EURUSD analysis 26.08.2020

The euro fell against most major currencies, especially the dollar, during trading today, Wednesday, after the easing of trade tensions between the two largest economies in the world.

The Coronavirus crisis is still a preoccupation for world economies. Sometimes it is talked about the US Food and Drug Agency’s approval of recovered blood plasma as a treatment for the disease, and at other times the Financial Times reports that US President Donald Trump’s administration is studying the emergency use of the anti-AstraZeneca vaccine. For the coronavirus.

Market focus this week will turn to the "Jackson Hole" meetings of bankers and economists.

On the sidelines of the annual forum in "Jackson Hole", Central Bank President Jerome Powell will deliver a speech on Thursday to talk about the main challenges and steps of monetary policy.

In terms of trading, the euro fell against the US dollar by 07:32 GMT by 0.2% to 1.1817, and the highest price was recorded at 1.1843, while the lowest price was recorded at 1.1807.

Technical analysis

The recent trading of the euro against the dollar is confined to a bearish triangular flag pattern whose features appear in the above chart, therefore, the price needs to break 1.1800 to activate the negative impact of this pattern and then rush to resume the expected downside trend for the coming period, which targets testing the support of the main ascending channel at 1.1695.

From here, we will continue suggesting the bearish trend over the intraday term, taking into account that breaching 1.1850 is the first key to regaining the main bullish trend, and heading towards achieving positive targets that start with testing 1.1905 then 1.1950.

The expected trading range for today is between 1.1720 support and 1.1880 resistance.

The expected general trend for today: Bearish.