EURUSD analysis 12.08.2020

The single currency, the euro, fluctuated in a narrow range that tends to rise during the Asian session, to witness its rebound from its lowest since the third of August, when it tested the lowest since July 27 against the US dollar on the cusp of economic developments and data expected today, Tuesday, by the economies of the region The euro and 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 euro against the dollar continued its negative pressure to break the 1.1737 level and settle below it, which opens the way for more bearish correction during the upcoming sessions, on its way to visit 1.1632, which represents 38.2% Fibonacci, to rise from 1.1185 to 1.1908.

Thus, the bearish bias will be expected for today, supported by the negative pressure that the EMA 50 represents, noting that the continuation of the suggested decline depends on stability below 1.1737.

The expected trading range for today is between 1.1630 support and 1.1800 resistance.

The expected general trend for today: Bearish.