EURUSD analysis 15.07.2020

The single currency fluctuated the euro in a narrow range slanting back down during the Asian session to witness its rebound from its top since the tenth of last March against the US dollar amid the scarcity of economic data by the economies of the euro area and on the cusp of developments and economic data expected on Wednesday by the largest US economy Economy of the world.

At 05:13 AM GMT, the euro against the US dollar fell 0.04% to 1.1395 levels, compared to the opening levels at 1.1400 after the pair achieved its lowest level during the trading session at 1.1391, while achieving the highest in four months at 1.1423.

Investors are currently awaiting by the US economy the release of the import price index, which may clarify the stability of growth at 1.0%, little changed from the previous reading last May, and this comes in conjunction with the disclosure of industrial sector data for the largest industrial country in the world with the release of reading The New York industrial index, which may reflect a 10.0 percent expansion versus a contraction at 0.2 in June.

Up to the issuance of the industrial production index, which may reflect the acceleration of growth to 4.5% compared to 1.4% in May, as a reading of the Energy Utilization Index may show the acceleration of growth to 67.9% compared to 64.8% in May, before we witness the talk of the committee member Federal Open Market and Federal Reserve Chairman Patrick Harker about economic prospects in a hypothetical discussion hosted by the City Center Owners Association.

This comes before we witnessed the unveiling of the book Big, whose importance lies in the fact that it is issued two weeks before the FOMC meeting. Otherwise, we followed yesterday the US President Donald Trump's announcement of signing legislation to impose sanctions on China in response to its interference in the autonomy of Hong Kong He also signed an executive order ending Hong Kong's special status with his country, while again blaming China for the global outbreak of corona.

Technical analysis

The EURUSD pair succeeded in touching our awaited target at 1.1420 and found strong resistance there, to start offering negative trades now in a sign to start a possible bearish intraday wave, especially as the stochastic indicator shows clear negative signs, while the EMA50 continues to provide positive support for the price.

Therefore, we prefer temporarily stopping neutral until the price confirms its position in relation to the above-mentioned level, as its breach will push the price to 1.1500 as the next positive target, while failure to breach will press the price to drop and test 1.1300 then 1.1270 areas before any new attempt to rise.

The expected trading range for today is between 1.1300 support and 1.1500 resistance.

Expected trend for today: neutral.