EURUSD analysis 04.09.2020

The single currency, the euro, fluctuated in a narrow range that tends to decline during the Asian session, to witness its rebound for the fourth consecutive session from its high since the second of May of 2018 against the US dollar on the cusp of developments and economic data expected on Friday by the economies of the euro area and the US economy is greater Economy in the world.

At exactly 05:59 AM GMT, the euro pair fell against the US dollar by 0.01% to 1.1851 levels, compared to the opening levels at 1.1852, after the pair achieved its lowest level during the session's trading at 1.1839, while it achieved its highest at 1.1858.

The markets are looking forward to Germany, the largest economy in the euro area, for the release of the factory orders reading, which may show a slowdown in growth to 5.1% compared to 27.9% last June, while the annual reading of the same index may indicate the widening of the decline to 20.4% compared to 11.3%, before France, the second-largest economy in the region, to witness the release of the Treasury budget reading for August.

On the other hand, investors are currently awaiting the US economy to disclose labor market data with the release of the employment change index reading for the sectors other than agricultural, which may reflect 1,375,000 added jobs compared to 1,763,000 jobs added in July, while the average income index reading may indicate In the hourly stability at zero levels, compared to 0.2%. This is with the unemployment rate reading showing a decline to 9.8% from 10.2% in July.

Technical analysis

The euro against the dollar began to rebound to the upside after approaching the support of the main ascending channel that appears in the image, indicating that the price is on its way to resume the main bullish trend, and according to the rules of trading inside price channels, the price is preparing to start a bullish wave in the intraday and short term.

Consequently, we expect to witness positive trading in the upcoming sessions, with targets starting at 1.1916 and extending to 1.2045, keeping in mind that breaking 1.1780 will stop the expected rise and pressure the price to turn to the downside.

The expected trading range for today is between 1.1780 support and 1.1950 resistance.

The expected general trend for today: Bullish.