EUR/USD Mid-Session Technical Analysis for October 16, 2020A bullish tone could develop on a sustained move over 1.1722 and a bearish tone could develop on a sustained move under 1.1696.
The Euro is trading slightly better against the U.S. Dollar on Friday. Profit-taking ahead of the weekend after a steep break this week could be behind the price action.
In the U.S., Core Retail Sales rose 1.5% and Retail Sales were up 1.9%.
Euro Zone annual inflation fell for the second month running to a four-year low in September, the European Union’s statistics office Eurostat confirmed on Friday, mainly as a result of a sharp drop in volatile energy prices.
At 13:20 GMT, the EUR/USD is trading 1.17282, up 0.0021 or +0.18%.
Eurostat said consumer inflation in the 19 countries sharing the Euro was plus 0.1% month-on-month in September for a 0.3% year-on-year fall after a 0.2% annual price decline in August – in line with initial estimates released at the start of October.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. The main trend will change to up on a trade through 1.1831. A move through 1.1613 will reaffirm the downtrend.
The first minor range is 1.1613 to 1.1831. The EUR/USD is currently being tested at 1.1722 to 1.1696.
The minor range is 1.1831 to 1.1689. Its 50% level at 1.1760 is the next target.
On the upside, the key target area is 1.1812 to 1.1831. The major support is 1.1613 to 1.1589.
Daily Swing Chart Technical Forecast
The early price action on Friday indicates a bullish tone could develop on a sustained move over 1.1722 and a bearish tone could develop on a sustained move under 1.1696.
A sustained move over 1.1722 will indicate the presence of buyers. This could trigger a rally into 1.1760. This is a potential trigger point for an acceleration to the upside.
A sustained move under 1.1722 will signal the presence of sellers. The first downside target is 1.1696, followed closely by 1.1689. This is a potential trigger point for an acceleration to the downside.
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