EUR/USD Mid-Session Technical Analysis for March 17, 2020

The Euro is under pressure against the U.S. Dollar as worried traders rushed to buy the most liquid currency. Coordinated moves by central banks have failed to quell anxiety about the coronavirus pandemic, funding pressures in the market for U.S. Dollars.

Investors have taken central bank action as insufficient given the coronavirus’s rapid spread across the globe, which has put many nations into virtual lockdown and sparked warnings about a brutal global recession.

Investors are now waiting to see the scale of government fiscal responses to battle the economic fallout from the virus and limit the expected contraction in the global economy.

At 13:22 GMT, the EUR/USD is trading 1.0985, down 0.019 or -1.66%.

Traders are also buying dollars because of a rumor that the Trump administration is seeking as much as $850 billion in fiscal stimulus.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through 1.0778 will change the main trend to down. A move through 1.1496 will signal a resumption of the uptrend.

The minor trend is down. It was reaffirmed earlier today when sellers took out 1.1055. It will change to up on a trade through 1.1237. This will shift momentum to the upside.

The main range is 1.0778 to 1.1496. Trading on the weak side of its retracement zone at 1.1052 to 1.1137 is also giving the EUR/USD a downside bias.

Daily Technical Forecast

Based on the early price action and the current price at 1.0985, the direction of the EUR/USD the rest of the session on Tuesday is likely to be determined by trader reaction to the downtrending Gann angle at 1.1016 and the uptrending Gann angle at 1.0958.

Bearish Scenario

Holding below 1.1052 and 1.1016 is helping to generate a downside bias. Taking out 1.0958 could trigger an acceleration into the next uptrending Gann angle at 1.0868. This is the last potential support angle before the 1.0778 main bottom.

Bullish Scenario

A sustained move over 1.1016 will indicate the return of buyers. This could trigger a quick move into 1.1052. If overcoming this level creates enough upside momentum then look for a breakout into the resistance cluster at 1.1137.