EURUSD analysis 03.08.2020

The single currency fluctuated the euro in a narrow range slanting back down during the Asian session to witness its bounce for the second session from its top since 15 May 2018 against the US dollar before the developments and economic data expected today by the economies of the euro area and the US economy, the largest economy in the world.

At exactly 05:08 AM GMT, the euro against the US dollar fell 0.08% to 1.1775 levels, compared to the opening levels at 1.1784 after the pair achieved its lowest level during the trading session at 1.1741, while it achieved the highest at 1.1797, as The pair started the trading session on an upward price gap after it concluded the trading week and last month at 1.1778 levels.

The markets are looking to reveal by the fourth largest economy in the euro area, Spain, about the manufacturing PMI reading, which may reflect a widening to 50.0 compared to a contraction at 49.0 last June, before we witness from Italy, the third largest economy in the region, the reading of the index itself Which may also indicate a widening of 51.3 versus 47.5 in June.

This comes before we witness the final reading of the manufacturing PMI for France, the second largest euro area economy, and Germany the largest in the region, in addition to the eurozone economies as a whole, which may reflect the stability of the expansion in France at 52.0 compared to 52.3 in June, and the stability of the expansion in Germany at 50.0 versus contraction at 45.2, in addition to the expansion of the region as a whole at 51.1 versus contraction at 47.4.

On the other hand, the markets are looking to reveal the final reading of the manufacturing PMI by Markit for the United States, which may reflect the stability of growth at $ 51.3, little changed from the initial reading of last month and against a contraction at 49.8 in June, before we witness By the US economy, the construction spending index, which showed a 1.0% increase compared to a 2.1% decline last May, was released.

Up to disclosure by the largest industrial country in the world about the reading of the Institute of Industrial Supply index, which may show a widening of 53.6 compared to 52.6 in June, as the reading of the Institute of Industrial Supply measured in prices may clarify an expansion to the value of 52.3 compared to 51.3, and comes This is before the Fed revealed the results of the most responsible loan survey for the second quarter of this year.

Technical analysis

The decline in the euro against the dollar stopped at the level of the 23.6% Fibonacci retracement of the measured measure from 1.1185 to 1.1908, and the price starts today with an upward trend in a signal to resume the main bullish trend, and it needs to penetrate 1.1810 to return to the upside channel and achieve more positive targets during the upcoming sessions.

Therefore, the bullish trend will be expected for today, supported by the positive signals provided by the stochastic, awaiting targeting the areas of 1.1995 as the next main station, noting that a break of 1.1737 will press the price to make more bearish correction that reaches its next target to 1.1632 before any new attempt to rise.

The expected trading range for today is between 1.1700 support and 1.1880 resistance.

Expected trend for today: bullish.