EURUSD analysis 07.09.2020

The single currency, the euro, fluctuated in a narrow range that tends to decline during the Asian session, to witness its rebound for the fifth session in a row from its highest since the second of May 2018 against the US dollar on the cusp of economic developments and data expected today, Monday by the economies of the euro area and amid scarce economic data in Early this week by the US economy the largest in the world due to the Labor Day holiday in America.

At exactly 06:23 AM GMT, the euro pair fell against the US dollar by 0.05% to 1.1834 levels, compared to opening levels at 1.1840, after the pair achieved its lowest level during the session's trading at 1.1830, while it achieved its highest at 1.1848, knowing that The pair started the session on a rising gap after ending last week’s trading at 1.1838 levels.

The markets are looking to Germany, the largest economy in the euro area, to reveal industrial sector data, with the release of the seasonally adjusted industrial production index reading, which may show a slowdown in growth to 4.5% compared to 8.9% last June, before we witness the Eurozone economies as a whole. The reading of the Sentex consumer confidence index, which shows the contraction of the contraction to a value of 11.4 compared to 13.4 last August.

Technical analysis

The EUR / USD pair tested the support level of the main ascending channel and returned to rise again, but the price finds a strong resistance ceiling at 1.1860, which needs to be breached to confirm the continuation of the main bullish trend and head towards our positive targets that start at 1.1916 and extend to 1.2045.

Therefore, we will continue suggesting the upside move for the upcoming period, provided that the price maintains stability above 1.1790, and most importantly, above 1.1760.

The expected trading range for today is between 1.1760 support and 1.1916 resistance.

The expected general trend for today: Bullish.