EUR/USD Mid-Session Technical Analysis for April 8, 2020Based on the early price action and the current price at 1.0862, the direction of the EUR/USD the rest of the session on Wednesday is likely to be determined by trader reaction to the 50% level at 1.0892 and the downtrending Gann angle at 1.0827.
The Euro is edging lower against the U.S. Dollar on Wednesday as investors move money back into the safe-haven greenback on renewed coronavirus concerns.
Earlier this week, the Euro was supported by optimism that new coronavirus cases were turning for the better, but today’s price action indicates that investors are still concerned about the extent of the economic fallout which is just starting to show up in the economic data.
At 10:14 GMT, the EUR/USD is trading 1.0862, down 0.0029 or -0.27%.
In other news, European Union finance ministers failed to agree in all-night talks on more support for their coronavirus-hit economies and their chairman said on Wednesday morning he was suspending the discussions until Thursday.
At the talks, the European Central Bank told Euro Zone finance ministers that the Euro Zone could need fiscal measures worth up to 1.5 trillion Euros to tackle the economic crisis caused by the COVID-19 epidemic, officials told Reuters.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through 1.0636 will signal a resumption of the downtrend. 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 was formed at 1.0768. A trade through this level will signal renewed selling pressure.
The short-term 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 minor range is 1.1147 to 1.0768. Its 50% level or pivot is a potential upside target.
Daily 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 Wednesday is likely to be determined by trader reaction to the 50% level at 1.0892 and the downtrending Gann angle at 1.0827.
A sustained move over 1.0892 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the pivot at 1.0958.
A break under the Fibonacci level at 1.0831 will be the first sign of weakness. Crossing to the weak side of the downtrending Gann angle at 1.0827 will signal the presence of sellers.
A move under 1.0827 could trigger an acceleration to the downside with the minor bottom at 1.0768 and the uptrending Gann angle at 1.0756 the next likely targets.