EURUSD analysis 04.08.2020

The single currency fluctuated the euro in a narrow range tilted to the upside during the Asian session to witness its bounce for the second session from its lowest since July 27 against the US dollar before the developments and economic data expected on Tuesday by the economies of the euro area and the US economy the largest economy in the world.

At 05:15 am GMT, the euro pair rose against the US dollar by 0.06% to 1.1769 levels, compared to the opening levels at 1.1762, after the pair achieved its highest level during the trading session at 1.1777, while achieving the lowest at 1.1752.

The market is currently looking to France for the second largest economy in the euro area for the issuance of the treasury budget for the month of July, before we witness from Spain the fourth largest economy in the region the release of the change in unemployment, which may show a rise of 19.5 thousand compared to a rise of 5.1 thousand in June June, before the release of inflation data for the eurozone economies as a whole with the release of the producer price reading, which may reflect 0.6% growth versus a 0.6% contraction in May.

On the other hand, investors are awaiting by the US economy, the largest industrialized country in the world, the release of factory demand reading, which may show a slowdown in the pace of growth to 5.1% compared to 8.0% in May, and this comes in conjunction with the disclosure of a statistic of consumer confidence by daily business, which It may reflect a contraction of the contraction to 45.3 compared to 44.0 in July.

Technical analysis

The euro against the dollar trades stable above 1.1737, and gets continuous positive support from the EMA50, to continue to suggest the bullish trend on the intraday and short term, reminding us that our awaited targets start at 1.1908 and extend to 1.1995.

On the other hand, it should be noted that breaking 1.1737 and holding below it will press the price to make more bearish correction targeting 1.1632 levels and it may extend to 1.1546 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.