EURUSD analysis 11.08.2020

The single currency, the euro, fluctuated in a narrow, upward range, during the Asian session, to witness its rebound from its lowest since the third of August, when it tested its lowest since July 27 against the US dollar before the developments and economic data expected today, Tuesday, by the economies of the euro area. The US economy is the largest in the world.

At exactly 04:59 AM GMT, the euro pair rose against the US dollar by 0.12% to 1.1752 levels, compared to the opening levels at 1.1738, after the pair achieved its highest level during the session's trading at 1.1755, while it reached its lowest level at 1.1738.

The markets are looking to the economies of the eurozone as a whole to reveal a statistical reading of the ZEW economic confidence index for the economies of the eurozone as a whole, which may explain the contraction of the expansion to a value of 55.3 compared to a value of 59.6 in the previous reading for the month of June. ZEW Economic Sentiment for Germany, the largest economy in the eurozone, narrowed breadth to 57.0, from 59.3 in June.

On the other hand, investors are awaiting the US economy for the release of the producer price index reading, which is a preliminary indicator of inflation, which may reflect a growth of 0.3% against a contraction of 0.2% in June, and the core reading of the same index may indicate a growth of 0.1% against a contraction of 0.3%. While the annual reading of the index may show contraction to 0.7% versus 0.8%, the core annual reading may reflect stability at zero levels versus 0.1% growth.

Technical analysis

The EUR / USD pair attempted to breach the 1.1737 level with the opening of the day, but it returns to move above it, which maintains the bullish trend scenario valid until now, supported by the positive signs presented by the stochastic indicator, waiting to head towards our positive targets that start at 1.1850 then 1.1908.

We recall that breaking 1.1737 and holding below it will pressure the price to conduct more bearish correction, whose next target is at 1.1632 before any new attempt to rise.

The expected trading range for today is between 1.1680 support and 1.1850 resistance.

The expected general trend for today: Bullish.