EUR/USD Mid-Session Technical Analysis for October 6, 2020

The Euro is trading flat against the U.S. Dollar on Tuesday as traders continue to monitor the health of U.S. President Trump after his release from the hospital following his positive coronavirus test. Meanwhile, all eyes remain on Washington as policymakers continue to discuss the details of a possible fiscal stimulus package.

At 10:57 GMT, the EUR/USD is trading 1.1777, down 0.0009 or -0.08%.

In other news, a second wave of the coronavirus pandemic risks delaying the Euro Zone’s economic recovery, European Central Bank President Christine Lagarde said on Tuesday.

“We now fear that the containment measures that have to be taken by authorities will have an impact on this recovery, so instead of that V-shape that we all long for and hope for, we fear that it might have that second arm of the V a little bit more shaky,” she told the Wall Street Journal CEO Council in a pre-recorded conversation.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher. A trade through 1.1872 will change the main trend to up. A move through 1.1612 will signal a resumption of the downtrend.

The minor trend is up. This is controlling the momentum. A trade through 1.1696 will change the minor trend to down.

The minor range is 1.1872 to 1.1612. The EUR/USD is currently trading on the strong side of its retracement zone at 1.1773 to 1.1742, making it support.

The short-term range is 1.2011 to 1.1612. Its retracement zone at 1.1811 to 1.1859 is the primary upside target and potential resistance.

The main support is the retracement zone at 1.1691 to 1.1616.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the EUR/USD is likely to be determined by trader reaction to the minor Fibonacci level at 1.1773.

Bullish Scenario

A sustained move over 1.1773 will indicate the presence of buyers. This could trigger a rally into the 50% level at 1.1811. Since the main trend is down, sellers are likely to come in on a test of this level. Overcoming 1.1811, however, could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 1.1773 will signal the presence of sellers. This could lead to a pullback into 1.1742. This price is a potential trigger point for an acceleration to the downside.

For a look at all of today’s economic events, check out our economic calendar.