EUR/USD Mid-Session Technical Analysis for December 31, 2019

The Euro rose as the U.S. Dollar weakened on Tuesday as investors saw global growth improving next year, with the United States and China due to finally sign a Phase 1 trade agreement this week. Chinese Vice Premier Liu He will visit Washington this week to sign a Phase 1 trade deal with the United States, the South China Morning Post reported on Monday.

At 11:29 GMT, the EUR/USD is trading 1.1219, up 0.0019 or +0.17%.

In other news, the latest CFTC data shows that hedge funds held $9.16 billion of Euro shorts, far less than the $14.84 billion seen in May.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 1.1313 will signal a resumption of the uptrend. A move through 1.1067 will change the main trend to down.

The main range is 1.1413 to 1.0879. Its retracement zone is 1.1146 to 1.1209. A sustained move to the strong side of this zone will put the EUR/USD in a bullish position.

A major long-term Fibonacci level at 1.1185 is potential support.

The short-term range is 1.0879 to 1.1313. Its retracement zone at 1.1096 to 1.1045 is additional support.

Daily Technical Forecast

Based on the early price action and the current price at 1.1219, the direction of the EUR/USD the rest of the session on Tuesday is likely to be determined by trader reaction to a Fibonacci level at 1.1209 and an uptrending Gann angle at 1.1201.

Bullish Scenario

A sustained move over 1.1201 will indicate the presence of buyers. The first upside target is a downtrending Gann angle at 1.1244. Taking out this angle will indicate the buying is getting stronger. This could create the upside momentum needed to challenge the main top at 1.1313, followed closely by the downtrending Gann angle at 1.1328.

Bearish Scenario

A sustained move under 1.1201 will signal the presence of sellers. This could trigger a quick break into 1.1185.

A failure to hold 1.1185 could trigger an acceleration to the downside with the next target a 50% level at 1.1146.