The single currency, the euro, fluctuated in a narrow range that tends to decline during the Asian session against the US dollar due to the developments and economic data expected today, Tuesday, by the economies of the euro area and the US economy, the largest in the world, which includes the first half of the semi-annual testimony of Federal Reserve Governor Jerome Powell before Congress American.
At 06:35 AM GMT, the euro pair fell against the US dollar by 0.09% to 1.1760 levels, compared to the opening levels at 1.1771, after the pair achieved its lowest level during the session's trading at 1.1753, while it achieved its highest at 1.1774.
The markets are looking to the economies of the euro area as a whole to reveal a reading of consumer confidence, which may reflect the stability of the contraction at a value of 15 during September, otherwise, we followed yesterday the European Central Bank Governor Christine Lagarde expressed that the current uncertainty requires careful evaluation. For the data received, including the exchange rate for the euro, and that the European Central Council believes that the economy still needs support.
On the other hand, investors are awaiting the US economy, the largest industrial country in the world, for the release of the Richmond Industrial Index, which may reflect a contraction of the expansion to a value of 12 compared to 18 last August, in conjunction with the disclosure of housing market data with the release of the annual reading of the index. House prices, which may show a slowdown in growth to 2.4% to about 6.05 million homes, compared to 24.7% at 5.86 million homes last July.
This comes before we witness the first half of the semi-annual testimony of Federal Reserve Governor Jerome Powell before the US Congress, specifically before the House Financial Services Committee in Washington on the "CARES" Act, and Powell is expected to testify before the House Select Committee tomorrow. Wednesday, about the economic effects of the Corona pandemic, before he gave the second half of his testimony, tomorrow, Thursday, to the Senate Banking Committee.
We would like to point out that Treasury Secretary Stephen Mnuchin will also deliver his testimony on Thursday, with Powell, about the CARES Act before Congress. The repercussions of the Corona pandemic, with his assertion that there is a need for more fiscal and monetary policy to prevent the health crisis from causing long-term damage to the economy.
It is reported that the Federal Open Market Committee meeting held last week on September 15-16, during which interest rates were kept between zero and 0.25%, the program to purchase Treasury bonds by $ 80 billion per month and mortgage bonds by $ 40. At least monthly, with the disclosure at the time of the expectations of members of the Federal Commission for growth rates, inflation and unemployment, in addition to the future of interest rates for the next three years.
The EUR / USD pair succeeded in reaching a difference of a few points from our awaited target at 1.1720, and some slight bullish tendency appears affected by the positivity of the stochastic indicator, noting that the price is moving within the descending corrective descending channel that appears in the image, which supports the chances of surpassing the aforementioned level and paving the way for the trend towards Next corrective level up to 1.1540.
From here, we expect the bearish tendency to continue during the upcoming sessions, supported by the negative pressure formed by the MA 50, bearing in mind that the expected decline will remain intact unless the price pushes to breach 1.1860 then 1.1910 and hold above it.
The expected trading range for today is between 1.1670 support and 1.1840 resistance.
The expected general trend for today: Bearish.