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EURUSD analysis 03.06.2020

The single currency, the euro, rose during the Asian session, clarifying its highest level since March 16, and was preparing for its longest daily gains march since September 2009 against the US dollar, on the cusp of developments and economic data expected today Wednesday by the economies of the euro area and the economy The American is the largest economy in the world.


At exactly 04:52 AM GMT, the euro pair rose against the US dollar by 0.31% to 1.1205 levels, compared to the opening levels at 1.1170 after the pair achieved its highest level during the trading session at 1.1211, while achieving the lowest at 1.1167.


The markets are looking by Spain, the fourth euro zone economy, to reveal the services PMI reading, which may show the contraction shrinking to 24.7 compared to 7.1 last April, before we witness from Italy the third largest economy in the region, the reading of the index itself, which may It also reflected a contraction in contraction of 26.2 compared to 10.8 in April.


This comes before revealing the final reading of the services PMI for France, the second largest economy in the euro area and Germany, which may show the stability of the contraction at 29.4 and 31.4 unchanged from the initial reading for the past month and against a contraction at 10.2 and 16.2 in April, before that Germany is also witnessing the release of the unemployment change index, which may reflect an increase of about 188 thousand, compared to a rise of 373 thousand in April.


Investors are also awaiting the disclosure of labor market data and the release of the unemployment rate reading for Italy, which may explain an increase to 9.2% compared to 8.4% in April, before witnessing the economies of the euro area as a whole. Disclosure of the final reading of the services PMI, which may explain the stability of deflation At 28.7, unchanged from the previous reading for the past month and against a contraction at 12.0 in April.


To reveal the inflation data for the euro area economies with the release of the producer price index, which is an initial indication of inflationary pressures, which may reflect the widening of the deflation to 1.8% compared to 1.5% in March, as the annual reading of the same indicator may show the widening of the deflation to 4.0% compared to 2.8 %, In conjunction with the release of the unemployment rates reading for the economies of the region as a whole, which may reflect an increase to 8.2%, compared to 7.4% in April.


On the other hand, investors are currently awaiting by the US economy to disclose preliminary data for the labor market with the release of the index of change in private sector jobs, which may reflect the loss of 9,000 jobs compared to the loss of 20,236 thousand jobs in April, and this comes hours before the disclosure after Tomorrow, Friday, the monthly report for jobs except agricultural and unemployment rates, in addition to the hourly rate for the month of May.


This comes before we witness the final reading of the Markit Service Supply Institute index by Markit for the United States, which may reflect a contraction of shrinkage to 37.2 compared to a value of 36.9 in the initial reading for the past month and against a contraction at 26.7 in April, and before revealing a reading of the index Factory orders, which may show a widening decline to 13.7% compared to 10.3 in March.


To reveal the reading of the Institute for Service Supply index that is important in that the service sector represents more than two-thirds of the gross domestic product of the United States, which may explain the contraction shrinkage to 44.2 compared to 41.8 in April, otherwise, according to the latest figures issued by The World Health Organization has increased the number of cases infected with the Corona virus by more than 6.19 million, and 376,320 people have died in 216 countries.


In another context, the markets assessed the possibilities of the US military deploying in the United States to suppress the strikes and violent demonstrations in the cities over the killing of George Floyd of African descent at the hands of the American police, after the curfew failed to contain the massive protests that included violence and looting with the demonstrators taking to the streets after weeks Closings during the Corona pandemic, which caused millions to lose their jobs.


It is worth noting that these extended strikes taking place in America have reinforced concern about the coronary virus outbreak more broadly among these human groupings and restored concerns about the chances of recovery for the economy that is just emerging from the Great Depression in the thirties of the last century, and Trump on Monday criticized the deans of the states American, while describing them as weak and that they must take more stringent measures in dealing with the protests.

Technical analysis


The euro against the dollar succeeded in confirming the breach of the 1.1170 level after closing the daily candle above it, to support the continuation of the bullish trend scenario effectively during the coming period, opening the way towards heading towards our next main target that reaches 1.1295.


Therefore, we await further gains today with support from the EMA50, noting that stability above 1.1170 is important to continue the suggested bullish direction.


The expected trading range for today is between 1.1100 support and 1.1290 resistance.


Expected trend for today: bullish.

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