EUR/USD Mid-Session Technical Analysis for October 24, 2019

The Euro is trading slightly lower against the U.S. Dollar on Thursday after giving back earlier gains. The selling was fueled by business surveys that pointed to stagnating economic momentum in the Euro Zone. The weakness in the region was reaffirmed earlier in the session when IHS Markit’s flash composite PMI for October, seen as a good guide to economic health, remained perilously close to the 50 mark that separates growth from contraction and below forecasts.

At 12:12 GMT, the EUR/USD is trading 1.1127, down 0.0003 or -0.03%.

In other news, the European Central Bank (ECB) kept rates unchanged on Thursday, in what marks Mario Draghi’s last monetary policy meeting at the bank.

Additionally, the ECB also kept its forward guidance unchanged, suggesting that the main interest rates will remain at their current or lower levels until there’s strong evidence of a pick up in prices.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top at 1.1179 on October 21. A trade through 1.1179 will negate the chart pattern and signal a resumption of the uptrend.

The minor trend is also up. A trade through 1.1106 will change the minor trend to down. This will confirm the shift in momentum to down.

The minor range is 1.1179 to 1.1106. Its 50% level or pivot at 1.1143 is potential resistance. It is controlling the direction of the EUR/USD today.

Another minor range is 1.0991 to 1.1179. Its 50% level at 1.1085 is potential support.

The main range is 1.0879 to 1.1179. Its retracement zone at 1.1029 to 1.0994 is another potential downside target. It’s also a value area.

Daily Technical Forecast

Based on the early price action, the direction of the EUR/USD the rest of the session on Thursday is likely to be determined by trader reaction to the pivot at 1.1143.

Bearish Scenario

A sustained move under 1.1143 will indicate the presence of sellers. The first target is a downtrending Gann angle at 1.1119.

Crossing to the weak side of the angle at 1.1119 will indicate the selling is getting stronger. This could lead to a test of a long-term downtrending Gann angle at 1.1107, followed closing by the minor bottom at 1.1106. This is a potential trigger point for an acceleration to the downside with the 50% level at 1.1085 the next likely target.

If 1.1085 fails as support then look for a plunge into an uptrending Gann angle at 1.1049.

Bullish Scenario

Overtaking the pivot at 1.1143 will signal the presence of buyers. This could lead to a labored rally with downtrending Gann angles coming in at 1.1149 and 1.1164. The latter is the last potential resistance angle before the resistance cluster at 1.1179 and the major Fibonacci level at 1.1185.

The Fib level at 1.1185 is a potential trigger point for an acceleration to the upside.