The euro currency fluctuated in a narrow range slanting back down during the Asian session to witness its bounce to the fourth session in five sessions from the top since the beginning of April this year against the US dollar on the threshold of developments and economic data expected today by the economies of the euro area and the US economy the largest economy in the world.
At 05:30 am GMT, the euro against the US dollar fell 0.19% to 1.0854 levels, which is the lowest level for the husband during the trading session, compared to the opening levels at 1.0875, while the pair achieved its highest level during the trading session at 1.0879.
The markets are looking to reveal a statistical reading of the ZEW economic sentiment index for Germany, the largest Eurozone and Eurozone economies as a whole, which may reflect a contraction in Germany and the region as a whole to 40.0 and 38.2 compared to 49.5 in March, otherwise, we followed yesterday. German Chancellor Angela Merkel has stated that her government is not planning to take further decisions to ease the closures imposed due to the outbreak of the Coruna virus.
On Monday, the German Chancellor, during her meeting with the leaders of her ruling party in Germany, stressed the importance of being careful in taking decisions to ease the closing procedures and not to ease the restrictions at once. It is noteworthy that Germany announced last week that some small companies would return to work in addition to allowing a number of companies to resume work during this week, And we would like to point out that Germany is ranked fifth in the world in terms of the number of coronavirus infections.
On the other hand, investors are currently awaiting the release of the housing market data by the US economy with the release of the Existing Home Sales Index, which may show a decline of 9.5% to 5.27 million homes compared to a 6.5% increase at 5.77 million homes in February, otherwise. Last Sunday, we followed US President Donald Trump reported that his administration was close to reaching an agreement on a new stimulus package.
In the same vein, both US House Speaker Nancy Pelos and US Treasury Secretary Stephen Mnuchin expressed optimism last week about a deal to increase funds in the loan program that aims to help small American companies withstand the consequences of the coronary virus outbreaks in the states United, where the number of people infected with the Coronavirus has reached 860 thousand confirmed cases.
It is reported that US President Trump recently announced his administration’s plan to gradually restart and operate the American economy, indicating that the global medical crisis may subside later, while its economic consequences remain, and we would like to point out that New York State Governor Andrew Como Noh noted last weekend that his mandate It may have exceeded the high level of death from coronavirus.
We also continued at the end of last week to report fewer daily deaths in Italy, Spain and the United Kingdom, according to the latest figures issued by the World Health Organization, which the US President recently froze his country’s funding, which was estimated at $ 400 million annually with his criticism of the organization His claim to being biased toward China has increased the number of cases infected with the Corona virus to nearly 2.32 million, and 157,970 people have died in 213 countries
The euro against the dollar pair opens trading today with a noticeable negative pressure to press the pivotal support level 1.0840, indicating the price trend to decline again, as the price found it difficult to return trading above the previously broken upward trend line, along with the negative pressure that SMA 50 constitutes, but needs The price for a daily close without the mentioned support to confirm the continuation of the decline during the coming period.
Therefore, we prefer stopping temporarily on the neutral until the price confirms its position in relation to the mentioned level, noting that stability below it will press the price to drop towards 1.0700 then 1.0640 levels as major negative targets, while consolidation above it represents the key to resuming the upside that exists its first main target At 1.0966.
The expected trading range for today is between 1.0740 support and 1.0940 resistance.
Expected trend for today: neutral.
