EURUSD analysis 29.07.2020

The euro currency fluctuated in a narrow range tilted to the upside during the Asian session against the US dollar before the developments and economic data expected on Wednesday by the largest economies of the euro area Germany and the American economy the largest economy in the world, which includes the activities of the Federal Open Market Committee meeting July 28-29 And that is ahead of the upcoming press conference of Federal Reserve Governor Jerome Powell in Washington.

At exactly 04:57 AM GMT, the euro pair rose against the US dollar by 0.09% to 1.1727 levels, compared to the opening levels at 1.1716, after the pair achieved its highest level during the trading session at 1.1734, while achieving the lowest at 1.1714.

The markets are looking to Germany to reveal the import price index reading, which may reflect the acceleration of growth to 0.5% compared to 0.3% last May, while the annual reading of the same indicator may show a decline in the decline to 5.1% compared to 7.0% in May, and comes This is hours before the disclosure of growth data for Germany for the second quarter, which may reflect the widening contraction of the largest economies of the euro area to 9.0% compared to 2.2% in the first quarter last.

On the other hand, investors are currently awaiting by the US economy the disclosure of the merchandise trade balance index, which may explain the widening of the deficit to $ 75.5 billion compared to $ 74.3 billion in May, in conjunction with the release of the preliminary reading of the wholesale inventory index, which It may reflect the contraction of the decline to 0.4% compared to 1.2% in May.

This comes before we witness the release of housing market data with the release of existing home sales, which may show a slowdown in growth to 15.6% compared to 44.3% in May, while the annual reading of the same indicator may show a widening decline to 10.2% compared to 5.1% in May. May, through to the end of the activities of the Federal Open Market Committee held in Washington via satellite.

Yesterday, we followed the Fed's announcement in a statement coinciding with the activities of the Federal Committee meeting, during which the Federal Reserve monetary policymakers are expected to keep short-term reference interest rates between zero and 0.25% for the third meeting, respectively, of its decision to extend Lending facilities until the end of next December, which were due to expire by the end of next September.

We would like to point out because the Fed made it clear in its press statement yesterday that extending the facilities for three months will facilitate the planning process by the participants in addition to ensuring that the facilities remain available to help the economy recover from the Corona pandemic while stating that the lending facilities provided strong support to the markets and helped to improve the work of the market. Work significantly, and it boosted credit for families and companies in addition to state and local governments.

Technical analysis

The EURUSD pair trades last within a bullish trigonometric pattern whose features are shown in the above chart, and therefore, the price needs to breach the resistance of this model at 1.1735 to get a good positive incentive that supports the continuation of the main bullish trend, which targets 1.1815 as the next station.

Consequently, we will continue to favor the bullish trend for the upcoming period supported by the moving average 50 and stochastic, keeping in mind that a break of 1.1700 will press the price to start a bearish corrective wave over the intraday basis before resuming the suggested rise.

The expected trading range for today is between 1.1650 support and 1.1830 resistance.

Expected trend for today: bullish.