EUR/USD Mid-Session Technical Analysis for November 5, 2020

The Euro is surging against the U.S. Dollar, setting its on course for its biggest two-day winning streak in more than three months as traders braced for the outcome of a U.S. central bank policy meeting that might hint at more stimulus.

Traders also unwound some of their safe-haven demand for the greenback as Democrat Joe Biden moved closer to victory in the U.S. presidential race with election officials tallying votes in the handful of states that will determine the outcome.

At 13:38 GMT, the EUR/USD is trading 1.1834, up 0.0109, up 0.93%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher. A trade through 1.1881 will change the main trend to up. A move through 1.1603 will reaffirm the downtrend.

The minor trend is up. This is controlling the momentum.

The short-term range is 1.2011 to 1.1603. Its retracement zone at 1.1807 to 1.1855 is currently being tested. Trader reaction to this zone should determine the near-term direction of the Forex pair.

The minor range is 1.1881 to 1.1603. Its 50% level at 1.1742 is support.

The main range is 1.1371 to 1.2011. Its retracement zone at 1.1691 to 1.1616 is the major support.

Daily Swing Chart Technical Forecast

The direction of the EUR/USD the rest of the session on Thursday is likely to be determined by trader reaction to the Fibonacci level at 1.1855 and the 50% level at 1.1807.

Bullish Scenario

A sustained move over 1.1855 will indicate the presence of buyers. This should lead to a test of the main top at 1.1881.

Taking out the main top at 1.1881 could trigger an acceleration to the upside with 1.1917 the next target, followed by 1.2011.

Bearish Scenario

A sustained move under 1.1807 will signal the presence of sellers. This should trigger a break into the minor 50% level at 1.1742.