EURUSD analysis 24.08.2020

The euro settled negatively against most of the major currencies during trading on Monday, and the single European currency did not move firmly against the US dollar as the impact of weak economic data is still extended

On Friday, data revealed that the Purchasing Managers' Index (PMI) for manufacturing industries in the euro zone recorded 51.7 points in August, compared to expectations that the index would rise to 52.7 points

The services PMI for the unified bloc countries scored 50.1 points this month, while expectations indicated that the index would rise to 54.6 points.

It is expected later this week to start the "Jackson Hole" meetings, which will discuss the most prominent developments in the monetary and financial policies in the time of "Corona".

In terms of trading, the euro stabilized against the US dollar by 06:13 GMT, negatively at 1.1793, and the highest price was recorded at 1.1808, while the lowest price was recorded at 1.1785.

Technical analysis

The EUR / USD pair stabilizes below the 1.1800 barrier, and the price is undergoing a re-test process for this level, to get the features of a negative pattern that we think has the ability to push the price to achieve more expected decline during the upcoming sessions.

Therefore, we expect to witness negative trading in the intraday term, and the next target is to test the support for the main ascending channel around 1.1670, bearing in mind that breaching 1.1800 then 1.1865 will stop the expected decline and lead the price to restore the main bullish trend again.

The expected trading range for today is between 1.1700 support and 1.1865 resistance.

The expected general trend for today: Bearish.