EUR/USD Mid-Session Technical Analysis for June 18, 2020

The Euro is trading lower against the U.S. Dollar on Thursday despite a worse than expected U.S. initial claims report.

Weekly jobless claims stayed above 1 million for the 13^th consecutive week as the coronavirus pandemic continued to hammer at the U.S. economy.

According to government data, first-time claims totaled 1.5 million last week, higher than the 1.3 million that economists surveyed by Dow Jones had been expecting. That was 58,000 lower than the previous week’s 1.566 million, which was revised up by 24,000.

At 14:37 GMT, the EUR/USD is trading 1.1211, down 0.0031 or -0.27%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The trade through yesterday’s low at 1.1208 signaled a resumption of the downtrend. The main trend changes to up on a move through 1.1422.

The minor trend is also down. A move through 1.1353 will change the minor trend to up. This will also shift momentum to the upside.

The minor range is 1.1422 to 1.1208. Its 50% level at 1.1315 is the primary upside target and potential resistance zone.

The short-term range is 1.0871 to 1.1422. Its retracement zone at 1.1146 to 1.1082 is the first downside target area.

Daily Swing Chart Technical Forecast

Based on the intraday downside momentum, we’re looking for a possible drive into the short-term 50% level at 1.1146. Watch for a technical bounce on the first test of this level. If it fails to hold then look for a possible extension of the selling into 1.1082.