EURUSD analysis 21.08.2020

The single currency, the euro, fluctuated in a narrow, upward sloping range during the Asian session, to witness its retracement to the seventh session in eight sessions from its lowest since the third of August, and to prepare for the longest weekly gain rally since the second half of 2004 against the US dollar on the cusp of economic developments and data. Expected Friday by the economies of the euro area and the US economy, the largest economy in the world.

At 06:13 AM GMT, the euro pair rose against the US dollar by 0.15% to 1.1878 levels, compared to the opening levels at 1.1860, after the pair achieved its highest level during the session's trading at 1.1879, while it reached its lowest level at 1.1856.

The markets are currently awaiting both the French economy, the second-largest economy in the eurozone, and the German economy, the largest in the eurozone, in addition to the economies of the region as a whole. The region as a whole.

On the other hand, the markets are awaiting the release of the preliminary reading of the Markit Industrial and Service Purchasing Managers Index on America, which may reflect the expansion of the industrial sector in the largest industrial country in the world to 51.9 compared to 50.9 in July, and the service sector to 50.9 compared to 50.0, before The Existing Home Sales Index reading showed an increase of 14.7% to 5.40mn homes, compared to a 20.7% rise at 4.72mn in June.

Other than that, we followed, last Wednesday, the Federal Reserve’s disclosure of the minutes of the FOMC meeting held on July 28-29 in which monetary policymakers at the Federal Reserve addressed the fact that the current situation surrounding the Corona pandemic could "severely affect Economic activity, employment and inflation are in the near term and pose significant risks to the economic outlook in the medium term. "

Technical analysis

The EUR / USD pair continues providing positive trading, gradually moving away from the support of the ascending channel, which supports the continuation of the bullish trend scenario in the intraday and short term, supported by the MA 50, reminding you that our next main target extends to 1.2070.

On the other hand, it should be noted that a break of 1.1840 and stability below it will put the price under negative pressure targeting the test of 1.1710 areas and may extend to 1.1665 before any new attempt to rise.

The expected trading range for today is between 1.1800 support and 1.1980 resistance.

The expected general trend for today: Bullish.