EUR/USD Mid-Session Technical Analysis for March 20, 2020The main trend is down according to the daily swing chart. The downtrend was reaffirmed earlier today when sellers took out yesterday’s low. The next downside target is the April 10, 2017 main bottom at 1.0569.
The Euro is at its low of day at the mid-session on Friday, inching closer to its April 10, 2017 main bottom at 1.0569. The price action indicates that investors are still demanding U.S. Dollars. The single-currency tumbled to a multi-year low this week, after coordinated rate cuts by central banks and billions of dollars of fund injections failed to calm panicky markets.
At 17:00 GMT, the EUR/USD is trading 1.0655, down 0.0033 or -0.31%.
In other news, European Central Bank supervisors decided on Friday to provide fresh relief to Euro Zone banks struggling with the coronavirus outbreak, including offering wiggle room in accounting rules.
With parts of the single currency’s economy in standstill and financial markets in turmoil, the ECB has been aggressively easing its own lending conditions and demands it places on banks on its watch, Reuters said.
“Within its prudential remit, the ECB recommends that all banks avoid procyclical assumptions in their models to determine provisions,” the ECB said.
The ECB also said its supervisors will “exercise flexibility” with regards to unpaid loans covered by state guarantees or moratoria put in place in response to the virus.
Daily Technical Analysis
The main trend is down according to the daily swing chart. The downtrend was reaffirmed earlier today when sellers took out yesterday’s low. The next downside target is the April 10, 2017 main bottom at 1.0569.
Continue to look for downside pressure as long as the EUR/USD stays on the weak side of the downtrending Gann angle at 1.0776 on Friday. This angle, moving down at a rate of 0.0040 per day, has been guiding the Forex pair lower since the March 9 main top at 1.1496.
If the EUR/USD continues to follow this angle lower, then it should reach the 1.0569 main target on March 24 to March 25.
A higher close on Friday will indicate the buying is greater than the selling at current price levels. If confirmed on Monday then this could lead to a 2 to 3 day counter-trend rally.