EUR/USD Mid-Session Technical Analysis for July 8, 2020

The Euro is edging higher against the U.S. Dollar after an overnight turnaround in U.S. equity markets dampened the greenback’s appeal as a safe-haven asset. The dollar dipped slightly early Wednesday as investors weighed hopes for a swift economic recovery against fears about a resurgence in the pandemic, particularly in the United States.

At 13:08 GMT, the EUR/USD is trading 1.1292, up 0.0020 or +0.18%.

Demand for the greenback was also supported after Federal Reserve officials on Tuesday expressed concern that rising coronavirus cases could harm economic growth just as stimulus measures start to expire.

Basically, we’re looking at an early choppy trade until investors decide if today is going to be a “risk-on” or “risk-off” day.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, but momentum is edging higher. A trade through 1.1348 will change the main trend to up. A trade through 1.1185 and 1.1168 will reaffirm the downtrend.

The minor trend is also up. A trade through 1.1219 changes the minor trend to down and shifts momentum to the downside.

The first minor range is 1.1422 to 1.1168. Its 50% level at 1.1295 is acting like resistance.

The second minor range is 1.1185 to 1.1346. Its 50% level at 1.1265 is acting like support.

The nearest short-term retracement zone support comes in at 1.1146 to 1.1082.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the EUR/USD on Wednesday is likely to be determined by trader reaction to the 50% levels at 1.1295 and 1.1265.

Bullish Scenario

A sustained move over 1.1295 will indicate the presence of buyers. This could trigger a surge into 1.1346 and 1.1348. Taking out 1.1348 will change the main trend to up. This could lead to an acceleration to the upside.

Bearish Scenario

A sustained move under 1.1265 will signal the presence of sellers. If this creates enough downside momentum, then look for the selling pressure to possibly extend into 1.1185 and 1.1168.

For a look at all of today’s economic events, check out our economic calendar.