EUR/USD Mid-Session Technical Analysis for February 11, 2020
Based on the early price action and the current price at 1.0905, the direction of the EUR/USD the rest of the session on Tuesday is likely to be determined by trader reaction to yesterday’s close at 1.0911.
The Euro is inching lower against the U.S. Dollar on Tuesday after hitting its lowest level in four months earlier in the session. The single-currency is being underpinned by firmer government bond yields across the Euro area, which rose in response to gains by global equity markets.
Despite the early gains, the Euro remains weak with investors worried about the coronavirus’ impact on the world economy, alongside political uncertainty in Germany. Additionally, ECB President Christine Lagarde is scheduled to speak later in the trading session, while U.S. Federal Reserve Chairman Jerome Powell will deliver a semi-annual testimony to Congress.
At 14:15 GMT, the EUR/USD is trading 1.0905, down 0.0006 or -.06%.
Fed Chair Powell will look to provide a view on the economy and some clues on policy without trying himself or his colleagues to a specific policy path. Wall Street expects a generally upbeat presentation with a nod toward the coronavirus threat as well as some of the other issues with which policymakers have wrestled. Most traders expect Powell to lean toward the dovish side.
Daily Technical Analysis
The main trend is down according to the daily swing chart. The next downside target is the October 1, 2019 main bottom at 1.0879. The main trend will change to up on a move through 1.1095. This is highly unlikely, however, the EUR/USD is down seven sessions from its last main top which puts it inside the window of time for a closing price reversal bottom.
Daily Technical Forecast
Based on the early price action and the current price at 1.0905, the direction of the EUR/USD the rest of the session on Tuesday is likely to be determined by trader reaction to yesterday’s close at 1.0911.
Bearish Scenario
A sustained move under 1.0911 will indicate the presence of sellers. Taking out the long-term uptrending Gann angle at 1.0909 could trigger an acceleration into the main bottom at 1.0879. This is the last main bottom before the May 11, 2017 main bottom at 1.0838.
Bullish Scenario
A sustained move over 1.0911 will signal the return of buyers. This could create the upside momentum needed to challenge the next uptrending Gann angle at 1.0938. This is followed closely by a downtrending Gann angle at 1.0955.
