AUDUSD analysis 20.07.2020

The single currency fluctuated the euro in a narrow range tilted to the upside during the Asian session to see the highest since July 15, when I experienced the highest since the tenth of last March against the US dollar before the developments and economic data expected today Monday by the economies of the euro area Amid the scarcity of economic data earlier this week by the US economy, the largest economy in the world.

At 05:35 am GMT, the euro pair rose against the US dollar by 0.26% to 1.1441 levels, compared to the opening levels at 1.1411 after the pair achieved its highest level in a week at 1.1446, while it achieved its lowest during the trading session at 1.1408, with Knowing that the pair started trading this week on a falling price gap after a, it concluded last week's trading at 1.1428 levels.

Investors are currently awaiting by the largest economies of the euro area, Germany, the release of the producer price index, which is an initial indication of inflationary pressures, which may show growth of 0.2% against a contraction of 0.4% last May, while the annual reading of the same index may show the contraction reduced to 1.5% Against 2.2%, and this comes before we witness the disclosure of the monthly report of the German Central Bank.

The markets are also looking to reveal the seasonally adjusted reading of the current account index for the eurozone economies as a whole, which may reflect the widening of the surplus to 14.5 billion euros compared to 10.2 billion euros last April, just as the seasonally adjusted reading of the same indicator may show a widening of the surplus to its value 15.2 billion euros, compared to 14.4 billion euros in April.

Otherwise, during the weekend, we followed up on the activities of the European Union economic summit, which dealt with the discussion of EU leaders in Brussels for the first time since the outbreak of the Coronavirus to the European Union’s long-term budget and ways to recover from the negative repercussions of the outbreak of the Coronavirus, especially about the 750 billion euro economic recovery fund file. ($ 856 billion), which was marked by disputes over the amount of its distribution through grants and low-interest loans.

Technical analysis

The euro against the dollar ended last Friday's trading above 1.1420, but it opens today with a noticeable negativity to move below this level, which keeps the downside scenario effective for the coming period, supported by the negative signal provided by the stochastic indicator, waiting for the direction towards 1.1270, which represents our next main goal.

On the other hand, it should be noted that breaching 1.1420 again and holding above it will stop the expected decline and push the price to achieve positive targets that start at 1.1500.

The expected trading range for today is between 1.1320 support and 1.1500 resistance.

Expected trend for today: bearish.