EUR/USD Mid-Session Technical Analysis for November 11, 2020The direction of the EUR/USD into the close is likely to be determined by trader reaction to 1.1762.
The Euro is trading lower against the U.S. Dollar on Wednesday as optimism about a potential coronavirus vaccine pushes up demand for higher-yielding assets. Losses are being limited, however, by worries about how the drug will be delivered and by a surge of new infections in the United States that threatens to derail the fragile economic recovery.
At 15:08 GMT, the EUR/USD is trading 1.1752, down 0.0071 or -0.60%.
75% of retail CFD investors lose money
ECB Eyes More Bond Buys, Cheap Loans to Keep Euro Zone Afloat
The European Central Bank will focus on more emergency bond purchases and cheap loans when it puts together its new stimulus package next month to help the pandemic-hit Euro Zone economy, ECB President Christine Lagarde said on Wednesday.
Lagarde said inflation in the 19-country bloc was now likely to remain negative for longer than expected as a second wave of the COVID-19 outbreak forces new restrictions on economic activity.
She also added, “While the latest news on a vaccine looks encouraging, we could still face recurring cycles of accelerating viral spread and tightening restrictions until widespread immunity is achieved,” she added.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top on Monday and its confirmation the next day.
A trade through 1.1920 will signal a resumption of the uptrend, while a move through 1.1603 will change the main trend to down.
The short-term range is 1.2011 to 1.1603. The EUR/USD is currently trading on the weak side of its retracement zone at 1.1807 to 1.1855, making this area resistance.
The minor range is 1.1603 to 1.1920. Its retracement zone at 1.1762 to 1.1724 is currently being tested. Trader reaction to this area could determine the near-term direction of the Forex pair. Since the main trend is up, buyers may come in on a test of this zone.
The major support zone is 1.1691 to 1.1616.
Daily Swing Chart Technical Forecast
The direction of the EUR/USD into the close is likely to be determined by trader reaction to 1.1762.
A sustained move under 1.1762 will indicate the presence of sellers. This could trigger a further decline into the Fibonacci level at 1.1724. If this level fails then look for the move to extend into the main 50% level at 1.1691.
A sustained move over 1.1762 will signal the presence of buyers. This could create the upside momentum needed to challenge the 50% level at 1.1807.
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