EUR/USD Forex Technical Analysis – Strengthens Over 1.0892, Weakens Under 1.0831
The Euro is trading nearly flat against the U.S. Dollar late Tuesday after clawing back earlier losses. The dollar was strengthened earlier in the day as investors sought the safety of the world’s most liquid currency as a slump in oil prices sapped appetite for risky assets.
The Euro dropped about 0.1% lower early despite a survey released on Tuesday that showed the mood among German investors improved in April as concerns about the impact of the pandemic on Europe’s largest economy seemed to have eased.
At 19:48 GMT, the EUR/USD is trading 1.0860, down 0.0004 or -0.04%.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart, but the EUR/USD has been holding steady since the minor closing price reversal bottom at 1.0812 last Friday.
A trade through 1.0768 will signal a resumption of the downtrend. The main trend will change to up on a move through 1.0991.
The minor trend is also down. A trade through 1.0897 will change the minor trend to up. This will also shift momentum to the upside.
The intermediate range is 1.0636 to 1.1147. The EUR/USD is currently trading inside its retracement zone at 1.0892 to 1.0831. The direction of the Forex pair the rest of the week is likely to be determined by trader reaction to this area.
The short-term range is 1.1147 to 1.0768. Its retracement zone at 1.0958 to 1.1002 is the next potential upside target. Don’t expect a meaningful rally to develop until buyers take out this area.
Daily Swing Chart Technical Forecast
The key upside targets are the 50% level at 1.0892 and the minor top at 1.0897. The latter is a potential trigger point for an acceleration into the next 50% level at 1.0958.
On the downside, a trade through the Fibonacci level at 1.0831 will be the first sign of weakness. Taking out the minor bottom at 1.0812 will reestablish the downtrend. This could trigger an acceleration into the next main bottom at 1.0768. If this level fails then look for a steep drop with the next major target the March 23 main bottom at 1.0636.