently awaiting by the US economy the release of the current account reading, which may reflect the deficit shrinkage to $ 101 billion compared to $ 110 billion during the past fourth quarter, before we witness the talk of the Deputy Governor of the Federal Reserve and a member of the Federal Open Market Committee Randall Quarles about bank solvency tests at the Women's Public Policy Event on Housing and Satellite Finance.
 
Up to the participation of Federal Reserve Governor Jerome Powell with the President of the Cleveland Bank and member of the Federal Open Market Committee Loretta Mester in a hypothetical discussion about building a flexible workforce during the era of Corona Virus at the Youngstown Community Event in Ohio, and this comes hours after the expiry of the certification activities The Governor Powell's semiannual about monetary policy in front of Congress.
 
We would like to point out, because Powell Naughty testified before the Congress that there is a state of uncertainty about the timing and strength of the potential economic recovery and that the current downturn may lead to widening inequality within America in the event that the matter is not contained, while touching that "until the confidence is restored that the Corona pandemic is under control." , A full recovery will not be possible "and that" the downward curve continues and with it the possibility of jobs falling under the risk of final loss and business closure "
 

Technical analysis

  
The euro against the dollar pair reached a few points difference from our awaited target at 1.1175, and some bullish tendency appears affected by the positivity of the stochastic indicator, and it may witness temporary positive trades before resuming the decline again, where we expect the bearish trend to dominate during the upcoming sessions due to the impact of the completed head and shoulders pattern, and with support SMA 50.
 
From here, the bearish trend will remain valid for the coming period, and breaking 1.1175 will push the price to 1.0985 as the next main target, while a break of 1.1270 is a positive factor that will stop the current corrective corrective path and lead the price to restore the main bullish direction again.
 
The expected trading range for today is between 1.1110 support and 1.1300 resistance
 
Expected trend for today: bearish