EURUSD analysis 27.10.2020

The single currency, the euro, fluctuated in a narrow range sloping to an upside during the Asian session, to witness its retracement to the sixth session in nine sessions from its lowest since late September against the US dollar on the cusp of economic developments and data expected today, Tuesday, by the economies of the euro area and the US economy, the largest economy In the world.
 
At 06:12 AM GMT, the euro pair rose against the US dollar by 0.14% to 1.1827 levels, compared to the opening levels at 1.1810, after the pair achieved its highest level during the session's trading at 1.1828, while the lowest level was at 1.1807.
 
Investors are looking to the Spanish economy to reveal labor market data with the release of the unemployment rate index reading, which may show a rise to 16.0% compared to 15.3% in the second quarter last, and this comes before we witness about the economies of the euro area as a whole, the disclosure of the annual reading of the private loans index It may reflect an acceleration of growth to 3.1%, compared to 3.0% last August.
 
This comes in conjunction with the release of the annual reading of the M-3 money supply index also from the economies of the euro area as a whole, which may show an acceleration of growth to 9.6% compared to 9.5% in August. During this week, which aims to finalize an agreement on future trade relations between Brussels and London by the middle of next month.
 
On the other hand, investors await the US economy to reveal a reading of the durable goods orders index, which represents about half of consumer spending, which accounts for more than two-thirds of the gross domestic product in the United States, and which may reflect the stability of the pace of growth at 0.5% during September, while The core reading of the same index may show the pace of growth slowing to 0.3%, from 0.6% in August.
 
This comes before we witness the disclosure of the US housing market data with the release of the house price index reading, which may indicate a slowdown in growth to 0.7% compared to 1.0% last July, in conjunction with the release of the Standard & Poor's Composite-20 home price reading, which may appear. Growth also slowed to 0.5% from 0.6% in July, while the annual reading of the same index may reflect an acceleration of growth to 4.2%, compared to 3.9% in July.

Technical analysis

 
The euro against the dollar was unable to surpass the moving average 50, which formed a strong support ground against the price, to start providing positive trades now, and by carefully looking at the chart, we find that recent trades are confined to a bullish triangular flag pattern that supports the chances of resuming the main bullish trend, especially since Stochastic oscillator is now providing positive signals.
 
Thus, the aforementioned factors encourage us to suggest the negative scenario stops and turn towards the upside again, starting the positive targets at 1.1900 and extending to 1.2011, bearing in mind that breaking 1.1805 will stop the expected rise and pressurize the price to test 1.1720 before any new attempt to rise.
 
The expected trading range for today is between 1.1750 support and 1.1920 resistance
 
The expected general trend for today: Bullish