EUR/USD Mid-Session Technical Analysis for May 19, 2020

The Euro is trading higher for a second session on Tuesday, propelled by a Franco-German proposal on Monday for a fund that would offer grants to European Union regions and sectors hit hardest by the coronavirus pandemic. The common currency was also propelled by a weaker U.S. Dollar, which lost its safe-haven appeal after encouraging results from the trial of a vaccine for COVID-19, boosted demand for risky assets.

At 11:31 GMT, the EUR/USD is trading 1.0958, up 0.0041 or +0.38%.

Germany and France, whose agreements usually pave the way for broader EU deals, proposed that the European Commission borrow the 500 billion Euros ($546.90 billion) on behalf of the whole EU. The commission is expected to outline their proposal for the fund before a European Summit scheduled for May 27.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 1.1018 will signal a resumption of the uptrend. The main trend will change to down on a trade through the last main bottom at 1.0766.

The minor trend is also up. It changes to down on a trade through 1.0775. This will also shift momentum to the downside.

The short-term range is 1.1147 to 1.0727. Its retracement zone at 1.0937 to 1.0987 is potential resistance. This range is currently being tested.

The intermediate range is 1.0636 to 1.1147. Its retracement zone at 1.0892 to 1.0831 is support.

The main range is 1.1496 to 1.0636. Its retracement zone at 1.1066 to 1.1167 is the next major upside target.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 1.0958, the direction of the EUR/USD the rest of the session on Tuesday is likely to be determined by trader reaction to the 50% level at 1.0937.

Bullish Scenario

A sustained move over 1.0937 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the Fibonacci level at 1.0987.

Overtaking 1.0987 will indicate the buying is getting stronger. This could trigger a further rally into the main top at 1.1018.

Bearish Scenario

A sustained move under 1.0937 will signal the presence of sellers. This could lead to a quick break into the next 50% level at 1.0892. If this fails then look for a steep break into possibly 1.0831.