EUR/USD Mid-Session Technical Analysis for January 28, 2020

Based on the early price action and the current price at 1.1016, the direction of the EUR/USD the rest of the session on Tuesday is likely to be determined by trader reaction to the main Fibonacci level at 1.1017.
James Hyerczyk

The Euro is inching lower against the U.S. Dollar on Tuesday while posting a narrow inside trading range. Traders are awaiting the release of several U.S. economic reports and the start of the U.S. Federal Reserve’s two-day meeting.

At 13:30 GMT, traders will get the opportunity to react to the latest reports on U.S. Core Durable Goods Orders and Durable Goods Orders. Traders are looking for readings of 0.4% and 1.2% respectively.

At 14:00 GMT, the S&P/CS Composite-20 HPI is expected to come in at 2.5%, up from 2.2%.

At 15:00 GMT, Conference Board Consumer Confidence is expected to come in at 128.2, up from 126.5 and the Richmond Manufacturing Index is expected to come in at minus 3 versus the previously reported minus 5.

At 11:35 GMT, the EUR/USD is trading 1.1016, down 0.0004 or -0.03%.

Investors are likely to closely monitor the Federal Reserve’s first meeting of the year on Tuesday, with the U.S. central bank’s two-day meeting widely expected to keep interest rates unchanged.


Daily Technical Analysis

The main trend is down according to the daily swing chart. The next target is the main bottom at 1.0981. The EUR/USD is in no position to change the main trend to up, but the prolonged sell-off has put it in a position to post a closing price reversal bottom.

The main range is 1.0879 to 1.1239. Its retracement zone at 1.1059 to 1.1017 is controlling the near-term direction of the EUR/USD. The Forex pair is currently straddling the lower end of this zone.

Daily Technical Forecast

Based on the early price action and the current price at 1.1016, the direction of the EUR/USD the rest of the session on Tuesday is likely to be determined by trader reaction to the main Fibonacci level at 1.1017.

Bearish Scenario

A sustained move under 1.1017 will indicate the presence of sellers. Crossing to the bearish side of the downtrending Gann angle at 1.1013 will indicate the selling is getting stronger. If this creates enough downside momentum, we could see a break into the support cluster at 1.0983 to 1.0981.

Bullish Scenario

A sustained move over 1.1017 will signal the presence of buyers. If the move can generate enough upside momentum then look for a rally into the main 50% level at 1.1059 over the near-term.

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