The euro currency fluctuated in a narrow range tilted to the upside during the Asian session to witness its bounce for the third consecutive session from the lowest since April 21, 2017 against the US dollar on the threshold of developments and economic data expected today Wednesday by Germany, the largest economies of the euro area and the American economy the largest economy In the world, and with investors evaluating the incentive to face the repercussions of spreading the Corona virus globally.
At exactly 05:09 am GMT, the euro pair rose against the US dollar by 0.12% to 1.0801 levels compared to the opening levels at 1.0788 after the pair achieved its highest level during the trading session at 1.0824, while achieving the lowest at 1.0761.
The markets are looking to Germany to reveal the IFO reading of the business climate, which may appear widening to 87.9 compared to 87.7 last February. Otherwise, we followed yesterday. The European Central Bank member and Governor of the Bank of France Francois Villeroy expressed that the European Central Bank will provide Liquidity is necessary for European companies and it may interfere during the current week or as soon as possible to purchase commercial papers for companies, except for public companies.
On the other hand, investors are currently awaiting the US economy to disclose the reading of the durable goods orders index, which represents about half of consumer spending, which represents more than two-thirds of the gross domestic product in the United States, which may reflect the widening of the decline to 1.0% compared to 0.2% in January. / January, while the core reading of the same index may show a 0.4% decline compared to a 0.8% increase in January.
This comes before we witness the disclosure of housing market data with the release of the house price index, which may explain the slowdown in the pace of growth to 0.4% compared to 0.6% last December, and this comes in conjunction with the aspiration of investors to reach the poles of US policy both the ruling Republican Party And Democrat for an agreement about the fiscal stimulus package that was proposed by the US administration recently, which is estimated at $ 2 trillion.
Other than that, we followed last Monday the Federal Reserve announced an open asset purchase program and bond purchases from companies directly, which stimulated risk appetite among investors in financial markets in the shadow of industrial action. Monetary policy in the world's largest economy and in major global economies to expand In stimulation to support financial markets in the face of the repercussions of the outbreak of the Coronavirus.
The euro against the dollar ended yesterday's trading above the level of 1.0770, to maintain the bullish corrective scenario present for the coming period, regularly inside the bullish intraday channel that appears in the image, and gets a positive crossover signal through the stochastic indicator.
Consequently, these factors encourage us to favor the bullish trend over the intraday basis, whose targets begin to breach the 1.0840 level to confirm opening the way towards heading towards 1.0966 as a next station, noting that a break of 1.0760 will put the price under negative pressure aimed at visiting areas of 1.0637 initially.
The expected trading range for today is between 1.0720 support and 1.0920 resistance.
Expected trend for today: bullish.