EURUSD is consolidating above the lowest level in two years
Last Updated on July 30, 2020
USD rose on the European market on Tuesday against a basket of global currencies, on its way towards achieving the first gain during last eight days, EURUSD consolidates above the lowest level in two years recorded earlier in yesterday’s trading, this comes ahead of the release of important data on levels of confidence in the largest economy in The world during July, just before the start of the monetary policy meeting of Federal Reserve.
The dollar index rose about 0.5% to the level of 94.01 points, and the level of opening trading today at 93.58 points, and recorded the lowest level at 93.49 points.
The index ended yesterday’s trading down 0.75%, in the seventh consecutive daily loss, and recorded the lowest level in two years at 93.48 points, due to the decline in the yield on US treasury bonds for ten years.
The index incurred last week, the largest weekly loss in four months, due to weak demand for the currency as the best alternative investment, in light of strong sentiment that controls investors.
The morale is attributed to the historic financial stimulus agreement in Europe, the positive news about vaccines nominated for Coronavirus prevention, in addition to the release of data indicating that most of the global economies are recovering quickly from the Coronavirus pandemic.
EURUSD Tehnical analysis
EURUSD trades stable around the 1.1760 level after yesterday’s strong bullish rally, which is affected by the current stochastic negativity, pending the acquisition of a positive momentum enough to push the price to resume the main bullish trend, whose next target is located at 1.1815.
Consequently, we continue to favour the bullish trend for the upcoming period, provided stability above 1.1675, as breaking this level will put the price under negative pressure targeting testing 1.1550 areas and it may extend to 1.1450 before any new attempt to rise.
The expected trading range for today is between 1.1680 support and 1.1850 resistance
Expected trend for today: bullish
USA economic data
Investors are waiting later in the day important data on consumer confidence levels in the American economy during the current month. Negative data undermine the high sentiments in the markets and thus expand the recovery of the American currency levels against a basket of global currencies.
By 14:00 Greenwich CB index to measure consumer confidence during July is expected 94.0 points from 98.1 points in June.
The Federal Reserve’s meeting activities will start later in the day to discuss appropriate monetary policy for the developments of the American economy, with decisions to be issued tomorrow, Wednesday, amid the full possibilities for interest rates to remain unchanged at 0.25%.
Investors are focusing on the statement of monetary policy and the statements of “Jerome Powell,” President of the Federal Reserve, in search of new evidence concerning any new stimulus plans for the American Central, which aims to support the largest economy in the world in facing the increasing risks, especially the damage caused by Coronavirus.
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