EUR/USD Mid-Session Technical Analysis for August 28, 2020

The Euro is trading higher on Friday after a report showed Euro Zone sentiment recovered for the fourth straight month in August. The single-currency was also supported by a jump in German yields to their highest level since June as the focus turned to Euro Zone inflation.

At 12:45 GMT, the EUR/USD is trading 1.899, up 0.0078 or +0.66%.

Euro Zone’s economic sentiment grew in August for the fourth consecutive month after a record slump caused by COVID-19 lockdowns in March and April, a survey released on Friday by the European Commission showed.

Additionally, German bond yields rose to their highest level since early June after the U.S. Federal Reserve’s decision to target average inflation pushed yields to multi-month highs on both sides of the Atlantic.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 1.1755 will change the minor trend to down, while a move through 1.1966 will signal a resumption of the uptrend.

The minor trend is also up. A trade through 1.1762 will change the minor trend to down. This will also shift momentum to the downside.

Support is a pair of 50% levels at 1.1860 and 1.1831.

Daily Swing Chart Technical Forecast

Based on the early price action, the bias has shifted to the upside with the EUR/USD crossing to the strong side of the 50% levels and the taking out of a minor top.

Look for the upside bias to continue on sustained move over $1.1860. If this continues to create enough upside momentum then look for the rally to possibly extend into a pair of main tops at 1.1966 and 1.1998.

On the downside, crossing to the weak side of the 50% level at 1.1831 will signal the presence of sellers. If this move generates enough downside momentum then the selling is likely to extend into 1.1762 to 1.1755.