EURUSD analysis 07.07.2020

The single currency fluctuated the euro in a narrow range tilted to the upside during the Asian session to witness its rebound to the fourth session in five sessions from the lowest since June 22, 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 Tuesday By the economies of the euro area and the US economy the largest economy in the world.

At 05:15 am GMT, the euro pair rose against the US dollar by 0.05% to 1.1315 levels, compared to the opening levels at 1.1309, after the pair achieved its highest level during the trading session at 1.1333, while achieving the lowest at 1.1306.

Markets are looking by Germany, the euro zone’s largest economy, to disclose industrial sector data with the release of the seasonally adjusted reading of the industrial production index, which may reflect an increase of 11.0% compared to a decline of 17.9% last April, while the annual seasonally adjusted reading of the same indicator may show a contraction The decline declined to 11.1% compared to 25.3% in the previous annual reading for April.

This comes before we witnessed by France, the second-largest economy in the region, the release of the Trade Balance Index reading, which may explain the deficit narrowing to 4.5 billion euros against 5.0 billion euros in April, and before the disclosure by Italy, the third-largest economy in the region of a reading of a sales index Retail which may show a rise of 15.0% compared to a decline of 10.5% in April.

On the other hand, investors are currently awaiting by the US economy the disclosure of labor market data with the release of a job reading and job turnover reading that may reflect a decrease to 4.70 million compared to 5.05 million last April, and that comes before we witness the talk of a member of the Federal Committee For Open Market and Federal Reserve Governor Randall Carls on the Financial Stability Board at the Treasury Club Food Seminar online.

Technical analysis

The EURUSD pair confirmed the breach of the 1.1270 level after the daily candle closed above it, to activate the bullish trend scenario in the intraday and short term, paving the way towards heading towards the level of 1.1420, which represents the next positive target.

Thus, the bullish bias will be likely during the upcoming sessions supported by the EMA50, noting that a break of 1.1270 will stop the suggested rise and press the price to test 1.1175 areas initially.

The expected trading range for today is between 1.1240 support and 1.1420 resistance.

Expected trend for today: bullish.