Euro Analysis 03-07-2020

The single currency fluctuated the euro in a narrow range slanting back down during the Asian session to witness its bounce for the second consecutive session from its highest since June 24, while it is still in the process of its second consecutive weekly gains against the US dollar on the cusp of developments and economic data expected on Friday By the economies of the euro area and amid the scarcity of economic data by the US economy due to the Independence Day holiday in America.

At 05:41 am GMT, the euro against the US dollar fell 0.04% to 1.1234 levels, compared to the opening levels at 1.1239, after the pair achieved its lowest level during the trading session at 1.1228, while achieving the highest at 1.1249.

The markets are currently looking for a second reading of the Treasury budget for June by France, the second largest economy in the eurozone, before we witness by Spain, the fourth largest economy in the region, the disclosure of the Services PMI reading, which may show a contraction of deflation to 46.0 compared to what Its value is 27.9 last May.

This comes before we witness from Italy, the third largest economy in the euro area, the release of the Services PMI reading, which may also reflect the contraction in contraction to 46.9 compared to 28.9 in May, and before the disclosure of the final reading of the same index for France, which may show stability of expansion at 50.3 Unchanged from the initial reading for the past month and against a contraction at 31.1 in May.

Up to the disclosure of the final reading of the service PMI for Germany, the largest economy in the euro area, which may show the stability of the contraction at 45.8 unchanged from the initial reading of last month and against a contraction at 45.2 in May, and showed the final reading of the same index for the economies of the euro area as a whole the contraction stability at 47.3, unchanged from the previous reading of the previous month and against a contraction of 30.5 in May.

Other than that, we followed yesterday yesterday European Commission President Ursula von Derlin expressed the fact that the European Union will not agree to the Brexit agreement at any cost, explaining that the views between Brussels and London are still very far, adding that the relations between the European Union and China have become very complicated, and that As it touched on the importance of taking the member states of the European Union into account the public interest.

Derline reported that the next six months represent a decisive period for the future of the European Union, explaining that every day that passes represents more losses in jobs and companies, adding that the challenges that existed before the Corona virus crisis remain after the crisis, expressing the Cote of the European Union needs to strengthen the market Interior and doing more to overcome the repercussions of the Corona pandemic, indicating that the crisis is unprecedented and needs unprecedented solutions.

Technical analysis

The euro against the dollar pair is returning to stability within the sideways range after the positive attempts that it witnessed in the previous sessions, which keeps the sideways control over the intraday trading, confined between the support 1.1175 and the resistance 1.1270, awaiting penetration of one of these two levels to clearly define the following goals.

We remind that breaking the support will pressure the price to achieve more downside corrective targets that start at 1.1100 then 1.1020, while breaching the resistance represents the key to restore the main bullish trend and heading to visit the 1.1420 level as the first main station.

The expected trading range for today is between 1.1160 support and 1.1350 resistance

Expected trend for today: sideways