EURUSD analysis 11.09.2020

The single currency, the euro, fluctuated in a narrow, upward range during the Asian session, to witness its retracement for the third consecutive session since the 12th of August against the US dollar on the cusp of developments and expected economic data on Friday from the economies of the euro area and the US economy, the largest in the world, which Include Eurogroup meetings later today via satellite in Brussels.

At 06:27 AM GMT, the euro pair rose against the US dollar by 0.16% to 1.1834 levels, compared to opening levels at 1.1815, after the pair achieved its highest level during the session's trading at 1.1840, while it reached its lowest level at 1.1813.

The markets are waiting for Germany to reveal inflation data with the release of the final reading of the consumer price index, which may confirm a contraction of 0.1%, unchanged from the previous initial reading for the month of August and against a contraction of 0.5% last July, in conjunction with the release of the reading. The wholesale inventories price index is also for Germany, which may indicate stable growth at 0.5% during August.

Up to the participation of Deutsche Bundesbank President Jens Weidmann in a panel discussion at a virtual banking conference hosted by the German central bank, before we witness Italy, the third largest economy in the eurozone, the labor market data disclosure with the release of the unemployment rate index reading, which may reflect Down to 8.4% from 8.9% in the first quarter last.

This comes in conjunction with the activities of the Eurogroup meetings, which are attended by the finance ministers of the member states in the region, the Commissioner for Economic and Monetary Affairs and the European Central Governorate, which discusses many financial issues, and hours after the end of the activities of the European Central Meeting, which kept monetary policy makers at the European Central Interest rates are at zero levels, which was in line with expectations.

Other than that, the markets are closely watching the developments of the Brexit file after it entered into negotiations on the reformulation of future relations between the two parties following the implementation of the exit on January 31, in a state of stumbling due to the conflicting views between the two sides in several Main points, most notably immigration and the customs union, which opens the way for Britain to leave without an agreement with the European Union on October 15.

On the other hand, investors are currently awaiting the US economy to disclose inflation data with the release of the consumer price index reading, which may reflect a slowdown in growth to 0.3% compared to 0.6% in July, and the core reading of the same index may also indicate a slowdown in growth to 0.2% against 0.6%, and the annual reading of the index may reflect the stability of growth at 1.6%, while the annual core reading of the index may show an acceleration of growth to 1.2% compared to 1.0%.

Technical analysis

The euro versus dollar ended yesterday's trading negatively without supporting the main ascending channel, as it showed mixed trades in the past sessions, which keeps the bearish trend scenario valid and effective for the upcoming period, awaiting further decline to visit 1.1720, which represents the first negative target.

Thus, a bearish bias will be likely for today, noting that breaching 1.1840 and holding a daily close above it will stop the negative scenario and lead the price to return to the main bullish path again.

The expected trading range for today is between 1.1720 support and 1.1900 resistance.

The expected general trend for today: Bearish.