EUR/USD Mid-Session Technical Analysis for September 25, 2019

The Euro is trading lower against the U.S. Dollar on Wednesday as investors continue to punish the single-currency due to data from earlier in the week that showed a weakening manufacturing sector. In the meantime, traders are downplaying the impact of yesterday’s weaker-than-expected U.S. consumer confidence data and the announcement of the start of a formal impeachment inquiry of President Trump by the Democrats in the U.S. House of Representatives.

At 12:52 GMT, the EUR/USD is trading 1.0985, down 0.0035 or -0.32%.

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 downside momentum. A trade through 1.1076 will change the minor trend to up and shift momentum to the upside.

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

The main range is 1.1164 to 1.0926. Its retracement zone at 1.1045 to 1.1073 is resistance. This zone is also controlling the longer-term direction of the EUR/USD.

Daily Technical Forecast

Based on the early price action and the current price at 1.0985, the direction of the EUR/USD on Wednesday is likely to be determined by trader reaction to the Fibonacci level at 1.0997.

Bearish Scenario

A sustained move under 1.0997 will indicate the presence of sellers. The first downside target is the uptrending Gann angle at 1.0972. If this angle fails as support then look for the selling to extend into the next uptrending Gann angle at 1.0950. This is the last potential support angle before the 1.0927 main bottom.

Bullish Scenario

Overtaking and sustaining a rally over 1.0997 will signal the return of buyers. The first upside target is a resistance cluster at 1.1017 to 1.1019. This area has produced three highs this week.

Taking out 1.1019 will indicate the buying is getting stronger with the next target the 50% level at 1.1045.