EUR/USD Mid-Session Technical Analysis for October 14, 2020

The Euro is trading lower against the U.S. Dollar on Wednesday after touching a nine-day low, as global equity markets remained cautious in light of diminishing hopes for a COVID-19 vaccine or U.S. fiscal stimulus.

Traders also feel the Euro is vulnerable to an even steeper decline as a return of restrictions on economic activity in Europe to battle a second wave of coronavirus infections unnerves investors.

At 11:26 GMT, the EUR/USD is trading 1.1742, down 0.0004 or -0.04%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A new main top has formed at 1.1831. A trade through this level will change the main trend to up. A move through 1.1612 will signal a resumption of the downtrend.

The minor trend is also down. The minor trend changed trend earlier today when sellers took out 1.1725.

The short-term range is 1.2011 to 1.1612. Its retracement zone at 1.1811 to 1.1859 is resistance. This zone stopped the rally at 1.1831 on October 9.

The minor range is 1.1872 to 1.1612. The EUR/USD is currently trading on the weak side of its retracement zone at 1.1742 to 1.1773.

The main downside target is the retracement zone at 1.1691 to 1.1616.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the EUR/USD on Wednesday is likely to be determined by trader reaction to the minor 50% level at 1.1742.

Bearish Scenario

A sustained move under 1.1742 will indicate the presence of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into 1.1696 to 1.1691.

Bullish Scenario

A sustained move over 1.1742 will signal the presence of buyers. This could trigger a rally into 1.1773. Overtaking this level could lead to an acceleration into 1.1811.

For a look at all of today’s economic events, check out our economic calendar.