EURUSD analysis 28.07.2020

The single currency fluctuated the euro in a narrow range slanting back down during the Asian session to witness its rebound from above since September 26, 2018 against the US dollar before the developments and economic data expected today Tuesday by the fourth largest euro area economy Spain and the American economy the largest economy in the world which Includes launch of the FOMC meeting in Washington.

At exactly 05:08 AM GMT, the euro against the US dollar fell 0.17% to 1.1732 levels, compared to the opening levels at 1.1752, after the pair achieved its lowest level during the trading session at 1.1714, while achieving the highest at 1.1774.

Investors are looking to the Spanish economy to disclose labor market data with the release of the unemployment rate index, which may show an increase to 16.6% compared to 14.4% in the first quarter. The chief commissioner of the European Union for the UK exit file, Michel Barnier, believes that British Prime Minister Boris Johnson has a desire to reach a trade agreement with the European Union.

On the other hand, investors are currently awaiting by the US economy the disclosure of housing market data with the release of the annual reading of the house price index, which may show accelerated growth to 4.1% compared to 4.0% last May, before the disclosure by the largest industrial country in The world reported a reading of the Richmond Industrial Index, which may reflect a widening of its value of 5 versus the stability at zero levels of 32.3 last June.

This comes with the release of the consumer confidence index, which may show a widening of the value to 94.0 compared to 98.1 in June, to start the activities of the Federal Open Market Committee meeting that will be held today Wednesday via satellite in Washington, which is expected to keep policymakers Cash at the Federal Reserve on interest rates is between zero and 0.25% for the third meeting in a row.

Technical analysis

The euro against the dollar trades stable around the 1.1760 level after yesterday's strong bullish rally, which is affected by the current stochastic negativity, pending the acquisition of a positive momentum sufficient to push the price to resume the main bullish trend, whose next target is located at 1.1815.

Thus, we continue to favor the bullish trend for the upcoming period, provided stability above 1.1675, as breaking this level will put the price under negative pressure targeting testing 1.1550 areas and it may extend to 1.1450 before any new attempt to rise.

The expected trading range for today is between 1.1680 support and 1.1850 resistance.

Expected trend for today: bullish.