EURUSD analysis 24.09.2020

The single currency, the euro, fluctuated in a narrow range that tends to decline during the Asian session, to witness the lowest since July 27 against the US dollar on the developments and economic data expected today, Thursday, by the economies of the euro area and the US economy, which include the actions of the second half of the semi-annual certificate of a bank governor Federal Reserve Jerome Powell and US Treasury Secretary Stephen Mnuchin before Congress in Washington.

At 06:52 AM GMT, the euro pair fell against the US dollar by 0.03% to 1.1657 levels, compared to opening levels at 1.1660, after the pair achieved an eight-week low at 1.1645, while it achieved its highest during the session's trading at 1.1680.

The markets are looking for Germany, the largest economy in the euro area, to unveil the IFO business climate index reading, which may show an expansion to 93.9 compared to 92.6 in August, and the same index reading for expectations may show an expansion to 98.0 versus 97.5, reflecting the index reading. The same for the current assessments is also expanding to a value of 89.5 compared to 87.9, in conjunction with the European Central Bank unveiling its monthly bulletin.

On the other hand, investors are currently awaiting the US economy for the release of the aid claims index reading for the past week on September 18th, which may reflect a decline of 15,000 requests to 845,000 applications compared to 860,000 requests in the previous weekly reading. The continuing aid for the past week, on the 11th of this month, decreased by 289 thousand applications to 12,339 thousand applications compared to 12,628 thousand applications.

This coincides with the launch of the second half of the bi-annual certification of Federal Reserve Governor Jerome Powell as well as with Treasury Secretary Stephen Mnuchin before the Senate Banking Committee on the "CARES" Act, and this comes hours after Powell testified before the House of Representatives And through which he threw the ball in the Congress court to provide support to companies affected by the aftershocks of the Corona pandemic.

In another context, the markets are looking to reveal the housing market data with the release of the new home sales index reading, which may indicate a 4.0% decline to about 890 thousand homes compared to a 16.6% rise at 901 thousand homes in July, leading to the speech of the Federal Open Market Committee member and chairman New York Federal Reserve John Williams Opening remarks at the New York Fed conference on economic inequality.

Technical analysis

The EUR / USD pair stabilizes near the support of the descending corrective channel, and the price is under continuous negative pressure coming from the EMA50, waiting for the resumption of negative trades to head towards our next main target that reaches 1.1540.

In general, we will continue suggesting the downside trend for the coming period as long as the price remains below 1.1720, as breaching this level will stop the expected negative pressure and lead the price to start recovery attempts targeting 1.1840 levels initially.

The expected trading range for today is between 1.1580 support and 1.1720 resistance.

The expected general trend for today: Bearish.