EUR/USD Mid-Session Technical Analysis for March 30, 2020

The U.S. Dollar is edging higher against the Euro on Monday as investors braced for a prolonged period of uncertainty and volatility as concerns about the spreading coronavirus and the economic impact of shutdowns continued to dominate foreign exchange markets. Analysts also said investors’ end-of-month portfolio rebalancing as well as nervousness about the virus was also supporting the greenback.

At 12:16 GMT, the EUR/USD is trading 1.1032, down 0.0113 or -1.02%.

In other news, Euro Zone sentiment suffered its steepest ever monthly decline in March as the coronavirus led to declining confidence among consumers and all sectors of the economy, in many cases even before crippling lockdowns were imposed, Reuters reported.

Economic sentiment in the 19 countries sharing the Euro fell to 94.5 points in March from 103.4 in February, sharply breaking an upward trend in place from November, European Commission survey data showed on Monday.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.0636 will signal a resumption of the downtrend. The main trend will change to up on a trade through 1.1496.

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

The short-term range is 1.1496 to 1.0636. Its retracement zone at 1.1066 to 1.1167 is resistance. This zone stopped the rally at 1.1147 on Friday.

Daily Technical Forecast

Based on the early price action and the current price at 1.1032, the direction of the EUR/USD the rest of the session on Monday is likely to be determined by trader reaction to the steep uptrending Gann angle at 1.1036.

Bearish Scenario

A sustained move under 1.1036 will indicate the presence of sellers. If this move creates enough downside momentum then look for a possible break into the next uptrending Gann angle at 1.0836.

Bullish Scenario

A sustained move over 1.1036 will signal the presence of buyers. Overcoming the 50% level at 1.1066 will indicate the buying is getting stronger. If this creates enough upside momentum then look for the rally to possibly extend into the Fibonacci level at 1.1167, followed by a downtrending Gann angle at 1.1196.