EUR/USD Mid-Session Technical Analysis for October 15, 2019

The Euro is trading lower against the U.S. Dollar shortly after the U.S. opening. Earlier in the session, the single-currency traded higher, helped by more positive vibes about a Brexit deal and as dimming optimism over a U.S.-China trade deal kept the greenback in a range.

In other news, the German ZEW headline numbers for October came in better-than-expected at -22.8 versus an estimate of -27.0 and the previously reported -22.5.

It’s another light day in the U.S. with FOMC member speakers George and Bullard on tap. Traders are likely to continue to focus on any new developments over U.S.-China trade relations. If conditions continue to sour then look for the U.S. Dollar to strengthen due to safe-haven buying.

At 11:09 GMT, the EUR/USD is trading 1.1012, down 0.0015 or -0.14%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has been trending higher since October 1.

The minor trend is up. A trade through 1.1063 will indicate the buying is getting stronger. A move through 1.0941 will change the minor trend to down, shifting momentum back to the downside.

The main range is 1.1164 to 1.0879. Its retracement zone at 1.1021 to 1.1055 is resistance. This zone stopped the rally at 1.1063 last Friday.

The minor range is 1.0879 to 1.1063. Its retracement zone at 1.0971 to 1.0949 is the next downside target.

Daily Technical Forecast

Based on the early price action and the current price at 1.1021, the direction of the EUR/USD the rest of the session on Tuesday is likely to be determined by trader reaction to the main 50% level at 1.1021.

Bearish Scenario

A sustained move under 1.1021 will indicate the presence of sellers. This could trigger a break into the uptrending Gann angle at 1.1001, followed by an uptrending Gann angle at 1.0979. If this angle fails to hold then look for the selling to possibly extend into 1.0971 to 1.0949.

Bullish Scenario

A sustained move over 1.1021 will signal the presence of buyers. If this move can create enough upside momentum then look for the rally to possibly extend into a resistance cluster at 1.1055.