EUR/USD Mid-Session Technical Analysis for October 7, 2020

The Euro is trading higher on Wednesday after President Trump clarified his decision from Tuesday to end stimulus negotiations with the Democrats to focus on the confirmation of his Supreme Court nominee, Amy Coney Barrett. That news triggered a plunge in higher risk assets, while making the U.S. Dollar a more attractive asset.

At 11:40 GMT, the EUR/USD is trading 1.1766, up 0.0034 or +0.29%.

The Euro rebounded after President Trump on Tuesday night said he’s willing to pass several independent coronavirus relief measures, including a new round of stimulus checks.

Later today at 18:00 GMT, traders will get the opportunity to respond to the minutes from the latest Federal Open Market Committee meeting.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. 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, however, yesterday’s closing price reversal top may be signaling that momentum is getting ready to shift to the downside. The minor trend will change to down on a trade through 1.1696, but a trade through 1.1808 will negate the closing price reversal top.

The EUR/USD is currently trading inside a series of retracement level, suggesting a possible choppy trade.

On the downside, potential support is three 50% levels at 1.1742, 1.1710 and 1.1691.

Potential resistance is 1.1773, the Euro is currently testing this level. This is followed by 1.1811 to 1.1859.

Daily Swing Chart Technical Forecast

The early price action suggests the direction of the EUR/USD the rest of the session will be determined by trader reaction to 1.1773.

Bullish Scenario

A sustained move over 1.1773 will indicate the presence of buyers. This could trigger a surge into a resistance cluster at 1.1808 – 1.1811. Overtaking the latter could extend the move into 1.1859.

Bearish Scenario

A sustained move under 1.1773 will signal the presence of sellers with 1.1742 the first downside target, followed by 1.1710 and a support cluster at 1.1696 – 1.1691.