EUR/USD Mid-Session Technical Analysis for April 7, 2020

The Euro is picking up ground against the U.S. Dollar as riskier currencies continued to rebound on tentative hopes that lockdowns may be slowing the spread of the coronavirus in some countries.

Additionally, central banks have done a great job at alleviating the strain in the dollar markets with aggressive stimulus packages. Dollar borrowing costs in swap markets have retreated, with swap rates against the Euro falling to their lowest levels in more than a decade this week.

At 13:01 GMT, the EUR/USD is trading 1.0908, up 0.0116 or 1.08%.

In other news, Euro Zone finance ministers hope to agree on Tuesday on half a trillion Euros worth of economic aid to finance recovery from the coronavirus epidemic, a discussion that has sown divisions as the bloc struggles with the outbreak, Reuters reported.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through yesterday’s low at 1.0768 will signal a resumption of the selling pressure. The main trend will change to up on a trade through the last main top at 1.1147.

The minor trend is also down. However, a new minor bottom has formed at 1.0768.

The short-term range is 1.0636 to 1.1147. Its retracement zone at 1.0892 to 1.0831 is currently being tested. Trader reaction to this zone will determine the near-term direction of the EUR/USD.

The main range is 1.1496 to 1.0636. Its retracement zone at 1.1066 to 1.1167 is the next upside target area.

Daily Technical Forecast

Based on the early price action and the current price at 1.0908, the direction of the EUR/USD the rest of the session on Tuesday 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 the rally could possibly extend into a downtrending Gann angle at 1.1007.

Bearish Scenario

A sustained move under 1.0892 will signal the presence of sellers. This could lead to a labored break with potential support coming in at 1.0867, 1.0856 and 1.0831.

Taking out 1.0831 could trigger an acceleration to the downside with targets coming in at 1.0768 and 1.0746.