Euro Analysis 26-06-2020

The single currency fluctuated the euro in a narrow range tilted to the upside during the Asian session to witness the resumption of its rebound from the lowest since June 3 against the US dollar on the threshold of developments and economic data expected Friday by the economies of the euro area and the US economy the largest economy in the world.
 
At exactly 05:09 am GMT, the euro pair rose against the US dollar by 0.06% to 1.1225 levels, compared to the opening levels at 1.1218 after the pair achieved its highest level during the trading session at 1.1226, while achieving the lowest at 1.1208.
 
The markets are looking for the largest euro area economies, Germany, the release of the import price index, which may reflect a 0.5% decrease compared to a 1.8% decline in last April, before we witness the eurozone economies as a whole the annual readings of the private loans index and the money supply index M-3, which showed accelerated growth to 3.3% and 8.6%, compared to 3.0% and 8.3% in the annual readings prior to April.
 
On the other hand, investors are currently awaiting by the US economy to disclose spending and personal income data, which may reflect a rise in personal spending 8.9% compared to a decline of 13.6% in April, while we may witness a decline in personal income to 6.0% against a rise of 10.5% in April / April, while a reading of the core personal consumption expenditures price index may show stability at zero levels versus a 0.4% decline in April.
 
Up to the disclosure of the final reading of the University of Michigan index of consumer confidence, which may show a widening of 79.1 compared to a widening of 78.9 in the first preliminary reading of the current month and a widening of 72.3 last May, with the release of consumer expectations for inflation June for one year and five years.

Technical analysis

  
The euro against the dollar pair shows sideways and narrow range trading since yesterday evening, to suspend between the support levels 1.1175 and the resistance 1.1270, noting that the moving average 50 constitutes a negative pressure against the price to support the chances of further bearish correction, while the stochastic indicator provides positive signals that may contribute to pushing Price to recover.
 
Consequently, this conflict between technical factors makes us prefer stopping on neutrality until the price confirms one of the above mentioned levels, noting that breaking the support will pressure the price to go towards 1.1100 then 1.1020 levels as next corrective targets, while breaching the resistance will lead the price to resume the main trend The bullish, whose next target is at 1.1420.
 
The expected trading range for today is between 1.1120 support and 1.1320 resistance
 
Expected trend for today: It depends on the levels mentioned in the report