EUR/USD Mid-Session Technical Analysis for December 17, 2019

The Euro is trading higher against the U.S. Dollar after a report showed the Euro Zone’s seasonally adjusted trade surplus rose more than expected in October compared with a year earlier thanks to a sharp fall in energy imports, data showed on Tuesday. The move keeps the single-currency within striking distance of the multi-month high reached on Friday.

At 11:40 GMT, the EUR/USD is trading 1.1166, up 0.0024 or +0.22%.

The European Union’s statistics office Eurostat said the trade surplus of the 19 countries sharing the Euro rose to 28.0 billion Euros ($30.9 billion) in October from 13.2 billion a year earlier after exports jumped 4.1% and imports fell 3.2%. Economists polled by Reuters had expected a trade surplus of 17 billion Euros in October.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, Friday’s closing price reversal top has temporarily stopped the rally. A trade through 1.1200 will negate the chart pattern and signal a resumption of the uptrend. A move through 1.1112 will confirm the reversal top and likely trigger the start of a 2 to 3 day correction.

The long-term Fibonacci level at 1.1185 is the primary upside target.

The short-term range is 1.0981 to 1.1200. Its retracement zone at 1.1091 to 1.1065 is the primary downside target.

Daily Technical Forecast

The EUR/USD is currently trading inside Friday’s wide range, which tends to indicate investor indecision and impending volatility. The range is 1.1200 to 1.1112. Its 50% level or mid-point at 1.1156 is controlling the price action on Tuesday.

Bullish Scenario

A sustained move over 1.1156 will indicate the presence of buyers. If this move can create enough upside momentum then look for a surge into 1.1185 to 1.1200.

Bearish Scenario

A sustained move under 1.1156 will signal the presence of sellers. If this move generates enough downside momentum then look for a possible break into the nearest uptrending Gann angle at 1.1101.

Since the main trend is up, look for buyers on the first test of 1.1101. If this angle fails as support then look for the selling to possibly extend into the short-term 50% level at 1.1091.