EUR/USD Mid-Session Technical Analysis for November 26, 2019

The Euro is posting a slight gain against the U.S. Dollar on Tuesday. The Forex pair is trading inside yesterday’s trading range, which tends to indicate investor indecision and impending volatility.

The volume is lackluster as many of the major banks have already moved to the sidelines ahead of Thursday’s U.S. bank holiday. Volume is expected to remain well-below average the rest of the trading session and possibly on Wednesday and Friday.

At 13:39 GMT, the EUR/USD is trading 1.1023, up 0.0011 or +0.10%.

Prior to today’s trading session, the EUR/USD had been under pressure due to a divergence in monetary policy and a resilient U.S. economy. Optimism over a U.S.-China trade deal should be supporting the Euro, but the economy is so bad, hedge funds and money managers think it’s a better idea to sell rallies.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.0989 will reaffirm the downtrend. The main trend will change to up on a move 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 of the EUR/USD.

The minor range is 1.0989 to 1.1097. Its 50% level or pivot at 1.1043 is potential resistance.

The short-term range is 1.1176 to 1.0989. Its retracement zone at 1.1083 to 1.1104 is resistance. This area stopped the selling at 1.1097 on November 21.

Daily Technical Forecast

Based on the early price action and the current price at 1.1023, the key level to watch today is the main 50% level at 1.1029.

Bearish Scenario

A sustained move under 1.1029 will indicate the presence of sellers. If this creates enough downside momentum then look for the selling to extend into the main Fibonacci level at 1.0994, followed by the main bottom at 1.0989.

The major support angle is 1.0979.

Bullish Scenario

Overtaking 1.1029 will signal the return of buyers with the first target angle dropping in at 1.1037, followed by the 50% level at 1.1043.

The pivot at 1.1043 is a potential trigger point for an acceleration to the upside.