EURUSD analysis 28.08.2020

The euro rose against most of the major currencies during trading on Friday, in light of the weakness of the US currency and buying momentum, with expectations indicating that the European single currency is heading towards further rise.

Yesterday, economic data showed that the US GDP contracted by 31.7% in the second quarter, a reading below expectations when it contracted by 32.5%.

Yesterday, the Federal Reserve Chairman revealed a historic shift in his strategy around inflation, targeting an average of 2% higher for some time, which means continuing to maintain interest rates near zero for a period.

Later today, economic data will be released in the eurozone, including consumer confidence, import prices in Germany and the GDP in France.

In terms of trading, the euro rose against the US dollar by 6:19 GMT by 0.5% to 1.1878, and the highest price was at 1.1881 and the lowest price was at 1.1812.

Technical analysis

The decline of the euro against the dollar yesterday stopped near our first awaited target at 1.1775, and the price found strong support there to rebound up and start testing the pivotal resistance 1.1845 now, which provides signs of the price's attempt to recover and achieve new gains, which makes us prefer to stop on the fence until we get A clearer signal for the next direction, which we will obtain by skipping one of the mentioned levels.

We point out that breaching 1.1845 resistance will push the price to resume the main bullish trend and achieve positive targets that start at 1.1945 while breaking the 1.1775 support will press the price to test 1.1720 before any new attempt to resume the main bullish trend.

The expected trading range for today is between 1.1760 support and 1.1945 resistance.

The expected trend for today: depends on the levels mentioned in the report.