EUR/USD Mid-Session Technical Analysis for November 27, 2019

The Euro is trading lower on Wednesday, briefly piercing the psychological 1.10 level against the U.S. Dollar as increased optimism over a U.S.-China trade deal made the greenback a more attractive investment. There was little data released from the Euro Zone on Wednesday, however, most investors expect the slew of economic data from the U.S. to meet or exceed expectations.

At 13:44 GMT, the EUR/USD is trading 1.1002, down 0.0020 or -0.18%.

Besides the optimism over the trade deal, the Euro was pressured after the Commerce Department said orders for durable goods rose 0.6% in October after dropping 1.4% in September.

Additionally, the Commerce Department also said the U.S. economy grew at a moderate 2.1% rate over the summer, slightly faster than first estimated. Traders were looking for a 1.9% increase.

Despite the better-than-expected GDP performance, many economists say they think growth is slowing sharply in the current quarter.

Weekly Unemployment Claims also came in better-than-expected at 213K. Traders were anticipating 223K.

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. The EUR/USD is currently testing its retracement zone at 1.1029 to 1.0994. Trader reaction to this zone could determine the longer-term trend of the Forex pair.

The short-term range is 1.1176 to 1.0989. Its retracement zone at 1.1083 to 1.1104 is resistance.

Daily Technical Forecast

Based on the early price action and the current price at 1.1002, the direction of the EUR/USD the rest of the session on Wednesday is likely to be determined by trader reaction to the Fibonacci level at 1.0994.

Bearish Scenario

A sustained move under 1.0994 will indicate the selling is getting stronger. The next target is the main bottom at 1.0989, followed closely by an uptrending Gann angle at 1.0982. This is a potential trigger point for an acceleration to the downside with the next target angle coming in at 1.0930.

Bullish Scenario

A sustained move over 1.0994 will signal the presence of buyers. These are likely traders defending the main bottom at 1.0989. If this move creates enough upside momentum then look for a retest of the downtrending Gann angle at 1.1017.

Taking out 1.1017 could trigger a move into the main 50% level at 1.1029. This is a potential trigger point for an acceleration into the next downtrending Gann angle at 1.1057.