EUR/USD Mid-Session Technical Analysis for April 20, 2020

The Euro is trading slightly lower on Monday after an early rally attempt failed to draw enough buying interest to sustain the rally. The price action suggests investors are waiting for news or some kind of catalyst to trigger a breakout of its short-term trading range.

Helping to put a lid on the Euro were concerns about global growth, which boosted the safe-haven appeal of the greenback.

At 12:18 GMT, the EUR/USD is trading 1.0862, down 0.0013 or -0.12%.

In economic news, the Euro Zone’s trade surplus with the rest of the world grew in February, with a decline in imports from China as well as sharply lower energy needs because of mild winter weather.

The Euro Zone’s current account surplus widened to 40 billion Euros ($43.45 billion) in February from 32 billion Euros one month earlier, the European Central Bank said on Monday.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The main trend will change to up on a move through the last swing top at 1.0991. A trade through 1.0768 will signal a resumption of the downtrend.

The minor trend is also down. A new minor bottom has formed at 1.0812.

The main range is 1.0636 to 1.1147. The EUR/USD is currently trading inside its retracement zone at 1.0892 to 1.0831. This zone is controlling the near-term direction of the Forex pair.

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 selling at 1.0991 on April 15.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 1.0862, 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 1.0892.

Bullish Scenario

A sustained move over 1.0892 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for the rally to possibly extend into the next 50% level at 1.0958.

Bearish Scenario

A sustained move under 1.0892 will signal the presence of sellers. This could trigger a further decline into a Fib level at 1.0831, followed by main bottoms at 1.0812 and 1.0768.