EUR/USD Mid-Session Technical Analysis for December 11, 2019

The Euro is treading water against the U.S. Dollar at the mid-session on Wednesday as trader braced for a plethora of events, including central bank meetings in the United States and Europe, the UK general election and a key deadline for U.S.-China trade talks.

Earlier in the session, a U.S. report showed Consumer Inflation rose 0.3%, beating the forecast of 0.2%. Core CPI, however, came in as expected at 0.2%. The numbers should not affect the Fed’s decisions later in the day.

At 16:38 GMT, the EUR/USD is trading 1.1094, down 0.0002 or -0.02%.

The U.S. Federal Reserve is expected to leave policy unchanged when it concludes its last policy meeting of the year later on Wednesday. It will release its interest rate and policy decisions at 19:00 GMT.

The direction of the EUR/USD after the meeting will be determined by the tone of Fed Chairman Jerome Powell’s press conference. If he puts a dovish spin on his economic outlook, the Euro could rally. A hawkish spin and the Forex pair could weaken. Gains and losses will be limited because of the ECB meeting on Thursday.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 1.1116 will signal a resumption of the uptrend. The main trend will change to down on a move through 1.0981.

The short-term range is 1.1176 to 1.0981. Its retracement zone at 1.1079 to 1.1102 is currently being tested. Trader reaction to this zone will determine the near-term direction of the EUR/USD.

The main range is 1.0879 to 1.1179. Its retracement zone at 1.1029 to 1.0994 is key support.

Daily Technical Forecast

Based on the early trade, the direction of the EUR/USD the rest of the session on Wednesday is likely to be determined by trader reaction to the short-term Fibonacci level at 1.1102 and the downtrending Gann angle at 1.1104.

Bearish Scenario

A sustained move under 1.1102 will indicate the presence of sellers. If this creates enough downside momentum then look for a retest of the short-term 50% level at 1.1079. If this level fails then look for the selling to possibly extend into the uptrending Gann angle at 1.1061.

Bullish Scenario

A sustained move over 1.1104 will signal the presence of buyers. This could trigger a surge into the minor top at 1.1116. This is a potential trigger point for an acceleration to the upside with the next target angle coming in at 1.1140.