EUR/USD Mid-Session Technical Analysis for May 29, 2020The direction of the EUR/USD the rest of the session on Friday is likely to be determined by trader reaction to the main 50% level at 1.1066.
The Euro is trading higher at the mid-session on Friday as traders await a key press conference from President on China in a move that could have a dramatic effect on investor sentiment.
On Friday, the greenback extended its slide against the surging Euro, hurt by month-end flows and as the common currency continued to enjoy a boost from the European Union’s recently announced plan to prop up the bloc’s coronavirus-hit economies with a 750 billion-Euro ($828 billion) recovery fund.
At 18:17 GMT, the EUR/USD is trading at 1.1093, up 0.0014 or -0.12%. This is down from an intraday high of $1.1145.
An early session gain by the Euro was driven by optimism generated by the European Commission’s stimulus plan announced earlier this week, as well as investors’ improved appetite for risk-taking as global economies gradually move to reopen after coronavirus-linked shutdowns, analysts said.
However, prices fell after the U.S. Dollar found support as traders awaited U.S. President Donald Trump’s response to China’s tightening control over Hong Kong, which could worsen tensions between the two powers over the financial hub.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. The uptrend continued earlier today when buyers took out yesterday’s high. A trade through the main top at 1.1147 will reaffirm the uptrend. The main trend will change to down on a trade through the last main bottom at 1.0871.
The main range is 1.1496 to 1.0636. The EUR/USD is currently testing its retracement zone at 1.1066 to 1.1167. This zone is controlling the longer-term direction of the Forex pair.
The short-term range is 1.0636 to 1.1147. Its retracement zone at 1.0987 to 1.0937 is the nearest support zone.
Daily Swing Chart Technical Forecast
Based on the early price action and current price at 1.1093, the direction of the EUR/USD the rest of the session on Friday is likely to be determined by trader reaction to the main 50% level at 1.1066.
A sustained move over 1.1066 will indicate the presence of buyers. If this creates enough upside momentum then we could see a surge into the main top at 1.1147, followed by the main Fibonacci level at 1.1167.
A sustained move under 1.1066 will signal the presence of sellers. This is a potential trigger point for an acceleration to the downside with the short-term retracement zone at 1.0987 to 1.0937 the next likely downside target zone.
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