EUR/USD Mid-Session Technical Analysis for November 21, 2019

The Euro is edging higher against the U.S. Dollar on Thursday. The price action isn’t being fueled by a stronger Euro, per se, but rather a weaker dollar. The greenback is trading lower against the single-currency and other majors on renewed hope for a trade deal.

On Wednesday, the dollar was supported by safe-haven buying after a report said that a trade deal could be postponed until next year.

At 12:49 GMT, the EUR/USD is trading 1.1089, up 0.0017 or +0.15%.

Earlier today, the EUR/USD started to turnaround when Gao Feng, China’s Ministry of Commerce spokesman said, “China is willing, on the basis of equal and mutual respect with the U.S., to work together to properly settle areas of common concern and strive for a phase-one trade agreement.”

He went on to say “external rumors” about the trade talks are not accurate, and noted the two trade delegations remain in close communication.

Later, it was announced that China’s top trade official has invited U.S. negotiators to take part in a fresh round of face-to-fact talks, the Wall Street Journal reported on Thursday, citing people familiar with the matter.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has been trending higher since the formation of a closing price reversal bottom on November 14 at 1.0989.

A trade through 1.0989 will negate the chart pattern and signal a resumption of the downtrend. The main trend will change to up on a move through 1.1176.

The short-term range is 1.1176 to 1.10989. Its retracement zone at 1.1083 to 1.1104 is controlling the near-term direction of the Forex pair. The EUR/USD is currently trading inside this zone.

On the downside, the major retracement zone support is 1.1029 to 1.0994.

Daily Technical Forecast

Based on the early price action and the current price at 1.1089, the direction of the EUR/USD the rest of the session on Thursday is likely to be determined by trader reaction to the uptrending Gann angle at 1.1089 and the short-term 50% level at 1.1083.

Bullish Scenario

A sustained move over 1.1089 will indicate the presence of buyers. This could trigger a quick rally into a downtrending Gann angle at 1.1101 and a short-term Fibonacci level at 1.1104.

The Fib level at 1.1104 is a potential trigger point for an acceleration to the upside with the next target angle dropping in at 1.1139.

Bearish Scenario

A sustained move under 1.1083 will signal the presence of sellers. This could trigger a break into a long-term uptrending Gann angle at 1.1064. This is a potential trigger point for an acceleration into the next uptrending Gann angle at 1.1039.

Side Notes

Some may see 1.1104 as the upside breakout level and 1.1083 as the breakdown level. This may help avoid an intra-day “chop” inside the retracement zone.