EUR/USD Mid-Session Technical Analysis for May 8, 2020

The Euro is inching higher against the U.S. Dollar on Friday shortly before the release of the U.S. Non-Farm Payrolls report at 12:30 GMT. The report is expected to show the American economy has lost the most jobs since the Great Depression. But analysts said backward-looking economic data could be ignored by traders as they begin to put much more emphasis on the speed at which lockdowns are lifted and evidence of when an economic recovery would take hold.

At 11:52 GMT, the EUR/USD is trading 1.0840, up 0.0006 or +0.05%.

In other news, Euro Zone government bond yields edged lower on Friday, reflecting some caution about U.S. and Chinese representatives agreeing to strengthen cooperation to salvage a trade deal between the two countries.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 1.0727 will change the main trend to down. A move through 1.1018 will signal a resumption of the uptrend.

The minor trend is down. However, yesterday’s closing price reversal bottom and today’s confirmation of the chart pattern, has neutralized the momentum.

A trade through 1.0766 will negate the closing price reversal bottom, signaling that the selling pressure is increasing.

The main range is 1.0636 to 1.1147. The EUR/USD is currently trading inside its retracement zone at 1.0892 to 1.0831. This zone is controlling the near-term direction of the Forex pair.

The intermediate range is 1.1147 to 1.0727. Its retracement zone at 1.0937 to 1.0987 is a potential upside target.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 1.0840, the direction of the EUR/USD the rest of the session on Friday is likely to be determined by trader reaction to the Fibonacci level at 1.0831.

Bullish Scenario

A sustained move over 1.0831 will indicate the presence of buyers. If this creates enough upside momentum then look for a possible test of 1.0892.

Bearish Scenario

A sustained move under 1.0831 will signal the presence of sellers. The first downside target is a minor pivot at 1.0811, followed by 1.0766. If the latter fails as support then look for the selling to possibly extend into the main bottom at 1.0727.