EUR/USD Mid-Session Technical Analysis for April 29, 2020

The Euro is edging higher against the U.S. Dollar on Wednesday as investors lighten up short positions ahead of today’s U.S. Federal Reserve monetary policy announcements at 18:00 GMT and the European Central Bank decisions on Thursday.

Euro investors will be watching the Fed for clues as to its future policy path after it moved to support the economy against the devastating effects of the coronavirus with aggressive interest rate cuts, bond buying and unprecedented support for the credit markets.

At 11:44 GMT, the EUR/USD is trading 1.0850, up 0.0031 or +0.28%.

Fed Chairman Jerome Powell will hold a press conference at 18:30 GMT. With the Fed expected to keep policy unchanged, investors are hoping Powell reveals something about how long and how deep the economic devastation might go on.

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 1.0991. A move through the swing bottom at 1.0727 will signal a resumption of the downtrend.

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

The minor range is 1.0727 to 1.0888. Its 50% level or pivot at 1.0808 is providing support.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 1.0850, the direction of the EUR/USD the rest of the session on Wednesday is likely to be determined by trader reaction to the major Fibonacci level at 1.0831 and the minor pivot at 1.0808.

Bullish Scenario

A sustained move over 1.0831 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into 1.0888 to 1.0897. The latter is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 1.0808 will signal the presence of sellers. This is a potential trigger point for an acceleration to the downside. This could lead to a steep drop since there is no support until 1.0727.