EURUSD analysis 24.11.2020

The single currency, the euro, fluctuated in a narrow, upward sloping range during the Asian session, to witness its rebound to the tenth session in fourteen sessions from the lowest since July 24 against the US dollar on the cusp of developments and economic data expected today, Tuesday, by the largest economy in the euro area, Germany and the economy. The US is the largest economy in the world.

At 06:31 AM GMT, the euro pair rose against the US dollar by 0.09% to 1.1852 levels compared to the opening levels at 1.1841, after the pair achieved its highest level during the session's trading at 1.1855, while it reached its lowest level at 1.1837.

The markets are looking to Germany to unveil the final reading of the GDP, which may confirm the growth of 8.2% as indicated by the preliminary reading for the third quarter and against a contraction of 9.7% in the last second quarter, and this comes before we also witness from Germany the disclosure of the statistical reading of the GFK index of confidence Consumers, which may reflect a contraction of the breadth, to a value of 90.3 compared to 92.7 in last October.

On the other hand, investors are currently awaiting the US economy to unveil the housing market data, with the release of the house price index reading, which may indicate a slowdown in growth to 0.8% compared to 1.5% last August, in conjunction with the release of the annual reading of the S&P Composite Index - 20 for house prices, which may show growth accelerating to 5.3%, compared to 5.2% in the previous annual reading for August.

Down to the disclosure by the largest industrial country in the world of industrial sector data with the release of the Richmond Industrial Index reading, which may reflect a contraction of the expansion to a value of 20 versus 29 in October, in conjunction with the disclosure of the consumer confidence index reading, which may also appear. The breadth narrowed to 97.7, from 100.9 in October.

Other than that, we have just followed the announcement of the US Public Services Administration that Joe Biden has won the 2020 US presidential elections, to become the Democratic Party’s candidate for the forty-sixth US president to succeed Republican President Donald Trump, whose term ends on January 20 of next year 2021, the matter The next is the launch of a formal transition of power in the United States.

We also followed the report, which dealt with the fact that Biden is planning to nominate former Federal Reserve governor Janet Yellen for the position of Treasury Secretary, and this comes in the wake of the rare clash that occurred between the Treasury Department under the Trump administration with the Federal Reserve over the extension of the Fed's pandemic emergency lending program, especially after Treasury Secretary Stephen Mnuchin refused to extend the emergency loan programs created with the Federal Reserve.

Technical analysis

The euro versus dollar ended trading yesterday above the support of the bullish intraday channel after the sharp decline that it witnessed in the last sessions, which maintains the bullish trend scenario valid and effective for the upcoming period, which mainly targets 1.2011.

Note that holding above 1.1835 is important to achieve the awaited targets, as breaking it will put the price under negative pressure and an expected drop towards 1.1720 areas before any new attempt to rise.

The expected trading range for today is between 1.1780 support and 1.1940 resistance

The expected general trend for today: Bullish