EUR/USD Mid-Session Technical Analysis for April 9, 2020

The Euro is trading higher against the U.S. Dollar shortly after the release of a report on U.S. weekly jobless claims. Jobless rolls continued to swell due to the coronavirus shutdown, with 6.6 million Americans filing first-time unemployment claims in the week-ended April 4, the Labor Department reported Thursday.

At 12:47 GMT, the EUR/USD is trading 1.0881, down 0.0003 or -0.02%.

In other news, yields across the core Euro Zone bond markets rose slightly on Thursday, with those in the peripheral markets advancing higher, as investors waited to see whether European finance ministers would be able to reach agreement on an economic rescue package.

The tight trading range suggests the EUR/USD is being underpinned by the hopes that another weak U.S. jobless claims report would lead to additional fiscal stimulus. This would weaken the dollar.

Gains are likely being capped by the chance European finance policymakers decide on an economic rescue package. This would weaken the Euro.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.0768 will signal a resumption of the downtrend. A move through 1.1147 will change the main trend to up.

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. Trader reaction to this zone could determine the near-term direction of the Forex pair.

The minor range is 1.1147 to 1.0768. Its 50% level or pivot at 1.0958 is a potential upside target.

Daily Technical Forecast

Based on the early price action and the current price at 1.0881, the direction of the EUR/USD the rest of the session on Thursday is likely to be determined by trader reaction to the uptrending Gann angle at 1.0896 and the Fibonacci level at 1.0831. Holding between these levels will produce a neutral trade.

Bullish Scenario

A sustained move over the uptrending Gann angle at 1.0896 will indicate the presence of buyers. If buying volume increases on the move then look for a surge into 1.0958 and a downtrending Gann angle at 1.0967.

Bearish Scenario

A sustained move under 1.0831 will signal the presence of sellers. This could trigger a break into an uptrending Gann angle at 1.0766. If shorting weakness, make sure you have volume on your side.