EUR/USD Mid-Session Technical Analysis for December 20, 2019

The Euro is trading steady against the U.S. Dollar on Friday as investors await a slew of U.S. economic data including final gross domestic product. The single-currency has been pressured most of the week by strong economic data that decreased expectations the Federal Reserve will continue its interest rate-cutting cycle in 2020.

At 10:50 GMT, the EUR/USD is trading 1.1114, down 0.0005 or -0.04%.

Final Third-Quarter GDP is expected to come in at 2.1%. The Core PCE Price Index is expected to have risen 0.1%. Personal Spending is expected to come in at 0.4% and Personal Income is forecast to have risen 0.3%. Revised University of Michigan Sentiment is expected to come in at 99.2.

Daily Technical Analysis

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

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

The short-term range is 1.0981 to 1.1200. Its retracement zone at 1.1091 to 1.1065 is the first downside target. Since the main trend is up, buyers are likely to come in on a test of this area.

The main range is 1.0879 to 1.1200. Its retracement zone comes in at 1.1040 to 1.1002. This zone is controlling the near-term direction of the EUR/USD.

Daily Technical Forecast

Based on the early price action and the current price at 1.1114, the direction of the EUR/USD on Friday is likely to be determined by trader reaction to the uptrending Gann angle at 1.1131.

Bearish Scenario

A sustained move under 1.1131 will indicate the presence of sellers. Taking out yesterday’s low at 1.1108 will indicate the selling is getting stronger. This could trigger an acceleration to the downside with the first target the short-term 50% level at 1.1091. Watch for buyers on the initial test. If it fails then look for the selling to possibly extend into the Fibonacci level at 1.1065.

Bullish Scenario

Overtaking the angle at 1.1131 will signal the presence of buyers. This could create the upside momentum needed to challenge the downtrending Gann angle at 1.1150.