EUR/USD Mid-Session Technical Analysis for April 13, 2020

The Euro is trading lower against the U.S. Dollar on Monday for no apparent reason other than thin trading conditions due to the Easter Monday holiday in parts of Europe. There are no major economic releases in either Europe or the United States, which usually means the banks or other major players are on the sidelines, leaving the Euro vulnerable to volatile swings.

At 11:30 GMT, the EUR/USD is trading 1.0919, down 0.0018 or -0.17%.

The news about the coronavirus epidemic in the region is actually a little better today with data showing the spread has slowed in some of the worst-hit countries, with Spain readying Monday to reopen parts of its economy as governments grapple with a once-in-a-century recession.

Furthermore, Italy, France and the U.S. have all reported a drop in COVID-19 deaths in the past 24 hours – with Italy, the European nation most afflicted by the disease, reporting its lowest toll in more than three weeks.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The main trend will change to up on a trade through 1.1147. A move through 1.0768 will signal a resumption of the downtrend.

The minor range is 1.1147 to 1.0768. Its 50% level or pivot at 1.0958 is acting like resistance.

The short-term range is 1.0636 to 1.1147. Its retracement zone at 1.0892 to 1.0831 is potential support.

On the upside, the next retracement zone target comes in at 1.1066 to 1.1167.

Daily Technical Forecast

Based on the early price action and the current price at 1.0919, the direction of the EUR/USD the rest of the session on Monday is likely to be determined by trader reaction to the 50% level at 1.0958.

Bearish Scenario

A sustained move under 1.0958 will indicate the presence of sellers. Crossing to the weak side of a pair of downtrending Gann angles at 1.0936 and 1.0927 will indicate the selling is getting stronger. This could lead to a test of another 50% level at 1.0892.

If 1.0892 fails as support then look for the selling to possibly extend into the next uptrending Gann angle at 1.0868. This is a potential trigger point for an acceleration into the Fibonacci level at 1.0831.

Bullish Scenario

A sustained move over 1.0958 will signal the presence of buyers. Taking out the intraday high could trigger an acceleration to the upside with the next target angle coming in at 1.1037.

Side Notes

The EUR/USD is basically trapped inside a pair of 50% levels at 1.0958 to 1.0892. This levels are controlling the near-term direction of the Forex pair.