EUR/USD Mid-Session Technical Analysis for November 25, 2019

The Euro is under pressure on Monday as investors worried about the near-term outlook for the Euro Zone economy continued to dump the single-currency. Additionally, recent government data shows that hedge funds have increased their negative bets against the Euro, with the latest weekly data showing a small increase in overall net short positions.

At 13:52 GMT, the EUR/USD is trading 1.1012, down 0.0007 or -0.06%.

Speculators raised net long bets on the dollar to a five-week high in the week to November 19, data from the U.S. Commodity Futures Trading Commission (CFTC) showed. But they added to net short Euro positions.

Stripping out all the noise, the U.S. Dollar is simply a more desirable currency at this time because the U.S. economy is showing resiliency, while the Euro Zone economy continues to show lower growth prospects.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.0989 will signal a resumption of the downtrend. The main trend will change to up on a trade through 1.1097.

The main range is 1.0879 to 1.1179. Its retracement zone at 1.1029 to 1.0994 is currently being tested. This zone is controlling the near-term direction.

The short-term range is 1.0989 to 1.1097. Its 50% level at 1.1043 is new resistance.

Trading on the weak-side of a pair of 50% levels at 1.1029 and 1.1043 is helping to generate the downside bias.

Daily Technical Forecast

Based on the early price action and the current price at 1.1012, the direction of the EUR/USD the rest of the session on Monday is likely to be determined by trader reaction to the main 50% level at 1.1029.

Bearish Scenario

A sustained move under 1.1029 will indicate the presence of sellers. The first target is a steep downtrending Gann angle at 1.1017. Crossing to the weak side of this angle will put the EUR/USD in a bearish position with the next targets the main Fibonacci level at 1.0994 and a main bottom at 1.0989.

If 1.0989 fails as support then look for the selling to extend into the long-term uptrending Gann angle at 1.0977.

Bullish Scenario

A sustained move over 1.1029 will signal the presence of buyers. If this creates enough upside momentum then look for a rally into the short-term 50% level at 1.1043, followed by a steep downtrending Gann angle at 1.1057.