EUR/USD Mid-Session Technical Analysis for October 28, 2019

The Euro is trading slightly higher against the U.S. Dollar as hopes of a U.S.-China trade deal encouraged investors to shed hedge positions in the greenback. Furthermore, after the European Central Bank left policy unchanged last week, traders are now looking forward to Wednesday’s widely expected Federal Reserve rate cut. This move has been widely anticipated for weeks, but traders are focusing on the chances of a December rate cut. The Fed may reveal its future plans at its press conference following its interest rate and monetary policy decisions.

At 14:43 GMT, the EUR/USD is trading 1.1093, up 0.0013 or +0.12%.

In other news, speculators slashed their long-held long dollar positions to $15.31 billion as of October 22, versus $20.79 billion the previous week, according to calculations by Reuters and the U.S. Commodity Futures Trading Commission.

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 on October 21 at 1.1179.

The main trend will officially turn lower on a trade through 1.0879. A move through 1.1179 will negate the closing price reversal top and signal a resumption of the uptrend.

The minor trend is down. This move confirms the downside momentum. A trade through 1.1163 will change the minor trend to up. A move through 1.0991 reaffirms the minor trend.

The first minor range is 1.1179 to 1.1073. Its 50% level at 1.1126 is potential resistance.

The second minor range is 1.0991 to 1.1179. Its 50% level at 1.1085 is currently being tested. Main trend traders are trying to build a support base at this level on Monday.

The main range is 1.0879 to 1.1179. Its retracement zone at 1.1029 to 1.0994 is the primary downside target and potential value area.

Daily Technical Forecast

Based on the early price action and the current price at 1.1093, the direction of the EUR/USD the rest of the session on Monday is likely to be determined by trader reaction to the 50% level at 1.1085.

Bullish Scenario

A sustained move over 1.1085 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for the rally to possibly extend into a pair of targets at 1.1126 and 1.1129.

Bearish Scenario

A sustained move under 1.1085 will signal the presence of sellers. The next downside targets are a downtrending Gann angle at 1.1079, Friday’s low at 1.1073 and an uptrending Gann angle at 1.1069.

The Gann angle at 1.1069 is a potential trigger point for an acceleration to the downside with the next target the main 50% level at 1.1029.