EUR/USD Mid-Session Technical Analysis for August 27, 2019

The Euro is trading slightly higher against the U.S. Dollar on Tuesday. The currency is also posting an inside move. This typically indicates investor indecision and impending volatility. This makes sense because of the uncertainty over U.S.-China trade relations.

On Friday, fear drove the Forex pair sharply higher, while producing a potentially bullish closing price reversal bottom. On Monday, positive comments from China and President Trump helped calm investor concerns over an escalation of the trade dispute between the two economic powerhouses, and the Euro weakened. Early Tuesday, traders are being cautiously optimistic, hence the inside move.

At 10:54 GMT, the EUR/USD is trading 1.1106, up 0.0007 or +0.06%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up on Friday. A trade through 1.1164 will signal a resumption of the uptrend. A move through 1.1052 will change the trend to down with the next target the August 1 bottom at 1.1027.

The minor range is 1.1052 to 1.1164. Its retracement zone at 1.1106 to 1.1095 is providing support. Buyers are trying to form a secondary higher top.

The short-term range is 1.1250 to 1.1052. Its retracement zone at 1.1151 to 1.1174 is resistance. This zone stopped the rally on Monday at 1.1164.

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

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 1.1106, the direction of the EUR/USD the rest of the session on Tuesday is likely to be determined by trader reaction to the minor retracement zone at 1.1108 to 1.1095.

Bullish Scenario

A sustained move over 1.1108 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into the short-term 50% level at 1.1151, yesterday’s high at 1.1164 and the short-term 61.8% level at 1.1174.

Bearish Scenario

A sustained move under 1.1095 will signal the presence of sellers. This is a potential trigger point for an acceleration into Friday’s closing price reversal bottom at 1.1052. If this fails then the selling could possibly extend into the next main bottom at 1.1027.