EURUSD analysis 10.08.2020

The single currency, the euro, fluctuated in a narrow, upward range during the Asian session, to reflect the resumption of the gains rallies, which were halted in the last sessions of last week for the first time in four sessions against the US dollar before the developments and economic data expected on Monday by the economies of the euro area and the US economy, the largest economy in the world.

At exactly 05:22 AM GMT, the euro pair rose against the US dollar by 0.05% to 1.1794 levels, compared to opening levels at 1.1788, after the pair achieved its highest level during the session's trading at 1.1798, while it reached its lowest level at 1.1774, knowing that, The pair started the session on a rising gap after ending last week’s trading at 1.1787 levels.

Markets are looking to the economies of the euro area as a whole to unveil the Sentix consumer confidence index, which shows the contraction of the contraction to a value of 16.0, compared to a value of 18.2 in the previous reading for the month of July.

On the other hand, investors are currently awaiting the American economy for the release of a statistical reading on employment opportunities and job turnover, which may reflect a decline to about 5.30 million compared to about 5.40 million last May, and this comes in the wake of the labor market data showed at the end of last week, a decline The unemployment rate rose to 10.2%, compared to 11.1 in June.

In the same context, last Friday's reading of the employment change index for sectors other than agricultural showed about 1,763 thousand jobs added compared to 4,791 thousand added jobs, which was revised from about 4.8 million jobs added in June, while the average hourly income index reading reflected an increase. 0.2% against a decline of 1.3%, beating expectations that the decline would narrow to 0.5%.

Technical analysis

The EUR / USD pair has come close to our awaited target at 1.1737 and started to rebound to the upside, to provide indications on the price's direction to resume the main bullish trend, on its way to test the recently recorded high at 1.1908 as a first positive station.

Therefore, a bullish trend will be expected for today, supported by the positivity of the stochastic indicator, noting that breaching 1.1820 will facilitate the pair's task in achieving the awaited target, while the suggested ascend will remain valid unless breaking 1.1737 level and holding below it.

The expected trading range for today is between 1.1737 support and 1.1900 resistance.

The expected general trend for today: Bullish.