EURUSD analysis 25.08.2020

The euro rose marginally against most of the major currencies during trading Tuesday, in light of optimism regarding trade relations between the United States and China.

As a result of this optimism, pressure was placed on the US dollar and investors resorted to risk assets such as the stock and currency markets.

This comes after an official statement in which the US Department of Commerce announced the launch of important discussions and consultations with high-level Chinese officials to ease tensions and the first phase of the trade agreement concluded in mid-January.

Market attention will turn later this week towards the "Jackson Hole" meeting to discuss bankers and economists the most prominent developments in terms of monetary and financial policies to confront the repercussions of Corona.

The "Financial Times" newspaper reported that the administration of US President "Donald Trump" is studying an emergency use of the vaccine by "AstraZeneca" and the University of "Oxford" against "Corona", before the presidential elections scheduled for November.

In terms of trading, the euro rose against the dollar by 06:48 GMT by 0.2% to 1.1809, and the highest price was recorded at 1.1817 and the lowest price was at 1.1785.

Technical analysis

The euro against the dollar ended trading yesterday below the 1.1800 barrier after the decline it witnessed in the past sessions, and today the bullish trend begins to test the resistance of the intraday descending channel again, and the price needs to consolidate below this resistance as a first condition for the continuation of the negative scenario during the coming period, which targets 1.1680 Mainly.

Thus, the bearish trend will remain valid and effective for today, as long as the price did not push to breach 1.1810 then 1.1885 and hold above it.

The expected trading range for today is between 1.1700 support and 1.1880 resistance.

The expected general trend for today: Bearish.