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

The Euro is trading slightly higher against the U.S. Dollar on Tuesday, helped by a slightly upbeat German business morale survey which calmed concerns over a weakening German manufacturing sector. German business morale rose in September for the first time in six months but Europe’s largest economy is likely slipping into recession as the U.S.-China trade conflict and Brexit bite, the Ifo economic institute said.

At 14:39 GMT, the EUR/USD is trading 1.0999, up 0.0006 or +0.06%.

Additionally, according to the U.S. Commodity Futures Trading Commission (CFCT), large short bets against the single currency are also keeping investors sidelined. Fears of an economic slowdown have prompted hedge funds to ramp up their negative bets against the Euro in recent weeks with overall bets at their largest in three months, according to the futures data.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade through 1.0927 will change the main trend to down. A move through 1.1110 will signal a resumption of the uptrend.

The minor trend is down. This is controlling the momentum. A trade through 1.1076 will change the minor trend to up.

The short-term range is 1.0927 to 1.1110. Its retracement zone at 1.1019 to 1.0997 is currently being tested.

The main range is 1.1164 to 1.0927. Its retracement zone at 1.1045 to 1.1073 is controlling the near-term direction of the EUR/USD.

Daily Technical Forecast

Based on the early price action and the current price at 1.0999, the direction of the EUR/USD the rest of the session on Tuesday is likely to be determined by trader reaction to the short-term Fibonacci level at 1.0997.

Bearish Scenario

A sustained move under 1.0997 will indicate the presence of sellers. If this creates enough downside momentum then look for a break into an uptrending Gann angle at 1.0967. If this fails then look for the selling to possible extend into the next uptrending Gann angle at 1.0947. This is the last potential support angle before the 1.0927 main bottom.

Bullish Scenario

A sustained move over 1.0997 will signal the presence of buyers. The first target angle comes in at 1.1007. Overtaking this angle could lead to a test of the short-term Fibonacci level at 1.1019. This is a potential trigger point for an acceleration to the upside with the next target the main 50% level at 1.1045.