EUR/USD Mid-Session Technical Analysis for December 19, 2019

The Euro is trading lower against the U.S. Dollar on Thursday as President Donald Trump’s impeachment has had little effect on the greenback. The news of Trump becoming the third U.S. president to be impeached isn’t even driving up demand for the safe-haven Japanese Yen as investors continue to bet that he will be acquitted by the Republican-controlled Senate.

At 13:07 GMT, the EUR/USD is trading 1.1115, down 0.0001 or -0.01%.

Volume is extremely light as traders square positions ahead of the start of the year-end holiday season. Despite expectations of limited price behavior, traders should be on the lookout for volatility spikes due to the thin trading conditions.

Traders will also get the opportunity to react to several U.S. economic reports including the Philly Fed Manufacturing Index, Weekly Jobless Claims and Existing Home Sales.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top on December 13.

A trade through 1.1200 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will change to down on a move through 1.0981.

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

The main range is 1.0879 to 1.1200. Its retracement zone at 1.1040 to 1.1002 is the second and more important downside target.

Daily Technical Forecast

Based on the early price action and the current price at 1.1115, the direction of the EUR/USD the rest of the session on Thursday is likely to be determined by trader reaction to the uptrending Gann angle at 1.1121.

Bullish Scenario

A sustained move over 1.1121 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into a minor pivot at 1.1155.

Bearish Scenario

A sustained move under 1.1121 will signal the presence of sellers. This could trigger an acceleration into the short-term retracement zone at 1.1091 to 1.1065, followed closely by an uptrending Gann angle at 1.1051.

Since the main trend is up, look for buyers to come in on the first test of 1.1091 to 1.1051.