EUR/USD Mid-Session Technical Analysis for March 10, 2020

The Euro is under pressure against the U.S. Dollar as a recovery in U.S. Treasury yields is helping to make the U.S. Dollar a more attractive investment. After plunging to a record low on Monday, the U.S. 10-year Treasury yield is moving higher on Tuesday after President Trump pledged government stimulus to offset the effects of the coronavirus on the economy. Trump floated the idea of a “payroll tax cut or relief” to offset the coronavirus impact.

At 11:26 GMT, the EUR/USD is trading 1.1365, down 0.0076 or -0.66%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 1.1496 will signal a resumption of the uptrend, while a trade through the January 31, 2019 main top will reaffirm the uptrend.

The minor trend is also up. Tuesday’s lower-low has created a new minor top at 1.1496. The minor trend will change to down on a move through 1.1096. This will also shift momentum to the downside.

The main range is 1.0778 to 1.1496. If the selling pressure continues then its retracement zone at 1.1137 to 1.1052 will become the primary downside target.

Daily Technical Forecast

If the selling pressure continues then look for a break into a steep uptrending Gann angle at 1.1298. This angle, moving up at a rate of .0040 per day from the 1.0778 main bottom on February 20, has been guiding the market higher for 13 sessions.

Trader reaction to the Gann angle at 1.1298 will determine the direction of the EUR/USD the rest of the session on Tuesday.

Bullish Scenario

A sustained move over 1.1298 or a successful test of the Gann angle will indicate the presence of buyers. If this is able to generate enough upside momentum then look for a possible retest of yesterday’s high at 1.1496. This is likely to occur if U.S. Treasury yields suddenly plunge.

Taking out 1.1514 could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 1.1298 will signal the presence of sellers. This could trigger an acceleration to the downside with the next potential target the main 50% level at 1.1137. Since the main trend is up, buyers are likely to show up on the first test of this level.

If 1.1137 fails as support then the selling could extend into the minor bottom at 1.1096 and the main Fibonacci level at 1.1052.