EUR/USD Mid-Session Technical Analysis for June 25, 2020

The Euro is trading lower against the U.S. Dollar at the mid-session on Thursday as investors flock to the greenback for safe-haven protection amid a rapid rise in coronavirus infections in some U.S. states and other major countries. Additionally, tensions are brewing between the United States and the European Union over new U.S. tariffs.

At 14:52 GMT, the EUR/USD is trading 1.1228, down 0.0012 or -0.11%.

In economic news, U.S. data on Thursday showed weak demand is forcing U.S. employers to lay off workers, keeping new applications for unemployment benefits extraordinarily high, even as businesses have reopened.

New orders for U.S.-made capital goods rebounded more than expected in May, but recouped only a portion of the prior two months’ declines.

Meanwhile, a string of positive economic indicators in the Euro Zone confirm that a recovery is on its way but the bloc may still need years to reach pre-crisis levels of activity, European Central Bank policymaker Klaas Knot said on Thursday.

“I would say that recent data solidified the confidence in our baseline scenario,” Knot, the head of the Dutch central banks, said in an online forum. “Yet, even in that baseline scenario, economic activity will only approach the pre-Corona 2019 level by the end of our projection horizon, at the end of 2022.”

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1168 will reaffirm the downtrend. A move through 1.1422 will change the main trend to up.

The minor trend is also down. A trade through 1.1349 will change the minor trend to up and shift momentum to the upside.

On the upside, resistance is a pair of 50% levels at 1.1259 and 1.1295.

The main support is the retracement zone at 1.1167 to 1.1066. This zone is controlling the longer-term direction of the Forex pair.

Daily Technical Forecast

Based on the early price action, trader reaction to the downtrending Gann angle at 1.1202 should set the tone of the trade into the close.

Bearish Scenario

Crossing to the weak side of the Gann angle at 1.1202 will indicate that the selling is getting stronger. This should lead to a test of the support cluster at 1.1167 to 1.1168. The latter is the trigger point for an acceleration to the downside with 1.1066 the next major target price.

Bullish Scenario

A sustained move over 1.1202 will signal the presence of buyers. If this move is able to create enough upside momentum to trigger a short-covering rally then look for a possible retest of the pivot at 1.1259.

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