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

By:
James Hyerczyk
Published: Mar 18, 2020, 12:38 UTC

Based on the early price action and the current price at 1.0968, the direction of the EUR/USD the rest of the session on Wednesday is likely to be determined by trader reaction to the uptrending Gann angle at 1.0968.

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

The Euro is trading flat to lower against the U.S. Dollar on Wednesday as investors continue to assess the impact of the coronavirus on the Euro Zone and U.S. economies. The price action also suggests investors may be preparing for aggressive action from European Central Bank (ECB) officials. Earlier in the week, the U.S. Federal Reserve took action to shore up the U.S. economy. This move helped boost the U.S. Dollar as well as huge international demand for the world’s most liquid currency.

At 12:35 GMT, the EUR/USD is trading 1.0968, down 0.0029 or -0.26%.

Earlier in the session, high-grade Euro Zone government bonds led by Germany saw yields rise on Wednesday as speculation grew around the issuance of joint Euro Zone bonds and governments around the world ramped up spending plans to combat the coronavirus fallout.

Additionally, Raiffeisen Bank International (RBI) on Wednesday said loan growth would be lower than initially expected and the provisioning ratio would rise this year due. The lender, which operates across central and eastern Europe, forecast gross domestic product would fall by around 4% in the Euro Zone and 6% in its markets this year.

Daily EUR/USD

Daily Technical Analysis

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

The minor trend is down. This is controlling the momentum. A trade through 1.1237 will change the minor trend to up. This will also shift momentum to the upside.

The main range is 1.0778 to 1.1496. Its retracement zone at 1.1052 to 1.1137 is resistance. Trading on the weak side of this zone is helping to generate the downside bias.

Daily Technical Forecast

Based on the early price action and the current price at 1.0968, the direction of the EUR/USD the rest of the session on Wednesday is likely to be determined by trader reaction to the uptrending Gann angle at 1.0968.

Bearish Scenario

A sustained move under 1.0968 will indicate the presence of sellers. Crossing to the weak side of the downtrending Gann angle at 1.0936 will indicate the selling is getting stronger. This could trigger a further break into an uptrending Gann angle at 1.0873. This is the last potential support angle before the 1.0778 main bottom.

Bullish Scenario

A sustained move over 1.0968 will signal the return of buyers. If this creates enough upside momentum then look for a rally into the Fibonacci level at 1.1052.

Overtaking 1.1052 will indicate the buying is getting stronger with the next target the 50% level at 1.1137.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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