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.
James Hyerczyk

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.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.