EUR/USD Mid-Session Technical Analysis for March 3, 2020

The Euro is edging lower against the U.S. Dollar on Tuesday after a reports showed Euro Zone consumer prices rose more slowly in February than in January, as expected, as the spread of the coronavirus around the world depressed oil prices.

Prices rose 1.2% year-on-year after a 1.4% rise in the previous month, Tuesday’s data from European Union statistics office Eurostat showed. The reading was in line with a Reuters poll of analysts.

At 12:29 GMT, the EUR/USD is trading 1.1115, down 0.0018 or -0.16%.

The European Central Bank (ECB) wants to keep inflation below, but close to 2% over the medium term.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 1.1185 will signal a resumption of the uptrend. The main trend will change to down on a trade through 1.0778. This is highly unlikely, but there is room for a normal 50% to 16.8% correction.

The major range is 1.1413 to 1.0778. Its retracement zone at 1.1096 to 1.1170 is acting likely resistance. The Euro is currently hovering near the lower end of this range.

The new short-term range is 1.0778 to 1.1185. If the selling pressure continues then look for a short-term pullback into its retracement zone at 1.0982 to 1.0934.

Daily Technical Forecast

Based on the early price action and the current price at 1.1115, the direction of the EUR/USD the rest of the session on Tuesday is likely to be determined by trader reaction to the support cluster at 1.1098 to 1.1096.

Bullish Scenario

A sustained move over 1.1098 will indicate the presence of buyers. Overcoming the downtrending Gann angle at 1.1129 will indicate the buying is getting stronger. This could lead to a test of the Fibonacci level at 1.1170 and the downtrending Gann angle at 1.1184. This angle stopped the rally at 1.1185 on Monday. Taking out 1.1185 could trigger a surge into the next main top at 1.1239.

Bearish Scenario

A sustained move under 1.1096 will signal the presence of sellers. This is a potential trigger point for a steep break with the next target a downtrending Gann angle at 1.1019. If this fails to hold as support then look for the selling to possibly extend into the short-term retracement zone at 1.0982 to 1.0934.