EURUSD analysis 21.09.2020

The single currency, the euro, fluctuated in a narrow range that tends to rise during the Asian session, to witness its retracement to the second session in three sessions from its lowest since August 12 against the US dollar on the cusp of unveiling the monthly report of the German central bank amid a scarcity of economic data at the beginning of this week from The US economy accepted the largest in the world and with an eye on Monday's highly anticipated speech by Fed Governor Jerome Powell and members of the Federal Open Market Committee.

At exactly 06:09 GMT, the euro pair rose against the US dollar by 0.19% to 1.1869 levels, compared to opening levels at 1.1847, after the pair achieved its highest level during the session's trading at 1.1872, while it reached its lowest level at 1.1840, knowing that The pair started the session on a rising gap after ending last week’s trading at 1.1840.

Investors are currently awaiting what Fed Governor Jerome Powell will talk via satellite, along with the rest of the FOMC members, about setting the rules for the Community Reinvestment Act, before we witness the Fed’s Deputy Governor and a member of the Federal Market Committee. The Open Lyle Brainard satellite on the Urban Institute Community Reinvestment Act.

Up to the participation of the President of the Federal Reserve Bank of New York and a member of the Federal Open Market Committee, John Williams, in a panel discussion entitled "Economic Justice: Examining the Financial Burden of Inequality and Seeking a Fair Recovery from Covid-19" in the virtual conference of the Black Caucus Foundation of the US Congress, also via satellite.

Technical analysis

The EUR / USD pair has shown sideways and narrow-range trading since last Friday, to continue fluctuating around the resistance of the descending intraday channel, and therefore, there is no change to the bearish trend scenario that depends on stability below 1.1900, waiting for the direction towards 1.1720, which represents our next main target.

Keep in mind that breaching 1.1900 and holding above it will stop the negative scenario and return the price to the main bullish channel again.

The expected trading range for today is between 1.1760 support and 1.1930 resistance.

The expected general trend for today: Bearish.