EURUSD analysis 21.07.2020

The single currency fluctuated the euro in a narrow range slanting back down during the Asian session to witness its rebound from above since March 9th, when it tested in late January 2019 against the US dollar after European Union leaders reached an agreement about the virus recovery fund and the lack of data. Economic Tuesday by the economies of the euro area and the US economy the largest economy in the world.

At 05:04 am GMT, the euro against the US dollar fell 0.16% to 1.1430 levels, compared to the opening levels at 1.1448 after the pair achieved its lowest level during the trading session at 1.1423, while achieving the highest in four months at 1.1470.

We have followed, after four days of violent negotiations, European Union leaders reached an agreement on a historic stimulus package to be witnessed by the euro area with the 27 member states unanimously agreeing to issue 750 billion euros ($ 860 billion) in joint debt bonds to help member states within the union reduce the decline The economist, as the emergency fund will provide 390 billion euros in loans and low interest loans of 360 billion euros.

We would like to point out that the agreement of the EU leaders during the European Union economic summit in Brussels for the first time since the outbreak of the Coronavirus, which dealt with the discussion of the European Union’s long-term budget and ways to recover from the negative repercussions of the outbreak of the Coronavirus, represents a victory for German Chancellor Angela Merkel and French President Emmanuel Macron who coined An early proposal for the proposal was made last May.

In the same context, a senior Italian official stated that Italy, the third largest economy in the euro area and the original European center of the epidemic, will likely be the biggest beneficiaries of the plan and that it is expected to obtain grants from the European Emergency Fund worth 82 billion euros and low interest loans of 127 billion euros According to preliminary estimates, according to Bloomberg News.

Technical analysis

The EURUSD pair confirmed the breach of 1.1420 level after closing the daily candle above it, which activates the bullish trend scenario in the intraday and short term, to resume the price of its main bullish path that is organized inside the bullish channels that appear in the picture, waiting for the direction towards 1.1500 then 1.1550 levels as the next major stations.

SMA 50 supports the price from below, to reinforce the positive expectations, which will remain valid unless the 1.1420 level and the most important 1.1350 remain below it.

The expected trading range for today is between 1.1390 ​​support and 1.1550 resistance

Expected trend for today: bullish