EUR/USD Mid-Session Technical Analysis for November 22, 2019

The Euro is trading nearly flat on Friday after confirming yesterday’s potentially bearish closing price reversal top earlier in the session. The single-currency is also in a position to finish higher for the week after hitting a two-week higher earlier in the week.

The price action can best be described as sideways this week as opposing forces connected to U.S.-China trade talks provided both support and resistance at times. Earlier in the week, the Euro was driven higher by optimism of a trade deal. Late in the week, the single-currency weakened as news reports cast doubts that a deal could be reached in a timely manner.

At 14:00 GMT, the EUR/USD is trading 1.1058, unchanged.

Daily Technical Analysis

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

A trade through 1.0989 will negate the closing price reversal bottom and signal a resumption of the downtrend. The main trend will change to up on a move through 1.1176.

The minor trend is also down. A trade through 1.1097 will change the minor trend to up. This will also confirm the shift in momentum to the upside.

The main range is 1.0879 to 1.1179. Its retracement zone at 1.1029 to 1.0994 is major support.

The intermediate range is 1.1176 to 1.0989. Its retracement zone at 1.1083 to 1.1104 is resistance. This zone stopped the buying on November 21 at 1.1097.

The short-term range is 1.0989 to 1.1097. Its retracement zone at 1.1043 to 1.1030 is the next downside target.

Daily Technical Forecast

Based on the early price action and the current price at 1.1058, the direction of the EUR/USD the rest of the session on Friday is likely to be determined by trader reaction to the uptrending Gann angle at 1.1049.

Bullish Scenario

A sustained move over 1.1049 will indicate the presence of buyers. If this creates enough upside momentum then look for a potential short-covering rally into 1.1083.

Bearish Scenario

A sustained move under 1.1049 will signal the presence of sellers. The next target is the 50% level at 1.1043.

If 1.1043 fails as support then look for the selling to possibly extend into the main 50% level at 1.1029. This is followed by an uptrending Gann angle at 1.1019. This is a potential trigger point for an acceleration to the downside.