EURUSD analysis 06.08.2020

The single currency, the euro, fluctuated in a narrow range sloping to an upside during the Asian session, to witness its rebound to the fourth session from the lowest since July 27 against the US dollar before the developments and economic data expected today, Thursday, by the economies of the euro area and the US economy, the largest economy in the world.

At exactly 05:13 AM GMT, the euro pair rose against the US dollar by 0.13% to 1.1879 levels, compared to opening levels at 1.1863, after the pair achieved its highest level during the session's trading at 1.1886, while it reached its lowest level at 1.1862.

The markets are looking forward to Germany, the largest economy in the euro area, for the release of the factory orders reading, which may show a slowdown in growth to 10.3% compared to 10.4% last May, while the annual reading of the same index may indicate the widening of the decline to 34.0% compared to 29.3%, before To witness the release of Italy, the third-largest economy in the region, of the Industrial Production Index, which may reflect a slowdown in growth to 5.6%, compared to 42.1% in May.

On the other hand, investors are currently awaiting the American economy for the release of the aid claims index reading for last week at the beginning of August, which may reflect a decrease of 24 thousand applications to 1,410 thousand applications compared to 1,434 thousand applications in the previous reading, as the reading of continuous aid requests may appear. Last week, on July 25, there was a decline of 298,000 requests to 16,720,000, compared to 17,018,000 in the previous reading.

This comes, before we witness the participation of a member of the Federal Open Market Committee and Chairman of the Dallas Federal Reserve, Robert Kaplan, in a panel discussion entitled "Economic Recovery and Challenges in the United States" in a hypothetical event hosted by the Official Forum of Monetary and Financial Institutions, and the markets are also looking forward to the discussions of US lawmakers about a package Relief from viruses anticipated by Congress.

Technical analysis

The euro against the dollar continues to fluctuate below the level of 1.1908 after it found strong resistance there, to show signs of a possible decline in the upcoming sessions, especially since the stochastic indicator is showing negative signs, but we notice that the SMA 50 continues to provide positive support for the price, to keep our expectations for the bullish trend that It targets the breach of the mentioned level to head towards our next station at 1.1995.

On the other hand, we should note that a break of 1.1850 will put the price under additional negative pressure targeting 1.1765 - 1.1737 levels before any new positive attempt.

The expected trading range for today is between 1.1790 support and 1.1960 resistance

The expected general trend for today: Bullish