EURUSD analysis 13.08.2020

The single currency, the euro, fluctuated in a narrow, rising range during the Asian session, to witness its rebound for the second consecutive session from the lowest since the third of August against the US dollar on the cusp of economic developments and data expected today, Thursday, by the economies of Germany, the largest economy in the euro area and the US economy. The largest economy in the world.

At exactly 05:37 AM GMT, the euro pair rose against the US dollar by 0.24% to 1.1812 levels, compared to opening levels at 1.1784, after the pair achieved its highest level during the session's trading at 1.1817, while it reached its lowest level at 1.1782.

Markets are waiting for Germany to unveil inflation data with the release of the final reading of the consumer price index, which may confirm a 0.5% contraction, unchanged from the previous initial reading for the month of July, compared to a growth of 0.6% last June, in conjunction with the release of the reading. Wholesale inventories price index, which may show a slowdown in growth to 0.4%, compared to 0.6% in June.

On the other hand, investors are currently waiting for the US economy to see the release of the aid requests index reading for the past week on August 8th, which may reflect a decrease of 66 thousand applications to 1,120 thousand applications compared to 1,186 thousand applications in the previous reading. Continuing for the past week at the beginning of this month, a decrease by 209 thousand requests to 15,898 thousand requests compared to 16,107 thousand requests in the previous reading.

This comes in conjunction with the disclosure of the import price index reading, which may indicate a slowdown in growth to 0.6% compared to 1.4% in June, while the annual reading of the same index may show a contraction of the decline to 1.7% compared to 3.8%. Otherwise, we followed yesterday expressing US House of Representatives Speaker Nancy Pelosi on the fact that the Republican and Democratic parties are still miles away in their negotiations over the virus relief package.

Technical analysis

The euro versus dollar ended trading yesterday with a strong rise, stabilizing above the EMA50, to nullify the bearish corrective scenario and lead the price to resume the main bullish trend, on its way to head towards 1.1908 as a next major station.

Thus, the bullish bias will be expected for today, noting that the continuation of the bullish wave depends on stability above 1.1737.

The expected trading range for today is between 1.1737 support and 1.1908 resistance.

The expected general trend for today: Bullish.