EUR/USD Mid-Session Technical Analysis for August 24, 2020

The Euro is trading higher along with other riskier currencies on Monday, with some analysts attributing the strength to U.S. regulators approving a treatment for COVID-19 patients ahead of the Republican National Convention.

In a data-light trading session, market participants are awaiting the start of the four-day Republican National Convention, at which U.S. President Donald Trump will seek to reboot his struggling election campaign.

At 12:08 GMT, the EUR/USD is trading 1.1848, up 0.0052 or +0.44%.

Last week, the dollar outperformed the Euro for the first time since mid-June, as U.S. business activity improved while European business surveys showed the economic recovery faltering.

The Euro had previously rallied as the continent controlled the spread of the coronavirus better than in the U.S., and European Union leaders agreed on an EU-wide recovery fund.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 1.1711 will change the main trend to down. A move through 1.1966 will signal a resumption of the uptrend.

The minor trend is also up. The new minor bottom is 1.1754. Taking out this level will change the minor trend to down and shift momentum to the downside.

The minor range is 1.1966 to 1.1754. Its 50% level at 1.1860 is potential resistance.

The second minor range is 1.1696 to 1.1966. The EUR/USD is currently straddling its 50% level at 1.1831.

The third minor range is 1.1371 to 1.1966. If the main trend changes to down, then look for a break into its retracement zone at 1.1668 to 1.1598.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the EUR/USD the rest of the session on Monday is likely to be determined by trader reaction to a pair of 50% levels at 1.1831 and 1.1860.

Bullish Scenario

A sustained move over 1.1831 will be the first sign of buyers. Overtaking 1.1860 will indicate the buying is getting stronger. Taking out 1.1883 could trigger an acceleration to the upside with 1.1966 the next target.

Bearish Scenario

A sustained move under 1.1831 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to extend into 1.1754. This level is a potential trigger point for an acceleration to the downside with potential targets 1.1711 and 1.1696.