EUR/USD Mid-Session Technical Analysis for January 16, 2020Based on the early price action and the current price at 1.1135, the direction of the EUR/USD into the close is likely to be determined by trader reaction to a pair of Gann angles at 1.1129 and 1.1125.
The Euro is trading lower against the U.S. Dollar late in the session on Thursday after better-than-expected U.S. economic data reduced the chances of a Fed rate hike, driving up demand for the greenback.
The single-currency released earlier gains after multiple data releases painted a positive U.S. economic picture. The Commerce Department said on Thursday retail sales increased 0.3% last month. The Philly Fed Manufacturing Index rebounded in January to its highest level in eight months, and the outlook is the brightest in more than a year and a half. Finally, other data showed that the number of Americans filing for unemployment benefits fell more than expected last week.
At 19:08 GMT, the EUR/USD is trading 1.1135, down 0.0015 or -0.13%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through 1.1239 will signal a resumption of the uptrend. A move through 1.1085 will change the main trend to down.
The short-term range is 1.1239 to 1.1085. Its 50% level at 1.1162 is resistance.
A longer-term resistance zone is 1.1146 to 1.1209. Inside this zone is a longer-term Fibonacci level at 1.1185.
On the downside, the major support zone is 1.1096 to 1.1045.
Based on the early price action and the current price at 1.1135, the direction of the EUR/USD into the close is likely to be determined by trader reaction to a pair of Gann angles at 1.1129 and 1.1125.
Holding above 1.1129 will indicate the presence of buyers and that today’s price action was just a pullback into support. Potential upside targets include 1.1146 and 1.1162.
A break under 1.1125 will signal the selling pressure is getting stronger. This could lead to a late session drop into an uptrending Gann angle at 1.1105. This is followed by 1.1096 and the main bottom at 1.1085.