EUR/USD Mid-Session Technical Analysis for December 9, 2020

The Euro is trading flat against the U.S. Dollar on Wednesday ahead of tomorrow’s European Central Bank (ECB) interest rate and monetary policy decisions.

CNBC is reporting that the European Central Bank (ECB) is set to expand its massive stimulus program further on Thursday as the continent deals with a second wave of the coronavirus pandemic and the associated lockdowns.

At 13:14 GMT, the EUR/USD is trading 1.2107, up 0.0001 or +0.01%.

In other news, the market remains ‘jittery” as all eyes remain on Boris Johnson’s meeting in Brussels, with any breakthroughs likely to work in the pound’s favor. Traders are also monitoring the surge in coronavirus cases as well as the start of vaccinations in the U.K, and the on-going fiscal stimulus negotiations in the United States.

Daily Swing Chart 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 December 4.

A trade through 1.2178 will negate the closing price reversal top and signal a resumption of the uptrend. A move through 1.1800 will change the main trend to down.

The minor range is 1.2178 to 1.2079. The EUR/USD has been straddling its 50% level or pivot at 1.2129 the past three sessions. It seems to be controlling the direction of the single-currency this week.

The short-term range is 1.1800 to 1.2178. Taking out 1.2079 will indicate the selling pressure is getting stronger. This could trigger a break into its retracement zone at 1.1989 to 1.1944.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the EUR/USD is likely to be determined by trader reaction to 1.2129.

Bullish Scenario

A sustained move over 1.2129 will indicate the presence of buyers. This could trigger a rally into 1.2178. Taking out this level could trigger an acceleration to the upside since there is no major resistance until 1.2413.

Bearish Scenario

A sustained move under 1.2129 will signal the presence of sellers. The first downside target is 1.2079. Taking out this level could trigger an acceleration to the downside with 1.1989 to 1.1944 the next likely target area.

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