EUR/USD Mid-Session Technical Analysis for April 24, 2020

The Euro is trading higher against the U.S. Dollar, reversing early losses, after European Union (EU) leaders agreed to create a fund that could raise at least 1 trillion Euros ($1.1 trillion) to rebuild regional economies ravaged by the coronavirus pandemic.

“This fund shall be of a sufficient magnitude, targeted towards the sectors and geographical parts of Europe most affected, and be dedicated to dealing with this unprecedented crisis,” leaders of the 27 EU countries said in a statement after they met via video conference on Thursday.

The heads of the EU governments asked officials at the European Commission to come up with detailed proposals “urgently” that will include how the recovery fund will relate to the bloc’s budget for 2021-2027, they added.

At 11:58 GMT, the EUR/USD is trading 1.0795, up 0.0018 or +0.17%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.0991 will change the main trend to up. A move through the intraday low at 1.0727 will signal a resumption of the downtrend.

The minor trend is also down. A trade through 1.0885 and 1.0897 will change the minor trend to up. This will also shift momentum to the upside.

The main range is 1.0636 to 1.1147. Its retracement zone at 1.0831 to 1.0892 is the next upside target zone. This is also resistance.

Daily Technical Forecast

Based on the early price action and the current price at 1.0795, the direction of the EUR/USD the rest of the session on Friday is likely to be determined by trader reaction to yesterday’s close at 1.0776.

Bullish Scenario

A sustained move over 1.0776 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to extend into the Fibonacci level at 1.0831, followed by a downtrending Gann angle at 1.0851.

Bearish Scenario

A sustained move under 1.0776 will signal the presence of sellers. The first downside targets are a pair of Gann angles at 1.0756 and 1.0747.

Crossing to the weak side of 1.0747 should lead to a test of 1.0727. If this fails then look for the selling to extend into an uptrending at 1.0696. This is the last potential support angle before the 1.0636 main bottom.

Side Notes

A close over 1.0776 will produce a closing price reversal bottom. If confirmed on Monday, this could trigger the start of a 2 to 3 day counter-trend rally.