EUR/USD Mid-Session Technical Analysis for December 15, 2020

The Euro is holding steady-to-lower against the U.S. Dollar on Tuesday, straddling yesterday’s close for most of the early session, while hovering just underneath a 2-1/2 year peak reached on December 4. Helping to cap gains are worries about the impact of new restrictions in the Euro Zone to fight COVID-19. Underpinning the single-currency is the likelihood of more U.S. stimulus that would weigh on the U.S. Dollar.

At 13:57 GMT, the EUR/USD is trading 1.2138, down 0.0007 or -0.06%.

The single currency has rocketed 4% since early November to its highest level since April 2018, in part because of broad-based selling of the U.S. Dollar and as investors bet a vast European recovery fund package will lift the regions’ economies.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 1.2178 will signal a resumption of the uptrend. The main trend will change to down on a move through 1.2059.

The minor range is 1.2178 to 1.2059. Its 50% level or pivot at 1.2119 is providing support.

The short-term range is 1.1800 to 1.2178. If the main trend changes to down then look for the selling to possibly extend into its retracement zone at 1.1989 to 1.1944.

Daily Swing Chart Technical Forecast

The direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to 1.2119.

Bullish Scenario

A sustained move over 1.2119 will indicate the presence of buyers. Taking out yesterday’s high at 1.2177 will indicate the buying is getting stronger. A move through 1.2178 will reaffirm the uptrend and could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 1.2119 will signal the presence of sellers. This could trigger a break into the main bottom at 1.2059. This is the trigger point for a change in trend. If it fails then selling could extend into 1.1989 to 1.1944.

For a look at all of today’s economic events, check out our economic calendar.