EUR/USD Mid-Session Technical Analysis for April 5, 2019

The Euro is edging higher on Friday shortly before the release of the U.S. Non-Farm Payrolls report at 12:30 GMT. The results of this report should set the tone for the rest of the session.

Here’s what investors are expecting. The Non-Farm Employment Change is expected to show the economy added 172,000 jobs in March. The Unemployment Rate is expected to remain at 3.8%. Average Hourly Earnings are expected to have risen by 0.3% for the month.

A bullish report should drive up U.S. Treasury yields, making the Euro a less-desirable asset, while increasing the appeal of the U.S. Dollar.

At 11:15 GMT, the EUR/USD is trading 1.1228, up 0.0007 or +0.07%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. Due to the large swings in the EUR/USD last month, a trade through 1.1177 will change the main trend to down. A move through 1.1448 will signal a resumption of the uptrend.

The minor trend is up. It turned up on Wednesday when buyers took out 1.1250. This also shifted momentum to the upside, but there has been no follow-through rally for two days. A trade through 1.1255 will indicate the buying is getting stronger. A move through 1.1183 will change the minor trend to down and shift momentum to the downside.

The major support is a long-term Fibonacci level at 1.1185.

The minor range is 1.1183 to 1.1255. Its 50% level or pivot at 1.1219 is acting like support.

The main range is 1.1448 to 1.1183. Its retracement zone at 1.1316 to 1.1347 is the primary upside target.

Daily Technical Forecast

Based on the early price action, the direction of the EUR/USD the rest of the session will likely be determined by trader reaction to the pivot at 1.1219.

Bullish Scenario

A sustained move over 1.1219 will indicate the presence of buyers. The first target is 1.1255. If taking out this level can generate enough upside momentum then look for a potential acceleration to the upside with 1.1316 the first upside target.

Bearish Scenario

A sustained move under 1.1219 will signal the presence of sellers. The first target is a downtrending Gann angle at 1.1208. Crossing to the weak side of this angle will indicate the selling is getting stronger. This could lead to a test of 1.1185 to 1.1183.

If 1.1183 fails as support then look for the selling to extend into 1.1177. Taking out this price will change the main trend to down. This could lead to an eventual test of the June 20, 2017 main bottom at 1.1118.