EURUSD analysis 05.08.2020

The single currency, the euro, fluctuated in a narrow, upward range during the Asian session, to witness its retracement of the third session from the lowest since July 27 against the US dollar before developments and economic data expected on Wednesday by the economies of the euro area and the US economy, the largest economy in the world.

At exactly 05:12 AM GMT, the euro pair rose against the US dollar by 0.11% to 1.1816 levels, compared to opening levels at 1.1803, after the pair achieved its highest level during the session's trading at 1.1822, while it reached its lowest level at 1.1793.

The markets are currently looking for Spain, the fourth-largest economy in the eurozone, to unveil the service PMI reading, which may show an expansion to a value of 52.3 compared to 50.2 last June, and this comes before we see Italy, the third-largest economy in the region, the release of the index reading. Managers The same, which may reflect an expansion to a value of 51.2 compared to a contraction of 46.4 in June.

This comes before we witness about France, the second-largest economy in the eurozone, the disclosure of the final reading of the services PMI index, which may show the stability of the expansion at 57.8, unchanged from the initial reading for the past month and compared to an expansion at 50.7 in June, before we witness the reading. The final index of the same index for Germany, the largest economy in the region, stabilized the breadth at 56.7, unchanged from the initial reading, and against a contraction of 47.3.

Up to the release of the final reading of the service purchasing managers' index for the economies of the euro area as a whole, which may reflect the stability of the expansion at 55.1, unchanged from the initial reading for the past month and against a contraction of 48.3 in June, before the retail sales index reading also revealed for the economies of the region as a whole. It reflects a slowdown in growth to 6.5%, compared to 17.8% in May.

On the other hand, investors are awaiting the US economy to reveal preliminary data for the labor market with the release of the index of change in private-sector jobs, which may reflect a slowdown in the pace of job creation to about 1,200 thousand jobs added compared to 2,369 thousand jobs in June, and this comes before Hours of release on Friday, the day after the monthly employment report, except for agricultural and unemployment rates, in addition to the average hourly earnings for the month of July

This comes before we witness the release of the merchandise trade balance index reading, which may explain the narrowing of the deficit to a value of $ 50.3 billion compared to $ 54.6 billion in June, and before the disclosure of the final reading of the Institute for Service Provisioning Index by Markit from the United States, which may reflect stability The contraction was at a value of 49.6, unchanged from what it was in the preliminary reading for the past month, and compared to a contraction of 47.9 in June.

Up to uncovering the index reading of the Service Provisioning Institute, whose importance lies in the fact that the service sector represents more than two-thirds of the United States' GDP, which may explain the contraction of the expansion to a value of 55.0 compared to 57.1 in June, and this comes before the president of the Cleveland Federal Reserve Bank FOMC member Loretta Meester on economic prospects at the virtual conference on Liberal Arts Macroeconomics.

Technical analysis

The EUR / USD pair shows further rise to surpass the 1.1800 barrier and settle above it, which supports the continuation of the expected bullish trend scenario in the intraday and short term, which targets 1.1908 then 1.1995 as next major stops, noting that the SMA 50 continues to support the suggested bullish wave.

On the other hand, we should note that a break of 1.1737 will stop the expected rise and pressure the price to make more bearish correction.

The expected trading range for today is between 1.1740 support and 1.1920 resistance.

The expected general trend for today: Bullish.