EUR/USD Mid-Session Technical Analysis for April 15, 2020

The Euro is down against the U.S. Dollar after reversing earlier gains amid growing concerns that the damage to the global economy from the coronavirus pandemic will be long and protracted, boosting the safe-haven appeal of the greenback.

The U.S. Dollar had weakened in the previous four consecutive sessions on cautious optimism that lockdowns were slowing the spread of the virus. But analysts warn that it remains unclear whether economies will recover quickly or whether it might take longer than expected.

At 11:51 GMT, the EUR/USD is trading 1.0914, down 0.0069 or -0.63%.

In other news, Euro area banks are getting capital relief worth 20 billion Euros ($21.9 billion) from the easing of macro-prudential requirements by national supervisors around the bloc, the European Central Bank said on Wednesday, welcoming the moves.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher.

The main trend will change to up on a trade through the last main top at 1.1147, while a move through 1.0768 will signal a resumption of the downtrend.

The minor trend is up. This is controlling the momentum. A trade through 1.0893 will change the minor trend to down. A new minor top was formed at 1.0991.

The short-term range is 1.1147 to 1.0768. Its retracement zone at 1.0958 to 1.1002 is resistance. This zone stopped the rally at 1.0991 earlier today.

The main range is 1.0636 to 1.1147. Its retracement zone at 1.0892 to 1.0831 is potential support. It’s also controlling the near-term direction of the EUR/USD.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the EUR/USD the rest of the session on Wednesday is likely to be determined by trader reaction to the short-term 50% level at 1.0958.

Bearish Scenario

A sustained move under 1.0958 will indicate the presence of sellers. The first downside target is a support cluster at 1.0893 to 1.0892.

Taking out 1.0892 will indicate the selling pressure is getting stronger. This could trigger a further break into the Fibonacci level at 1.0831. Watch for a bounce on the first test of this level. If it fails then look for a possible acceleration to the downside with the next target the main bottom at 1.0768.

Bullish Scenario

Holding the 50% level at 1.0892 will signal the return of counter-trend buyers. If this move creates enough upside momentum then look for a potential drive into the 50% level at 1.0958.

Overcoming 1.0958 could lead to a retest of today’s intraday high at 1.0991, followed by the short-term Fibonacci level at 1.1002.