EURUSD analysis 19.11.2020

The single currency, the euro, fluctuated in a narrow range that tends to decline during the Asian session, to witness its retracement of the third session from its highest since the ninth of November, when it tested its highest since the second of September against the US dollar on the cusp of developments and expected economic data on Thursday Before the economies of the eurozone as a whole and the US economy is the largest in the world, which includes ECB conservative Christine Lagarde's speech online.

At exactly 06:45 am GMT, the euro pair fell against the US dollar by 0.05% to 1.1848 levels compared to the opening levels at 1.1854, after the pair achieved its lowest level during the session's trading at 1.1832, while it achieved its highest at 1.1858, knowing that The pair opened the session on a rising gap, after ending yesterday's trading at 1.1853 levels.

The markets are looking to the economies of the euro area to reveal the seasonally adjusted reading of the current account index, which may reflect a contraction of the surplus to an amount of 18.1 billion euros compared to 19.9 billion euros last August, while the seasonally adjusted reading of the same index may show the expansion of the surplus to what It is worth 27.6 billion euros, compared to 21.8 billion euros in August.

According to the European Central Bank's speech, Christine Lagarde, at an event hosted by the Women’s Forum. Yesterday, I expressed that the EU considers the ongoing talks the last chance to reach an agreement.

On the other hand, investors in the US economy are awaiting the release of the aid requests reading for last week on the 13th of this month, which may reflect a decrease of two thousand requests to 707 thousand applications, and this comes in conjunction with the disclosure also by the largest industrial country in the world of sector data Industrials, with the release of the Philadelphia Industrial Index, which may reflect a contraction of the breadth to 22.0, compared to 32.3 last October.

Up to the disclosure of housing market data, with the release of the Existing Home Sales Index reading, which may show a 1.2% decline to about 6.45 million homes, compared to a 9.4% rise at 6.54 million homes last September, in conjunction with the release of the leading indicators reading that may reflect stability Growth at 0.7%, little change from the previous reading for September.

Technical analysis

The EUR / USD pair rebounded downwards after reaching the 1.1900 barrier yesterday, to test the support for the ascending channel that appears in the image, noting that the EMA 50 meets with this support to add more strength to it, while the stochastic indicator reaches the oversold areas now.

Consequently, these factors encourage us to suggest the bullish bias for the upcoming period, awaiting the direction towards 1.2011, which represents our next main target, bearing in mind that breaking 1.1825 will stop the expected rise and pressurize the price to decline towards 1.1720 before any new attempt to rise.

The expected trading range for today is between 1.1770 support and 1.1950 resistance.

The expected general trend for today: Bullish.