EURUSD analysis 23.07.2020

The single currency (the euro) fluctuated in a narrow range tilted to the upside during the Asian session to witness its stability near its top since mid-October 2018 against the US dollar before the developments and economic data expected on Thursday by the economies of the euro area and the US economy, the largest economy in the world.

At 05:40 am GMT, the EUR / USD pair rose 0.13% to 1.1582 levels, compared to the opening levels at 1.1570 after the pair achieved its highest level during the trading session at 1.1585, while achieving the lowest at 1.1564.

The markets are looking for Germany, the largest economy in the eurozone, to issue a statistical reading of the GFK index of consumer confidence, which may reflect a contraction of deflation to 4.6 compared to 9.6 in the previous reading last June, before we witness about the eurozone economies as a whole. It may also reflect a contraction of the contraction to 12 versus 15 in June.

Markets are awaiting from the US economy the release of the aid claims index for the last week on July 18, which may reflect stability at 1.3 million applications unchanged from the previous weekly reading, before we witness the release of the leading indicators reading that may explain the slowdown in the pace of growth to 2.1% Against 2.8% last May.

Technical analysis

The euro against the dollar trading stabilizes around the resistance of the bullish intraday channel that appears in the picture and faces a difficulty in overcoming it, pending obtaining a positive momentum sufficient to contribute to pushing the price to continue the main bullish trend, which targets the level of 1.1715 as the next main station.

SMA 50 continues to provide positive support for the price, to continue to favor the positive scenario for the upcoming period, noting that failure to breach 1.1600 will force the price to provide temporary negative trading and visit 1.1470 levels before any new attempt to rise.

The expected trading range for today is between 1.1500 support and 1.1670 resistance

Expected trend for today: bullish