EURUSD analysis 31.08.2020

The single currency, the euro, fluctuated in a narrow range sloping upward during the Asian session to witness its stability near its highest since mid-2018 against the US dollar before the developments and expected economic data on Monday by the economies of the euro area and amid the scarcity of economic data at the beginning of this week by the US economy. Economy in the world.

At exactly 06:04 GMT, the euro pair rose against the US dollar by 0.02% to 1.1901 levels, compared to opening levels at 1.1899, after the pair achieved its highest level during the session's trading at 1.1929, while the lowest was at 1.1895, knowing that The pair started the session on a descending gap, after ending last week’s trading at 1.1903 levels.

The markets are looking for the largest economy in the euro area, Germany, to reveal inflation data, with the release of the preliminary reading of the consumer price index, which may reflect the stability at zero levels against a contraction of 0.5% last July, before we see Spain and Italy, the fourth and third largest economies. The region also disclosed the annual reading of the same index.

On the other hand, markets are looking forward to the speech of a member of the Federal Open Market Committee and Deputy Governor of the Federal Reserve, Richard Clarida, who is scheduled to participate in a hypothetical discussion on monetary policy hosted by the Peterson Institute for International Economics, and this comes in the wake of the Federal Reserve’s announcement on the sidelines of the Jackson Hole meetings adopting a policy New for inflation and average inflation targeting two percent above for some time.

Technical analysis

The euro versus dollar pair shows new positive trades with the opening of the day and is trying to approach our first target, which now rises to 1.1965, where it gets continuous positive support from the 50 moving average, noting that breaching the mentioned level will push the price to head towards 1.2160 areas in the near term.

From here, we will continue suggesting the bullish trend for the upcoming period, noting that the breach of 1.1845 will pressure the price to test 1.1735 areas before any new attempt to rise.

The expected trading range for today is between 1.1845 support and 1.2000 resistance

The expected general trend for today: Bullish