EURUSD analysis 10.07.2020
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 11, while it is still in the process of its third 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, which includes the activities of the meetings of finance ministers of the euro area Ecovin in Brussels and on the threshold of developments and economic data expected from the US economy, the largest economy in the world.
At exactly 05:39 AM GMT, the euro against the US dollar fell 0.17% to 1.1268 levels, compared to the opening levels at 1.1285, after the pair achieved its lowest level during the trading session at 1.1268, while achieving the highest at 1.1290.
The markets are looking for France, the second largest economy in the eurozone, the release of the industrial production index, which may reflect a 15.2% increase compared to a decline of 20.1% last April, before we witness from Italy the third largest economy in the region the issuance of the same reading of the index, which may also appear An increase of 23.5% compared to a decline of 19.1% in April, and this comes in conjunction with the activities of the meetings of finance ministers of the Eurozone Eurofin via satellite.
On the other hand, the markets are currently awaiting the release of the inflation data by the US economy with the release of the producer price index, which is an initial indication of inflationary pressures that may reflect the stability of growth at 0.4% during June, while the fundamental reading of the same indicator may show 0.1% growth Against a contraction of 0.1%, and the annual reading of the index may show a contraction of 0.2% versus 0.8% in the previous reading, while a substantial annual reading may reflect accelerated growth to 0.4% versus 0.3%.
Technical analysis
The EURUSD pair faced clear negative pressure yesterday to settle now at the pivotal support 1.1270, which requires attention from the upcoming trading, as the continuation of negative pressure and breaking this level will stop the positive scenario suggested in our recent reports and push the price to incur more losses.
The stochastic is showing oversold now, to support the chances of a bounce up during the upcoming sessions, making us hold onto our bullish expectations provided stability above 1.1270, noting that our main expected target is 1.1420.
The expected trading range for today is between 1.1200 support and 1.1370 resistance.
Expected trend for today: bullish.
