EURUSD analysis 27.07.2020

The single currency, the euro, rose during the Asian session to witness its highest level since September 27 of 2018 against the US dollar before the economic developments and data expected on Monday by the euro area economies, which include the disclosure of the monthly report of the German Central Bank and before the developments and economic data expected by The American economy is the largest economy in the world.

At 05:04 am GMT, the EUR / USD pair rose 0.54% to 1.1704 levels, compared to the opening levels at 1.1641 after the pair achieved its highest level in two years at 1.1725, while achieving the lowest during the trading session at 1.1639. As the pair started the trading session on a falling price gap after it concluded the trading last week at 1.1656 levels.

The markets are looking for the eurozone economies to publish the annual reading of the private loan index, which may show an acceleration of growth to 3.2% compared to 3.0% in the previous annual reading of last May, with the disclosure of the annual reading of the M3 money supply index, which may reflect is The other growth accelerated to 9.5% compared to 8.9% in the previous annual reading for May.

This comes before we witnessed by Germany, the largest economy in the eurozone, the disclosure of the IFO business climate index, which may show an increase to 89.2 compared to 86.2 last June, as the reading of the index itself may indicate an expansion of 93.4 to 91.4, The same indicator reading for the current valuations may also reflect an increase to 85.0 compared to 81.3 in June.

On the other hand, investors are currently waiting for the US economy to read the Durable Goods Orders Index, which represents about half of consumer spending, which represents more than two-thirds of the gross domestic product in the United States, which may reflect slowing growth to 7.0% compared to 15.7% in May. Also, a substantial reading of the same indicator may show a slowdown in growth to 3.5%, compared to 3.7% in May.

Technical analysis

The euro against the dollar pair opens today's trading with a strong bullish surge to reach the outskirts of the expected goal at 1.1715, and we believe that the path is open to achieve more gains in the short and medium-term, so that the bullish trend will remain dominant during the upcoming sessions, noting that the next station extends to 1.1815.

On the other hand, it should be noted that a break of 1.1620 will stop the current rise and press the price to make some bearish intraday correction before resuming the main bullish wave.

The expected trading range for today is between 1.1620 support and 1.1815 resistance.

Expected trend for today: bullish.