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EUR/USD Mid-Session Technical Analysis for October 15, 2020

By:
James Hyerczyk
Published: Oct 15, 2020, 18:45 UTC

The near-term direction of the EUR/USD is likely to be determined by trader reaction to 1.1722 to 1.1696.

EUR/USD

The Euro is trading lower late in the session on Thursday, pressured by safe-haven demand for the U.S. Dollar on signs the U.S. economy was stalling while fiscal stimulus appeared unlikely before the U.S. presidential election kept investors in a risk-off stance.

At 18:32 GMT, the EUR/USD is trading 1.1700, down 0.0047 or -0.40%.

In other news, France has imposed curfews as coronavirus infections rise, and other European Union members were also responding to spiking new cases with fresh restrictions. Regardless, Bloomberg reported the European Central Bank “sees little reason” to rush into new stimulus this month even as coronavirus cases spike and the economy slows.

Daily EUR/USD

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1.1613 will reaffirm the downtrend. A move through 1.1831 will change the main trend to up.

The minor range is 1.1613 to 1.1831. Its retracement zone at 1.1722 to 1.1696 is currently being tested.

The main retracement zone at 1.1589 to 1.1490 is the primary downside target.

Short-Term Outlook

The near-term direction of the EUR/USD is likely to be determined by trader reaction to 1.1722 to 1.1696.

Bearish Scenario

A prolonged move under 1.1696 will indicate the selling is getting stronger. If this move creates enough downside momentum then look for the selling to possibly extend into the main bottom at 1.1613, followed closely by the main 50% level at 1.1589.

Bullish Scenario

A sustained move over 1.1722 will signal the return of buyers. If this move generates enough upside momentum then look for the buying to possibly extend into the minor 50% level at 1.1812, followed by the main top at 1.1831.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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