EUR/USD Mid-Session Technical Analysis for September 17, 2020

The Euro is trading nearly unchanged against the U.S. Dollar on Thursday after clawing back nearly all of its earlier losses. The single-currency had been under pressure since the Federal Reserve left interest rates on hold late Wednesday. The greenback rebounded against the Euro as dealers unwound short positions taken ahead of the Fed decision.

At 14:18 GMT, the EUR/USD is trading 1.1804, down 0.0012 or -0.10%.

But with the new guidance from the Fed focused on keeping U.S. interest rates at current record lows until employment and inflation reach its targets, the dollar’s strength was likely to be temporary.

In other news, European Central Bank Vice-President Luis de Guindos said on Thursday the Euro’s exchange rate is a “fundamental” determinant of Euro Zone inflation. With his comments, he joined a number of ECB policymakers warning about the strength of the single currency.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The downtrend was reaffirmed early Thursday when sellers took out the previous main bottom at 1.1753. A trade through 1.1917 changes the main trend to up.

On the downside, the key target is the 50% level at 1.1668.

The new minor range is 1.1917 to 1.1737. Its 50% level at 1.1827 is the next upside target. Since the main trend is down, sellers could re-emerge on the first test of this level.

The new short-term range is 1.2011 to 1.1737. Its retracement zone at 1.1874 to 1.1906 is another potential resistance zone.

Daily Swing Chart 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 first pivot at 1.1827.

Bearish Scenario

A sustained move under 1.1827 will indicate the presence of sellers. The first downside target would be 1.1778, followed by 1.1737.

Bullish Scenario

A sustained move over 1.1827 will signal the presence of buyers. If this creates enough upside momentum then look for a potential surge into the 50% level at 1.1874.