EURUSD analysis 19.08.2020

The single currency, the euro, fluctuated in a narrow range slanting to an upside during the Asian session, to witness against the US dollar amid scarce economic data from the eurozone economies and ahead of the developments and economic data expected on Wednesday by the US economy, the largest economy in the world.

At exactly 06:53 AM GMT, the euro pair rose against the US dollar by 0.07% to 1.1939 levels, compared to opening levels at 1.1931, after the pair achieved its highest level during the session's trading at 1.1953, while it reached its lowest level at 1.1928.

In addition, investors are awaiting the economies of the euro area as a whole to reveal the current account reading, which may indicate a narrowing of the surplus to a value of 7.0 billion euros compared to 8.0 billion euros in May. Held July 28-29, during which monetary policymakers at the time kept interest rates at zero.

It is noteworthy that Federal Reserve Governor Jerome Powell stressed in the press conference held after the meeting at the time that the Fed was committed to using all its tools to support the recovery and reduce the negative repercussions of the Corona pandemic, and according to the latest figures issued by the World Health Organization, the number of cases infected with the Coronavirus increased to nearly 21.76 million and 771,635 died. People killed in 216 countries.

Technical analysis

The EUR / USD pair confirmed the breach of 1.1908 after closing the daily candlestick above it, which leads the price to achieve more gains in the intraday and short term, organized within the ascending channels that appear on the image, waiting to head towards 1.2060 as a next major station.

The SMA 50 continues to support the expected bullish wave, noting that stability above 1.1908 is important for the upside move to continue, as breaking it will pressure the price to initially test 1.1810 level before any new attempt to rise.

The expected trading range for today is between 1.1850 support and 1.2030 resistance.

The expected general trend for today: Bullish.