EURUSD analysis 06.07.2020

The single currency rose during the Asian session to witness its bounce back for the third session in four sessions from the lowest since 22 of June, when it tested the lowest since the third of the same month against the US dollar on the threshold of developments and economic data expected today Monday by the economies of the euro area and the economy The American is the largest economy in the world.

At 05:31 am GMT, the euro pair rose against the US dollar by 0.37% to 1.1290 levels, compared to the opening levels at 1.1243 after the pair achieved its highest level during the trading session at 1.1293, while achieving the lowest at 1.1241, knowing, The pair started trading on a falling price gap after it concluded the trading last week at 1.1248 levels.

Markets are looking by Germany, the largest economy in the euro area, for the release of factory demand reading, which may show a 15.1% increase compared to a decline of 25.8% last April, while the annual reading of the same indicator may show a decline in the decline to 28.0% compared to 36.6%, before we witness For the eurozone economies as a whole, the Sentix index of consumer confidence was released, showing the contraction contracted to 10.8 from 24.8 in June.

Up to the disclosure of the retail sales index also for the eurozone economies as a whole, which may reflect a 15.0% increase compared to a decline of 11.7% in April and at that time reflected the largest decline since the inception of the European Union in the beginning of 1999, while the annual reading of the same index may show a contraction The decline declined to 7.5% compared to 19.6% in the previous annual reading for April.

Other than that, we followed last Friday, German Chancellor Angela Merkel expressed during her speech in the European Parliament that the member states of the European Union must prepare at the present time for the possibility of Britain leaving the union without reaching an agreement while touching that the eurozone economies were affected and are still affected strongly One of the negative repercussions of the outbreak of the Coronavirus.

On the other hand, investors are awaiting the final reading of the Markit Service Supply Institute index by Markit for America, which may reflect the contraction to 47.0 compared to 46.7 in the first reading last month and compared to contraction at 37.5 in May, before revealing a reading The Institute for Service Supply index, which may indicate a widening of 50.0 versus a contraction at 45.4 in May.

Technical analysis

The euro against the dollar pair begins trading today with a noticeable rise to attack the resistance of the 1.1270 sideways range, which provides signals on the price trend to resume the main bullish trend, but we need to obtain a daily closing above the mentioned level to confirm the continuation of the rise and head towards the first positive target which is located at 1.1420.

Therefore, the sideways trading scenario will remain intact until the price confirms the break of the resistance 1.1270 or the break of the support 1.1175 to determine the next direction more accurately.

The expected trading range for today is between 1.1200 support and 1.1370 resistance.

Expected trend for today: sideways.