EUR/USD Mid-Session Technical Analysis for February 6, 2020

The Euro is edging slightly higher against the U.S. Dollar on below average volume as investors prepare for Friday’s U.S. Non-Farm Payrolls report. Helping to underpin the single-currency was an especially weak Challenger Job Cuts report. However, helping to keep a lid on the Euro was better than expected U.S. Preliminary Nonfarm Productivity. Weekly Unemployment Claims also came in better than expected.

At 13:45 GMT, the EUR/USD is trading 1.1000, up 0.0001 or +0.01%.

On Friday, U.S. Non-Farm Payrolls are expected to come in at 161K, slightly better than last month’s 145K. Average Hourly Earnings are expected to have risen 0.3%. The Unemployment Rate is expected to remain at 3.5%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.0992 will reaffirm the downtrend. The main trend changes to up on a trade through 1.1173. This is highly unlikely, however. Due to the prolonged move down in price and time, traders should watch for a closing price reversal bottom.

The short-term range is 1.0992 to 1.1095. Its retracement zone at 1.1031 to 1.1043 is potential resistance.

The major retracement zone is 1.1059 to 1.1017. This zone is controlling the longer-term direction of the EUR/USD.

Daily Technical Forecast

Based on the early price action and the current price at 1.1000, the direction of the EUR/USD the rest of the session on Thursday is likely to be determined by trader reaction to the uptrending Gann angle at 1.1007 and the uptrending Gann angle at 1.1000.

Bullish Scenario

A sustained move over 1.1007 will indicate the presence of buyers. This could lead to a labored rally with potential upside targets coming in at 1.1017, 1.1022 and 1.1031.

Bearish Scenario

A sustained move under 1.1000 will signal the presence of sellers. The next downside target is a support cluster at 1.0992.

Taking out 1.0992 could drive the EUR/USD into the November 29 main bottom at 1.0981. This is a potential trigger point for an acceleration to the downside.