EUR/USD Mid-Session Technical Analysis for June 16, 2020

The Euro is trading slightly lower against the U.S. Dollar on Tuesday after U.S. Retail Sales shattered already-lofty expectations for May as consumers freed from the coronavirus-induced lockdowns began shopping again.

The 17.7% headline gain including food sales easily topped the previous record from October 2001 and beat the 8% estimate from economists surveyed by Dow Jones.

Retail Sales powered 16.8% higher from April, more than double the estimate of 8% from Dow Jones and reversing a 16.4% plunge from a month ago.

At 12:48 GMT, the EUR/USD is trading 1.1301, down 0.0021 or -0.18%.

At 13:15 GMT, investors will get the opportunity to react to the latest figures on Capacity Utilization and Industrial Production. At 14:00 GMT, Fed Chair Jerome Powell begins the first of two days of testimony before Congress.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1422 will change the main trend to up. A move through 1.1213 will signal a resumption of the downtrend.

The minor range is 1.1422 to 1.1213. Its 50% level at 1.1318 is controlling the direction of the EUR/USD on Tuesday.

The main range is 1.1496 to 1.0636. Its retracement zone at 1.1167 to 1.1066 is the primary downside target. This zone is also controlling the longer-term direction of the EUR/USD.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 1.1301, the direction of the EUR/USD the rest of the session on Tuesday is likely to be determined by trader reaction to the 50% level at 1.1318.

Bullish Scenario

A sustained move over 1.1318 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for an eventual retest of 1.1422.

Bearish Scenario

A sustained move under 1.1318 will signal the presence of sellers. If this creates enough downside momentum then look for an eventual break into 1.1213, followed closely by 1.1167.

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