EURUSD analysis 14.07.2020

The single currency fluctuated the euro in a narrow range tilted upward against the US dollar on the cusp of developments and economic data expected on Tuesday by the economies of the euro area and the US economy, which includes the talk of FOMC member and Deputy Governor of the Federal Reserve Bank of Elle Brenard about the expectations of economic and monetary policy at a seminar Online hosted by the National Association of Business Economics.

At exactly 05:02 am GMT, the euro pair rose against the US dollar by 0.01% to 1.1345 levels, compared to the opening levels at 1.1343 after the pair achieved its highest level during the trading session at 1.1350, while achieving the lowest at 1.1335.

Markets are awaiting the largest Eurozone economies, Germany, to disclose inflation data with the release of the final CPI reading, which may confirm 0.6% growth unchanged from the previous initial reading for June and 0.1% contraction in May, before that We are witnessing the Eurozone economies as a whole the release of the industrial production index, which may reflect a rise of 14.9% compared to a decline of 17.1% in April.

This comes in conjunction with the disclosure of a statistical reading of the ZEW economic confidence index for the Eurozone economies as a whole, which may explain the expansion of the expansion to 55.8 compared to 58.6 in the previous reading in May, as a statistical reading of the ZEW economic confidence index for Germany may show a decrease Widening to 60.1 compared to 63.4 in May.

On the other hand, investors are currently waiting for the US economy to disclose inflation data with the release of the CPI reading that may show 0.5% growth versus a 0.1% contraction in May, as the substantial reading of the same indicator may show 0.1% growth versus 0.1% contraction While the annual reading of the index may reflect the acceleration of growth to 0.6% versus 0.1%, and the substantial annual reading may show a slowdown in growth to 1.1% versus 1.2%.

Technical analysis

The euro against the dollar pair approached the resistance of the bullish intraday channel that appears in the picture, and begins to offer negative trades on its way to a possible test to support this channel, as the price is affected by the negativity of the stochastic indicator, which may force him to provide some bearish bias during the upcoming sessions.

But in general, we continue to favor the bullish trend over the intraday and short term with price stability above 1.1270, supported by the EMA50 that continues carrying the pair from below, noting that our next main target is at 1.1420.

The expected trading range for today is between 1.1270 support and 1.1420 resistance.

Expected trend for today: bullish.