EUR/USD Mid-Session Technical Analysis for June 2, 2020

The Euro is trading higher against the U.S. Dollar on Tuesday as investors maintained their hope in a global economic recovery as countries continue to reopen following coronavirus-related shutdowns. Traders seem to be setting aside concerns by some over simmering U.S.-China relations. Shortly before the U.S. opening, the single-currency is touching its highest level since March 17.

At 10:19 GMT, the EUR/USD is trading 1.1176, up 0.0042 or +0.38%.

In other news, demand for German government debt increased on Tuesday and yields fell across the Euro Zone as a whole, as Monday’s global risk-on mood started to fade and investor attention focused on the European Central Bank’s meeting on Thursday.

The ECB is expected to increase its 750 billion-euro bond-buying programme, Pandemic Emergency Purchase Programme, or PEPP, on Thursday, probably by around 500 billion Euros.

But a news report by MNI, which cited unnamed ECB officials, said that many members of the ECB’s governing council would oppose adding to the asset-purchase program, preferring to wait as long as several months.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers took out yesterday’s high. A trade through the nearest swing bottom at 1.0871 will change the main trend to down.

The main range is 1.1496 to 1.0636. Its retracement zone at 1.1066 to 1.1167 is controlling the longer-term direction of the EUR/USD. Buyers are currently testing the upper or Fibonacci level of this range, threatening a breakout to the upside.

Daily Swing Chart Technical Forecast

The early price action indicates the direction of the EUR/USD the rest of the session on Tuesday is likely to be determined by trader reaction to the Fibonacci level at 1.1167.

Bullish Scenario

A sustained move over 1.1167 will indicate the presence of buyers. If this creates enough upside momentum then look for a potential surge into the nearest minor top at 1.1237.

Bearish Scenario

A sustained move under 1.1167 will signal the presence of sellers. This could lead to an eventual retest of the main 50% level at 1.1066.

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